_Business: First off, why am I using an underscore in the spelling? We’ll get there shortly, but let’s speak about the art of doing _business first. _Business ownership is not for the weak of heart. Finances, a solid _business plan, and competent management are necessary for a successful _business.
Continue reading if you are considering venturing out on your own and starting your own _business.
In the following paragraphs, we are going to talk about:
- How to Get a _Business Off the Ground
- A guide to the composition of a _business plan
- Where to look for funding for your newly established _business
- How to get insurance for your new _business and where to get it
- The best practises for running a _business
- Why on earth am I going to the trouble of spelling the word “_business” as “_business”? (Hint: it has to do with something called Blue Ocean Strategy)
Which is the Most Successful _Business to Begin?
It is not as easy as it might first appear to choose what kind of business to launch. It’s possible that you have an idea for something that you want to do, but the question that really matters is, “What do people want to buy?”
According to The E Myth: Why Most Small _businesses Fail and What To Do About It, written by Michael Gerber, which is my favourite book about _business, the majority of individuals who go into _business do so as a result of something known as a “entrepreneurial fissure.”
Usually, it goes something like this…
You were employed, and it’s safe to assume that you were successful in your field. Perhaps even the best in the entire office, store, or other establishment…
You arrived at work every day and were able to outperform each and every one of your other coworkers. You were on time for work every day, put in a lot of effort, were thanked and praised for your efforts (although this didn’t always happen), and you were completely knowledgeable about how to perform your duties.
After some time had passed, you eventually said to yourself: “I am the one who is responsible for getting everything done around here, while the boss just relaxes and takes in the paychecks. It would be better for me to start my own _business so that I can relax while I’m making money for myself.”
You’ve decided to quit your job and go into _business for yourself in the hopes of creating your own financial security and independence.
You probably went out and purchased all of the most recent and cutting-edge equipment, hired a few of your closest friends, and then immediately got to work on the project.
Things were most likely going pretty well for a period of time as well.
On the other hand, things probably started to get a little bit out of control as time went on.
It’s possible that scheduling appointments with customers wasn’t handled as efficiently as it could have been, or perhaps the level of cleanliness in the office space gradually deteriorated over time.
It’s possible that you’ve come to the conclusion that the friends of yours whom you’ve recruited to work for you as employees aren’t taking the position as seriously as you believe they ought to, or that their performance isn’t up to the standard that you had anticipated from them.
As more time passed, perhaps those relationships even started to show signs of the strain that they were under.
You probably came to the realisation after some time that what you really need is someone who “knows what they’re doing” to run the _business for you, and you probably found someone who was more than happy to do that for you. After that, you probably found someone else who was more than happy to run the _business for you.
However, it appears that things are only going to get worse after you hand over control to someone else for a while.
No matter what you try, it appears that no one can complete the task at the same level of proficiency as you can!
If you do decide to go back to doing everything yourself, it’s only a matter of time before you decide to close the doors for good anyway; and if you do decide to go back to doing everything yourself, it’s only a matter of time before you decide to go back to doing everything yourself. You probably eventually came to the conclusion that you either need to close the doors for good or go back to doing everything yourself.
So, where did we go wrong?
The short answer to your question is that the entrepreneur conflated knowing the “_business behind that technical work” with being knowledgeable about the “technical work of a _business.”
For example, if we are speaking about an auto repair shop, the technical work of the _business includes knowing how to change tyres, change oil, top off fluids, and other similar tasks…
While the _business side of that technical work involves things like managing cash flow, keeping track of inventory, managing human resources, marketing, complying with OSHA safety standards, enforcing cleanliness standards, systems engineering, etc…
Take note of the fact that these two areas of study are completely distinct from one another.
There is a significant difference between being able to repair automobiles and being able to manage a _business that specialises in automobile repair. There is no guarantee that you are familiar with the other simply because you are familiar with the first.
Imagine being asked to play a piece by Mozart when you’ve never taken a single piano lesson in your life and sitting down at the piano.
It is not even possible.
The first thing you need to do is put in the effort to learn how to play the piano, and there is only one way to play the piano in the correct manner.
The same can be said for the _business world.
