How to Start a Business: Step-by-Step

Credit: Startup optimism image via Shutterstock

So you want to start your own business? You’re not alone. Nearly half of all Americans say they want to become entrepreneurs. Running a small business isn’t without its challenges, but being your own boss and doing what you love can be incredibly rewarding. If you’re thinking of launching a startup, this step-by-step guide will walk you through all you need to know, from coming up with an idea to building your brand.

Brainstorm ideas

Every new business starts with an idea. Maybe there’s something you’re really knowledgeable and passionate about, or perhaps you think you’ve found a way to fill a gap in the marketplace. Come up with a list of businesses you could see yourself starting. You could start a home-based business like an event-planning company or child care service, or maybe an Internet business like app development or online tutoring is more your speed. Wherever your interests lie, it’s almost guaranteed that there’s a way to turn it into a business.

Another option is to start a franchise of an established company. If you choose to go this route, a lot of the legwork has been done for you. The concept, brand following and business model are already in place; all you need is a good location and the means to fund your operation.

When you’re thinking of ideas, you’ll also want to consider your business model — the logistics of where you’ll be doing business and how you’ll make money. This article on Startup Nation outlines a few different types of business models with the pros and cons of each.

Once you’ve narrowed your list of ideas down to one or two, do a quick search for existing companies in your chosen industry. Learn what the current brand leaders are doing and figure out how you can do it better. If you think your business can deliver something other companies don’t (or deliver the same thing, but faster and cheaper), you’ve got a solid idea and are ready to create a business plan.

Build a business plan

Now that you have your idea in place, there are a few important questions you need to ask yourself. What is the purpose of your business? Who are you selling to? What are your end goals? How will you finance your startup costs? All of these questions can be answered in a well-written business plan.

A business plan helps you figure out where your company is going, how it will overcome any potential difficulties, and what you need to sustain it. A full guide to writing your plan can be found here, but these are the basic sections you will need to cover:

• What your business is about and how you will accomplish your goals.
• Your extended goals and how you will fill your market’s needs.
• Your research on your target market.
• Organization and management of your company.
• Your service or product line, including copyright information and R & D activities.
• Strategies for market penetration and growth.
• Estimated costs and funding request (if you need financial assistance).

If you’re feeling a little overwhelmed at the thought of writing your business plan, there are plenty of online resources and sample plans for you to use as a reference. This may seem like a daunting task, but it’s a critical step to getting your company off the ground.

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Originally published on  Business News Daily June 26, 2013 09:24am ET

Written by Nicole Fallon, Business News Daily Assistant Editor

 

BENEFITS OF SOCIAL MEDIA IN MARKETING

Marketing isn’t somebody’s responsibility; Marketing is everybody’s responsibility (Jack Welch, CEO, 1981-2001, General Electronic Co.)

Many enterprises have been exploiting the opportunities inherent in the use of social media which has become an integral part of human lives and one of the powerful marketing tools over the years. Incredibly, a proportion (though small) of business owners is yet to find reasons to tap the many opportunities in its use as a report from Social Media Examiner (one of the world’s top 5 business blogs rated by AdAge and Technorati) posits the statistics.

Source: http://www.socialmediaexaminer.com (Social Media Marketing Industry 2013)

Social media marketing is a trend in which social media tools/channels are being used to reach out to target customers easily, instantly and effectively. It can be used to promote your enterprise and market your products and services at very little or no cost while establishing a wide reach.

Social media is characterized by the ability to; mass communicate and mass market (present your products and services to large communities and individuals that could be interested in your products and/ services). The viral quality of social media makes it an appealing tool for businesses to market products and services (Ziang and Gretzel, 2010).

There is quite a number of social media sites and each has its own uniqueness and features. Unarguably, the first social media site that comes to mind is Facebook, followed by Twitter which are among the most popular and widely used channels for networking, but are far from being the only ones used especially in marketing. Others that have been identified include YouTube, Blogs, LinkedIn, Google+, Pinterest, Photo Sharing sites (e.g. Instagram), Forums, Podcasting, Social Bookmarking (delicious), Geo-location (e.g. Foursquare), Q&A sites (e.g. Groupon )and Daily deals(e.g. Quora).

But despite the many benefits associated with the use of social media as a marketing tool as illustrated by Social Media Examiner in the diagram below, many marketers and entrepreneurs are still struggling to integrate social media into their marketing and marketing strategies, while those who have done so are yet to consolidate their efforts.

Source: http://www.socialmediaexaminer.com (Social Media Marketing Industry 2013)

However, among many questions being asked by entrepreneurs and marketing personnel interested in the use of social media, these few questions stand out.

1. What is the best social media tool?
2. Which most effective methods can I employ to engage my target audience?
3. How do I create a social strategy?

Source: http://www.socialmediaexaminer.com (Social Media Marketing Industry 2013)

 

Facebook (established in 2004) still remains the most widely used medium for networking and marketing with more than 1 billion active monthly users (Social Media Marketing Statistics, MDG Advertising), majority between 18 and 25 years of age, followed by Twitter, LinkedIn, Blog and YouTube. This trend has been established since 2012.

For enterprises that link up with customers directly (B2C) or with other forms of businesses (B2B), you may want to consider the charts below to prioritize the social platforms to employ.

Source: http://www.socialmediaexaminer.com (Social Media Marketing Industry 2013)

This shows that people who buy direct products take passion largely in Facebook compared to LinkedIn that measures up with Facebook for business –to-business transactions. However, this does not mean a marketer or entrepreneur should ignore other useful social platforms, as  Social media examiner reveals that marketers plan to increase their use of YouTube by 69%, Blogging by 66%, and Twitter by 64% irrespective of their nature of business.

According to one of the presentations by CTA:

• Social Media must be ENGAGING (to build relationships, trust and loyalty).
• Social media strategies are based on creating lasting relationships with customers and not just providing information on your products and services
• Social media creates value that can lead to financial results in the future but not necessarily immediate dollars and cents.
• Its Return on Investment is harder to measure (Friends, Followers etc do not equate to money).

Take time to research the best tools and strategy for your enterprise to achieve your marketing goal.