Steps To Starting Your Own Business

Starting your own business? You need to consider these 10 steps.

Stats SA, in March 2019, reported that small businesses generated more than a quarter of total country turnover in business services; trade; and community, social and personal services in the first quarter of 2019. There are a lot of opportunities out there for small business in meeting some sort of customer need. Hola Business will provide you with the tools you need to kickstart your business.

 

Taking stock of yourself

Before starting any new venture or making significant life changes it's always a good idea to take stock of yourself (a self-inventory if you will). This is especially important as pertains to your business venture, and one should typically ask the following key question: Why do you want to start a business? Is it for money, for freedom and flexibility, to solve a problem, or some other reason?

Once you have established the reasons for wanting to start a business then ask yourself the following questions:

  • What are your skills?
  • On which industries are you knowledge-proficient?
  • Is it a product or service that you want to provide?
  • What is that you like to do?
  • How much capital will you need to risk – if any?
  • Will this business venture be full time or part time?

These questions are necessary to help you narrow your focus. This step is necessary to get you thinking and planning. Not only do you need to plan and set goals, you must know yourself. Know your strengths and your weaknesses and the way they may affect your day-to-day business operations.

Savvy entrepreneurs understand that the road to business ownership is a challenging one, and upfront planning and realistic projections mapping will be critical in guiding their business requirements. With this in mind Hola Business is specifically tailored to be a cost effective and easy-to-understand process of learning; developing your personal, business and financial plans while you learn.

Make sure you’re on top of the following areas.

Here are 10 steps to starting a new business

  1. Lots of research

    So you have your business idea, now it’s time to turn your idea into reality. To do this your business concept will need to undergo a validation process – i.e. does your business idea or concept solve a problem, fulfil a need or provide an offering demanded (or just required) by the market?

    You can conduct market research or focus groups, for example, and get results via trial and error to see if there is a need for your product or service. Some of the questions you should answer in carrying out your research include, but are not limited to:

    • Is there a need for your my product or service offering?

    • Exactly who makes up the market that needs it?

    • Do I have any competition that offers similar products and/or services?

    • If so, what are my competitors like? What size are their companies and offerings, what are their value propositions in relation to yours, etc.

    • How will you fit into the existing market?

    Also, remember to ask yourself questions about starting a business – the reasons therefore, realistic predictions about growth, etc. It is an important decision to make; you must be sure before you commit yourself to an endeavour like starting a business.

  2. Create a business plan

    A business plan is an outline that you will need to use to guide your business from its start-up phase to establishing it and to growing it. For this reason, it is a good idea to create a business plan template. (When you invest with Hola Business [see below] your business plan is created while you complete the course that will help you start your business.)

    There are different types of business plans for different types of businesses, and many of these are easily found as established business plan templates. If you need financial support, either via an approved lending institution or from a private investor, you will need a detailed business plan before you even consider approaching them. In these instances, a template will not help you as a detailed business plan is needed.

    This plan will include a financial plan – which will be a summary of your detailed financial plan, another essential stand-alone document required for any successful business. Lending institutions and investors will first look at your business plan to see if there is validity in your idea. If there is subsequent interest, they will more than likely request the detailed financial plan.

    If you do not need outside financing, a much shorter business plan will serve the purpose. This business plan will be for you, and is needed to give you clarity of your aims and your methods of achieving them. When you register with Hola Business, your business plan is completed section by section as you complete our course.

  3. Plan and know your finances

    Even if you don’t need a lot of money to begin your business venture, there will always be some kind of initial investment. This cost will be coupled with the liability of covering ongoing expenses before you turn a profit.

    Create a spreadsheet estimating the initial business start-up costs. These could include:

    • licenses and permits

    • equipment

    • legal fees

    • insurance

    • branding

    • market research

    • inventory

    • trademarking

    • property rental

    Then you need to anticipate expenses required to keep you operational for a minimum of one year. Some of these may include:

    • rent

    • utilities

    • marketing & advertising

    • production

    • supplies

    • travel costs

    • employee salaries and your salary

    Whatever these costs amount to will be the initial investment required.

    Once you have an estimate of how much capital is required, you may decide you need to secure funding for your business. There are various ways of doing this. Some options include:

    • Financing

    • Small business loans

    • Angel investors

    • Crowdfunding

    Work through all options most suited to your requirements and create a business plan for acquiring the capital you need to get your business started. When you do your course on how to start a business with Hola Business, you will work through many of these elements as they pertain to your business.

    Work through and solve the practical challenges of starting a business.

  4. Business structure

    Your business will fall in any of these categories: sole proprietorship, a partnership, a private company or a corporation. The type of business structure you eventually choose will impact a lot of other business factors. Some of these include your business name, your liability and the way your taxes must be filed, among many others.

    Remember that you do have the ability to change your business structure further down the line. As your business expands, or you increase your product offerings, etc., you are entitled to change the structure of your business to best aid the business in achieving the trajectory you have set.

