How to Start a Business?

Start on a small scale before going all out. Some people believe that entrepreneurs are risk-takers. But for the most part, successful entrepreneurs don’t like walking blindfolded on a limb. Instead, they take controlled risks. They test an idea on a small scale, then build on what works well, tweak what shows promise, and discard the disasters.

Don’t fixate on mistakes or get demoralized by them. The difference between successful people and everyone else is that successful people learn from their mistakes and move on. They don’t dwell on failure, blame the economy, curse their bad luck, or blame other people for their fate. If the path to their goal is blocked, they look for an alternate path or sometimes choose a different, more attainable goal.

Learn from others. Find mentors, join groups with like-minded people, learn everything you can about your industry and what it takes to get from where you are to where you want to be. Attend industry conferences. Take training courses when they are available. Buy courses offered by experts. You’ll save a tremendous amount of trial and error by learning from people who have been there before.

Think of what you do AS a business. Keep track of income and expenses, keep business money separate from personal funds, find out what regulations your business needs to abide by.

Understand the difference between working for yourself and building an ongoing business. If you want to build a business, you need to develop systems and methods that allow you to hire other people to DO the work of the business while you plan it. You limit the potential for growth if you don’t bring in other people to work for you.

Get to know investors. If the business you are starting will need investors to grow, do what you can to find out what investors are looking for and where to find those who might invest in your kind of business. Local angel and venture capital groups are a good place to start – attend meetings they hold or meetings that investors are speaking at. Have an elevator pitch practiced so you can use it to interest investors if you get a chance.

Put yourself out there. Ask for what you want (in a polite way).

Remember, people like to do business with people they know. Get the ball rolling, and keep it rolling by continually reaching out and introducing yourself to new people.

Embrace Digital Marketing. Even if you’re running a local business, you need a comprehensive digital presence. At a minimum, you need a professional-looking website, an email list that lets you communicate with customers and prospects on a regular basis and a presence on the social media channels that your customers frequent.

While you may get many of your customers by word of mouth, referrals, or networking, you still need a strong digital presence. The reason: prospective customers are likely to look you up on the web before they decide whether or not to contact you. Coupons, special offers, and practical information sent to your email list can encourage customers and prospects to buy from you or make repeat purchases.

Never stop learning and trying new things. What’s profitable now, won’t necessarily be profitable next year or 10 years from now. So, don’t let yourself fall into the “this is the way I’ve always done things” rut. Keep your eyes and ears open for new things. Are there newer or better ways to market your products and services? Are customers asking for something you’re not offering? Is there a different type of customer you should be targeting? Get answers by reading everything you can about your industry and listening to your customers.

Other psychological Factors important to take care

1. Be Passionate

You don't have to love whatever your business is about (and probably shouldn't), but you do have to be fired up about it. You're going to devote a lot of time and energy to starting a business and building it into a successful enterprise, so it's really important that you truly deeply enjoy what you do, whether it be running fishing charters, creating pottery, or providing financial advice.

2. Start While You Are Still Employed

How long can most people live without money? Not long. And it may be a long time before your new business actually makes any profits. Being employed while you're starting a business means the money in your pocket while you're going through the start-up process.

3. Don't Do it Alone

You need a support system while you're starting a business (and afterward). A family member or friend that you can bounce ideas off and who will listen sympathetically to the latest business start-up crisis is invaluable. Even better, find a mentor or, if you qualify, apply for a business start-up program such as the ones provided through Futurpreneur Canada. When you're starting a business experienced guidance is the best support system of all.

4. Get Clients or Customers Lined Up

Don't wait until you've officially started your business to line these up, because your business can't survive without them. Do the networking. Make the contacts. Sell or even give away your products or services. You can't start marketing too soon.

5. Write a Business Plan

The main reason for doing a business plan first when you're thinking of starting a business is that it can help you avoid sinking your time and money into starting a business that will not succeed.

6. Do Your Research

You'll do a lot of research writing a business plan, but that's just a start. When you're starting a business, you need to become an expert on your industry, products and services if you're not already. Joining related industry or professional associations before you start your business is a great idea.

7. Get Professional Help

On the other hand, just because you're starting a business, doesn't mean you have to be an expert on everything. If you're not an accountant or bookkeeper, hire one (or both). If you need to write up a contract, and you're not a lawyer, hire one. You will waste more time and possibly money, in the long run, trying to do things yourself that you are not qualified to do.

8. Make Sure the Money Is Lined Up

Save up if you have to. Approach potential investors and lenders. Figure out your financial fall-back plan. Don't expect to start a business and then walk into a bank and get money. Traditional lenders don't like new ideas and don't like businesses without proven track records.

9. Be Professional

Everything about you and the way you do business needs to let people know that you are a professional running a serious business. That means getting all the accouterments such as professional business cards, a business phone, and a business email address, and treating people in a professional, courteous manner.

10. Get the Legal and Tax Issues Correct the First Time

It's much more difficult and expensive to unsnarl a mess afterward. Does your business need to be registered? Will you have to charge GST or PST? Will you have to have Workers' Compensation Insurance or deal with payroll taxes? How will the form of business ownership you choose to affect your income tax situation? Learn what your legal and tax responsibilities are before you start your business and operate accordingly.

Following the business tips above will make starting your new business both a smoother, less stressful process and go a long way towards ensuring the business you start lasts and thrives.

Hope that this guide will help you start your own business :)