Recognizing that there is only one proper approach to managing a _business is the first step toward achieving one’s goals in that endeavour.
So, before we get too hung up on what kind of _business to launch, let’s first ensure that your _business satisfies a demand and has a consistent clientele.
In a perfect world, the community you serve would already have a ravenous appetite for your new venture.
The most successful products are those that fulfil a requirement or address a deficiency in the existing market.
When I was a kid, one of my father’s go-to dad jokes was always the following:
It’s better to be the guy who sells the french fries than the guy who sells the deep fryer.
That one sentence contains a great deal of insight and knowledge.
If he wants to make a sale, a salesman who sells deep fryers needs to find a new customer each time. It is extremely unlikely, it’s almost impossible, for him to sell to the same person twice. On the other hand, a salesperson whose primary product is french fries will have a steadily expanding customer base that engages in repeat purchases of french fries.
Obviously, the fries are just a metaphor for something else. The same idea, however, can be applied to other types of consumable products, such as those sold under the categories of bath and body, health and beauty, nutritional supplements, and food; more broadly speaking, this concept can be applied to any type of _business that operates under a subscription model or offers any kind of ongoing service.
Products of this kind will almost invariably perform better than those that can only make a single sale to a given customer.
This is a choice that, regardless of what you decide to do, you should make with your head rather than your heart.
Without a doubt, one of the easiest _businesses to start is an e-Ecommerce _business.
Despite the COVID-19 pandemic, e-commerce continues to be one of the most rapidly expanding industries in the United States and has reached new heights of success.
59% of entrepreneurs who started new _businesses during the pandemic went into e-commerce, according to a recent survey, and of those 59%, 58% reported spending less than 8 hours per week on their _businesses.
The most popular e-commerce solutions platform was Shopify, and frankly, it was easy to see why.
Shopify is a platform that can help entrepreneurs launch an online shopping _business in just one day.
The secret to their success is their app store.
Over 2,400 apps are readily available for use by Shopify customers. The following is a list of some of the things that you can achieve with the help of the Shopify app store:
- Locate the providers.
- Create the front of your shop.
- Make preparations for drop shipping.
- Management of relationships with customers
- Track orders
- Handling the payments
- Interaction with various outside distribution networks (i.e. Amazon & Walmart)
- Offer support to customers through the use of virtual agents.
The opportunities are truly limitless!
Let’s take a more in-depth look at some of the most lucrative small _business models in the e-commerce space, all of which can be established using Shopify as our platform of choice.
The fact that becoming an Amazon merchant is not a simple process is the only significant drawback.
Dropshipping is the e-commerce _business model that comes in at number two on the popularity rankings. When you engage in dropshipping, you advertise a product for sale but do not initially own the product that you are selling.
Following the placement of an order by a customer, you will then purchase the product from the manufacturer, who will then ship the item directly to the customer.
Your profit, just like the profit of any other _business, is calculated by subtracting the amount that the customer paid you for the product from the amount that you paid to the manufacturer. The most important distinction is that you don’t purchase the inventory until after the sale has been made.
This model is especially helpful for new _business owners who may lack the financial resources necessary to purchase large quantities of inventory.
Print-on-Demand is an approach to distribution that primarily applies to intellectual property and is analogous to dropshipping.
Suppose you have a concept for a new shirt in mind.
You can virtually design that shirt using the Print-on-Demand app that you have installed on your Shopify store, and then you can advertise it for sale without ever having to spend a dime.
The Print-on-Demand _business handles the processing of the transaction, prints the shirt, sends it to the customer, and then pays you a commission if the customer buys one of your shirts. Even customer service and returns are taken care of by print-on-demand services.
The fact that this method of doing _business requires so little initial capital is undeniably one of its most attractive selling points.
Intangible works of intellectual property that can be distributed via the internet are referred to as digital products. These things include the following:
- Stock photos (Pro Tip: Shutterstock will buy almost anything)
- Document templates
- Online Courses
- Themes for use in Shopify stores
It is possible to create and ship digital products almost entirely for free, and they have the potential to generate residual passive income. These are two reasons why digital products are so appealing.
