Different Stages in the Process of Starting a New Business
Every business starts out as an idea. This idea usually involves the invention of a new product, or revolves around a better way of making and marketing an existing one. While many would argue that the idea stage is not a stage at all, it is actually a turning point, as business adviser Mike Pendrith points out. After this, you as a business builder must refine this idea into a money-making reality.
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Idea Researching
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In this stage, you are researching your idea. The object of your research is to find out who is marketing the same product or service in your area, and how successful the marketer has been. You can accomplish this by a Google search on the Internet, launching a test-marketing campaign, or conducting surveys. Also, you are attempting to find what the level of interest is in the products (or services) you wish to market.
As part of the initial research process, it is important to consider the legal requirements of selling your product or service. According to the Biz Ed website, examine the legal ramifications of your business. Know the tax laws governing your business. If insurance is a requirement, prepare to budget for it. Also, be aware of any safety laws governing you as an employer.
Business Plan Formulation
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You must write a business plan. As Pendrith points out, this is crucial if you want funding, such as a small business loan or grant, or if you wish to lease a building. At this stage, Pendrith advises, you need to consult with an attorney or business adviser for assistance.
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Financial Planning
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Financial planning involves thinking about the financial costs of starting and maintaining your business. According to the Biz Ed website, you should consider such issues as the costs of running the business; the prices you wish to charge your customers; cash flow control; and how you wish to set up financial reserves in case of an emergency or an event causing significant loss to the business.
Advertising Campaign
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Decide how you will market your product. Consider your budget and your target audience. Make up business cards with your logo on it, your name and the name of your business. Make sure that they are of the most professional quality. Utilizing print, the newspaper, the Internet, radio or TV is also wise, considering, of course, the size of your advertising budget.
Preparing for Launch
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Advertise for employees. This also requires adequate planning. Think about what you look for in an employee. Be specific about the requisite skills and experience you are seeking. Then begin requesting resumes and setting up interviews, making hiring decisions based on the standards you have set.
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References
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