7 Critical Things You Need to Start a Small Business

7 Critical Things You Need to Start a Small Business

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When starting a small business, there are several things you will need right out of the gate. Without them, your business will be just like many others who start off on the wrong foot. It will fail within five years and may end up costing you more money in the long run than it ever made you.

Here are seven critical things you need to start a small business.

1. You Need Goals

Why do you want to start a business? Hopefully, it is not just to make money, because often that is not enough motivation. Do you love what you do? Do you want to fulfill a specific need? What is your primary goal with your business?

Besides this big primary goal, you should have financial goals and business goals as well. How much money do you want to make, and by when? What sales figures are you hoping to hit in the short and long term? Once you have set your goals, you can start developing a road map to reach them.

2. You Need A Plan

The first thing you need to start a small business is a business plan. This plan comes in three parts, the same three parts as your business.

  • Production Plan: How are you going to acquire or produce the product or service you are selling? This is a critical portion of your idea. How will you keep up if you are suddenly in high demand? The answer is your production plan.
  • Distribution Plan: How will you get your product or service from you, the provider, to your customer? This is called distribution, and it is critical that you get it right. If you can’t get your goods to the customer, and quickly, they will abandon you in favor of your competition.
  • Marketing Plan: How will people find out about your product or service? Where will they hear about it? This is all related to your marketing and advertising efforts.

Once you have a business plan in place, you can move forward with other steps.

3. You Need Money

The reason you need a plan and goals first? Because you will also need money, and the way you are going to convince lenders to give you a loan or investors to invest in you and your business is by having goals and a plan that they can see are viable. Your goals need to be realistic, but they also need to align with the money you say you need.

Also remember that others will not invest in you unless you are investing in yourself. You need to put up a great deal of your own money to get others to also put up their money to support you. This is something you need to be able to demonstrate. There are a few primary sources for business money.

  • Your investment: This is the money you invest in your own business, whether from savings, a personal loan, or leveraging your own assets and property.
  • Private Investors: These are people who usually put money into your business in exchange for a percentage of your profits or a return later on.
  • Business Loans: There are a variety of loans from short-term bank loans and lines of credit to Small Business Administration (SBA) loans that are usually for larger amounts and longer terms.
  • Grants: In some cases, you can get a grant, money you do not have to pay back, to start your business. These are rare, and only available in some specific instances.

Whatever the source, you will need money to start your business.

4. You Need a Website

In today’s modern world, every business has a website, and for good reason. This is where you reach your customers and communicate with them, and often where you sell your products and services, or at least one of the places you sell them.

This needs to be your own domain, well designed, fast, and mobile responsive. If you don’t have the skills to create one on your own, you need to hire someone. Don’t settle for a substandard site, as this is often the first impression a customer gets of you and your business.

5. You Need a Phone

Yes, it is a digital world, but often customers want to reach out and get in touch with someone in person. One of the easiest ways to do this is with a phone system. This does not have to be something that breaks the bank. Small business VoIP systems are common, reliable, and inexpensive.

Get a good system that can grow with you when you are small so that you don’t have to switch to a new one when you are growing and have less time for such efforts.

6. You Need Ambassadors

No one person knows enough people to sell enough products or service to survive. You need others who spread the word for you. This can be other business colleagues, friends and family, and as you move forward, satisfied customers.

These ambassadors will be your lifeblood, sharing your message with everyone they know. As their friends tell their friends, your business will grow by leaps and bounds.

7. You Need Fulfilment

There are two people you need to satisfy with your business. You need to be satisfied with what you are doing, while at the same time be driving to get better. You also need to be offering your customers a sense of fulfillment.

This means whatever product or service you are selling needs to be meeting their needs or satisfying their wants. If you are not doing this, the customer will not come back, and will probably go elsewhere.

Conclusion

These seven things are just the tip of the iceberg, but they are critical things you need when you are starting a small business. Take these, make your plan, and go forth and do the wonderful things you were destined to do by starting your own small business.

Did you find this article helpful? Leave a comment with your thoughts or questions in the section below.

Donald Phillips

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