How to Determine What Kind of Name Is Right for Your _Business
When selecting a name for your _business, the first thing you should do is check to see if the corresponding web address, or URL, is free. If you already have a suggestion for the name of your _business, feel free to type it in the box below to see if the corresponding URL is available.
If you can find a URL for your website that has .com extension, you will notice a significant boost to the visibility of your site.
Find a name that already has a high monthly search volume but has a low level of competition. This is the most important thing to do. Using the free Keyword Magic tool that can be found on SEMRush.com, you can conduct an analysis of these two metrics.
When you have decided upon a name for your _business -_Business and have registered it with 1st Formations, you are ready to move forward with the process of formally establishing your _business as a corporation.
How to Get a _Business Off the Ground
After you have concluded that there is a real demand for your good or service, you will be able to move forward with starting your _business and carrying out the steps required to do so.
Having said that, this is not a simple endeavour.
In order to accomplish this task in the most effective manner, you will require a comprehensive accounting of each and every conceivable expense in order to accurately predict your cash flow requirements.
To accomplish this, you will need to create a spreadsheet that details all of your anticipated expenditures and places them on a timeline. This timeline should also include an accurate forecast of your future sales.
In _business school, they refer to this document as a cash flow projection, and running a _business without one is analogous to operating a vehicle while keeping your eyes closed while you’re travelling down the highway.
You are able to download cash flow statement templates from within QuickBooks.
On the other hand, if you have little to no experience working with spreadsheets, I strongly advise you to sign up for the free Excel Skills for _business course that is offered through Coursera.
Developing a reliable projection of one’s _business’s future cash needs and keeping it updated is one of the most important aspects of running a successful _business.
The cash flow analysis that you include in your _business plan is also an essential component.
A Guide to the Writing of a _Business Plan
You will be able to answer some of the more difficult questions regarding the “how” behind your _business operations with the assistance of a coherent and detailed _business plan that you write yourself.
Develop a strategy for your _business.
Additionally, it is an important factor to consider when it comes time to persuade others that you are able to put your plans for your _business into action.
The following is a high-level overview of the components that should be included in your _business plan:
Summary for Executives
Your _business plan’s very first page ought to be dedicated to the Executive Summary. Consider this to be your “elevator pitch.” It needs to convey all of the essential information about your __business, including the fundamentals of the financial model that underpins how your _business will make money.
When you have already resolved all of the outstanding issues, it is often simpler to leave the Executive Summary until the end of the process.
Description of the _Business
This section should contain all of the fundamental particulars regarding your _business, including, but not limited to, the following details:
- Please provide your Business’s full name and address.
- The members of management and the specific credentials they each possess
- The organisational framework of your _business (i.e., sole proprietorship, S-corp, etc…)
- The development of the _business over time
The primary objective of this exercise is to acquaint people with the fundamentals.
What are the goals that you have for your _business? Which metrics will you use to measure how successful you have been? Is it important to you to produce a product of a specific quality? Or do you provide a particular level of service? Or to achieve a particular monetary goal?
It is essential to clearly articulate the purpose of your new _business endeavour as soon as possible, regardless of the response you give.
The Goods and the Services
What kinds of goods and services do you provide for customers? Include as many specifics as you can. Give a potential investor an understanding of the reasons why your product or service will be superior to the current market standard.
Research on the market
Who are your typical clients? What are some of their requirements? What do they have in common with one another?
Do the customers of your _business act in a particular manner during certain times of the year and in a different manner during other times? What kind of salary do they receive? What are some of their other noteworthy routines?
All of this information is necessary for determining how to communicate effectively with the audience you are trying to reach.
After you have determined who your customers are, you will need to devise a strategy that is capable of bringing in those customers.
What kinds of different forms of media do they take in? What are their typical patterns of expenditure? When it comes to their purchasing decisions, what factors do they prioritise the most?
Where can I find the financial details of your _business? How much start-up capital do you require? What are your plans for making use of it? What kind of reoccurring costs do you have? How many people will you need to hire, and what kind of wages will you offer them?
First and foremost, at what point do you anticipate making a profit from this endeavour?
How To Obtain A Loan For Your _Business
There is a wide variety of financial institutions that offer loans and can assist you in acquiring capital for the launch of your _business. Let’s take a look at some of the most successful companies in this sector:
Because each of these lending institutions uses its own set of standards to decide whether or not to make a loan available, if at first you don’t succeed, you should keep trying!
