5 important tips for small business beginners
Sri Lanka is starting to embrace the values of entrepreneurship which has led to many people aspiring to and then starting their own businesses. Most these business at the start are either bootstrapped or started with very minimum capital. These maybe in various industries and with different numbers of staff but what they all have in common is someone that is willing to pursue their passion and build a business. In this journey there are things that could help, so we will be looking at 5 important tips for small business beginners.
1. Choosing an Idea for your business
Your idea is your spark of brilliance, that one idea you can see becoming a massive business with the right commitment and application. However, not every idea can be implemented successfully. Sometimes the timing does not fit, other times market has yet to embrace it or mature up to your idea. At a starting point, you need to ensure that your business produces a service or a product that is validated by the market. This is a crucial step that many businesses often overlook. But without preparation you’re only going to be wasting your resources and time. So each idea you have, before you completely decide to implement as a business, ensure that it’s an idea that will be accepted by the market and can scale to higher echelons.
2. Start Planning
As soon as you find your point of validation, start planning for the operation of your business immediately. Figure out what your early expenses would be. Think about if you want to hire people to continue or you want to try it on your own at the start. Plan your legal obligations of incorporation and opening accounts. If you think its going to take 6 months to make your idea a profitable venture plan for double that, even triple that. Because running a business is very fickle in nature and if you have not planned ahead you may end up either not having the resources or disappointed because you were not ready.
3. Calculating capital and estimating profit
A part of your planning should always be the fiscal side. Figure out how much capital you would need to invest and how would you expect to raise your revenue and profits over a period of time. Always make a pre-planned estimate and ensure that you set your targets at achievable consistent levels. Remember, if you are onboarding investors open up a dialogue with them regarding their expectations and plan for that as well.
4. Conduct marketing research
Research is often overlooked but done right it will provide you with a competitive edge and a chance to corner the market. Analyze any potential competitors and find what they can improve on and start by focusing on your strengths and their weaknesses. Make it your mission to always be on the lookout for market research and to adjust your strategy to fit the market.
5. Find money to start
If you are a small business owner you know how often you need liquidity in cash to cover expenses and keep your business functioning especially on the early days. After planning, you will know how much capital you need to raise. Now there are a number of financial options for you, but if you were to start off small and try and test the waters and really only looking for financing options to cover a specific need, you need to look towards cash loans as a viable option.
Cashwagon.lk provides online loans without a complex process with complete transparency and ease of access. When you want to raise funds quickly and without hassle to run your business, obtaining a loan from Cashwagon will be much easier for you than looking towards any other sources.