    When you are unsure which type of business structure would best suit your needs, it may be worthwhile investing in services from a professional, such as a financial planner specialising in business, or from an attorney, for example.

    When you invest with Hola Business, you will understand the ideal business structure for your business.

  5. Business name

    Do not underestimate the potential impressions the name of your business can create. The name plays a role in almost every aspect of your business, so make sure it is a good one. Deliberate all potential implications as you consider your name options.

    Once you have your ideal business name, check to see if it has been trademarked or is in use by another business. Once this has been cleared, you will have to register your business.

    One of the very first things to do once your business name is registered is to register your business domain name. If the domain name is in use, you can try an abbreviated variation of the name; use a catchword, slogan or keyword from your business as the domain name; or see if the domain name is for sale.

  6. Get licensed

    Depending on the type of business you have, you may require a licence or permit of some kind.

    Make sure you know and get any business licences or business permits your start-up venture may require. Some of these will be once-off acquisitions; others may have to be renewed annually. Hola Business provides the appropriate links for you to go to and understand the regulations pertaining to your business.

  7. Accounting system

    No matter the size of your business, having proper systems in place – especially with regards to accounting – is necessary to run your business effectively. It makes sense that your accounting system ranks high among the most important systems in your business.

    To manage your budget, set your rates and prices, conduct business and correctly file your business taxes, an accounting system is necessary. If you have an accounting background, or are familiar with accounts and systems including taxes and the like, you can set up your accounting system yourself. If you do not have the experience or expertise, consider hiring an accountant or bookkeeper. It will serve your interests best in the long run.

    Get all the tools you need to kickstart your business, for just R1 499. Contact Hola Business today.

  8. Business location

    Will you work from home – i.e. have a home office – or will you rent office space? If so, is it shared office space or, if you are in retail, is your shop on a busy CBD street or located in a shopping centre? Your place of business is as important as your business operation itself.

    In considering the location of your business, things such as equipment, setup, deliveries to and from, etc., must all be taken into account.

    Another important aspect of your business location and something that is fundamental within your financial plan, is taking the decision as to whether you will rent or purchase the premises from which you plan to run your business?

  9. Employees / personnel

    If your plan is to hire additional personnel, this must also be a consideration right at the beginning of your business. Have an outline of all the positions you will need to fill as well as the responsibilities pertaining to each position.

    Do your research. There are guides to hiring employees for those who are inexperienced in conducting this function. Also, consider hiring third party professionals like personnel agencies to find the best-fit employee for your business.

    If there is no need to hire employees because you will make use of contractors instead, you should starting working with lawyers early on in the process. This is so you have your contractors’ agreement already in place before you start seeking contractors.

    Solo entrepreneurs will not need employees or contractors, but it is advisable to have a support team in place. The support team could be a mentor, a business or life coach, or even family members who may have some experience in the field, or generally in business. This support is your go-to resource when you need advice, motivation and reassurance.

  10. Promoting your business

    When your business is established and your focus is on attracting and retaining clients, you will need to develop your value proposition (VP).

    A value proposition is unique to each company, and should answer the question: “Why should my target market buy from me and not my competitor”. It goes a bit deeper than that, but that essentially is the nutshell, and will help you to accurately position your company in the market segment in which you operate.

    Once your business is up and running, you need to start attracting clients and customers. You will want to start with the basics by writing a unique selling proposition (USP) and creating a marketing plan. Then, explore as many small business marketing ideas as possible so you can decide how to promote your business most effectively.

 

Hola Business is brought to you by instructors who have over 2 decades of experience in business training.

 

How Hola Business helps you get started

Hola Business is a 3-part online platform & tool that helps you transform your idea into a successful business model.

Once you have identified an opportunity and have a business idea, Hola Business provides you with the business knowledge you need to succeed in your business. Hola Business will help you set up a solid foundation for your business to grow, teaching you some of the essential skills needed to start and run your business successfully.

12 purpose built modules guide you step-by-step, capturing information as you learn that will automatically populate into a professionally formatted business plan. Having a plan that you developed, understand and can therefore implement effectively is one of the critical factors that can lead to business success.

Hola Business will help you work through and solve the practical challenges of starting a business, ensuring you are prepared for the real world of business, included in the programme is a business simulator, which allows you to practice running a business and get to grips with some of the variables you will face in your own business.

When you invest with Hola Business to help you start your business, you learn about:

  • Personal Goals

  • Cycles of Your Business

  • From Idea to Plan

  • Business Planning

  • Financial Forecasting

  • Understanding Costs

  • Pricing for Profit

  • Financial Scorecard

  • Managing Working Capital

  • Setting up Your Business

  • Getting Finance

  • Marketing for Startups

 

 

Serious about your business?

 

Get step-by-step online training walking you the development of your own business plan with Hola Business.

 

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