Investing in Protection for Your _business through Insurance
In the United States of America, every single _business, regardless of how modest its size, is required to have insurance. To protect yourself against claims made by third parties for property damage, bodily injury, as well as personal and advertising injury, you will, at the very least, require some form of general liability umbrella coverage.
Thimble.com is an industry leader in the provision of insurance to professionals working in small _businesses, including, but not limited to:
- Contractors in the construction industry
- Providers of cleaning services
- Artisans and those who make handicrafts
- Professionals in the fitness industry
- Event organisers
- Photographers and videographers are included here.
- Professionals in the care of pets
- Drone Pilots
- Retail stores
Let’s take a look at some of the most fundamental types of insurance coverage that are offered to owners of small _businesses:
General Liability Umbrella
A general liability umbrella provides you with basic protection against legal claims that may arise as a result of commonplace accidents such as slip-and-fall incidents, flying tools, accidentally damaging a customer’s property, etc…
To boil it all down, the most fundamental kind of insurance coverage that you can purchase for your _business is a general liability umbrella policy. A general liability umbrella is something you need to have if you sell any type of food product, own a _business vehicle, take possession of someone else’s property, or have a physical location that customers can visit.
To sell your wares at local craft fairs, you will almost certainly require some kind of general liability umbrella insurance, even if your enterprise is relatively low-key and consists of nothing more than the sale of homemade crafts.
Insurance for Businesses and Professionals
Consider purchasing at least some level of professional liability insurance as another sound investment. You can protect yourself against claims of financial loss by purchasing professional liability insurance, which is also known as Errors and Omissions (E&O) insurance. These claims can arise as a result of providing or failing to provide professional services in an appropriate manner.
You can think of it as an insurance policy in the event that you mess up while you’re working.
Compensation for Employee Losses
There is one state in the union that does not mandate that _businesses obtain workers’ compensation insurance, and that state is Texas. The expenses that are incurred as a result of injuries and illnesses sustained on the job by employees are covered by workers’ compensation insurance.
_Business Equipment Protection
This kind of insurance is fairly easy to understand on its own. If your _business uses expensive equipment, purchasing insurance for that equipment is a smart move so that you are protected in the event that it is misplaced, stolen, or damaged. Getting insurance is a good idea. Insurance can be purchased for machinery that you own, rent, or use on a loan basis.
Event insurance is a type of short-term liability coverage that protects you against claims for property damage and bodily injury made by third parties, such as event attendees or the event venue. These claims can be made for a variety of reasons, including bodily injury and property damage.
It is highly likely that you will require event insurance if the nature of your _business involves the organisation of any sizeable in-person gathering, whether it be a farmers market, a community festival, or a convention.
Why do I put an underscore in front of the word “_business”?
We are getting closer and closer to solving the puzzle! Why in the name of all that is holy have I been spelling “_business” with an underscore?
The solution is known as Keyword Strategy.
If you want to be successful in _business, it is essential to know what search phrases your potential customers are typing into Google. This will allow you to create content that is centred on those search queries. Then, whenever somebody types a particular string of words into Google, your page will be at the top of the page that displays the search results for those words (SERP).
When I was conducting research on keywords in preparation for writing my upcoming articles, I came across an interesting fact: the term “_business” is searched for over 609,000 times on a monthly basis, but there is very little competition for it.
I am able to rank for this extremely competitive keyword because I spelled the word “_business” with an underscore and included it in the page title, description, URL, headings, meta tags, image titles, anchor text, and content.
I would like to urge each and every one of you to look for opportunities that are comparable!
There is a great tool available at SEMRush called Keyword Magic that can assist in locating opportunities that are analogous.
The process of starting a new _business can be challenging, but it can also be an extremely rewarding adventure. If you do choose to take that risk, be sure to prepare thoroughly and make choices that reflect your maturity level.
A little bit of imagination in your keyword strategy certainly doesn’t hurt either!
Consider enrolling in the “How to Start Your Own _business Specialization” through Coursera, which is being provided by Michigan State University. This course will provide you with additional information about running a _business.