In the following article you will learn about some of the essential guidelines you will need to create a business. Find below the 10 Basic rules for starting a business.
As entrepreneurs, we would like to find a manual that will explain step by step what we must do to materialize our ideas and of course start making money as soon as possible. However, despite the fact that there are many texts that promise to give you the magic formula, the reality is that there is not one.
Ideas are different, markets vary, there are economies with better opportunities, and there are times when one idea might work but another might not. There are too many variables that prevent creating a perfect formula for each business idea.
On the other hand, the success of a business is built over time. This is because you need to gain the trust of your customers, which cannot be done overnight.
However, there are some general guidelines that every entrepreneur should take into account when creating a company.
Basic rules for starting a business.
Passion and money only represent a small percentage in your path as an entrepreneur. Therefore, it is necessary that you take into account the following guidelines. Regardless of what you sell, product or service, you will always be one step ahead if you follow the following basic rules for starting a business.
1. Make a business plan.
I’m not talking about the 150-page document that business schools usually teach. I mean more specifically that you must achieve goals, but to achieve them you must establish them. That is why it is convenient to write a small business plan that outlines the route and the objectives that you want to achieve along the way.
As mentioned above, it is not necessary to make a treaty. A couple of sheets will be enough to establish what you want to do, who you want to offer it to, what resources you will need and how long it will take you to execute your idea.
In the end, it is the planning that matters, not the plan. Developing a business plan forces you to think about the fundamentals of your idea: your market, competition, industry, and your strategic position. Find below some articles that can help you:
2. Choose a product or service that is truly useful and means something to you.
Creating a company is a process that will require great sacrifices. So if you enter the arena with the sole intention of making a quick buck, you’re going to give up at the first hurdle.
Therefore, it is important to create something that benefits society and has real utility. A product or service that really matters to you and has meaning to you. If so, you’ll be in a much better position to find customers, connect with them, and convert them into loyal fans of your brand.
3. It is easier to gain part of an existing market than to create a new one.
Creating a new market is more complex, time consuming and expensive. Although it is believed to be the perfect scenario, a new market must be tested and for that you will need time and a lot of money. If you think about it, Instagram was not the first social network, Google was not the first search engine, nor was the iPhone the first smartphone.
It is thought that entering a competitive market is very dangerous. However, it is proven that this market works and you can serve it with your products and services. Remember that you don’t need to cover the entire market to make it worthwhile, a small portion could mean big profits. Otherwise, Apple and Samsung would be the only providers of mobile phones, or Coca Cola and Pepsi the only drinks.
4. Be faithful and sincere with your clients.
Another of the basic rules for starting a business is to be absolutely faithful and sincere with your customers, even if it costs you to lose some sales. If you want loyal customers you must set an example. Don’t promise what you can’t deliver. Do not lie or exaggerate the benefits of your products to increase sales. If you are going to exaggerate, let it be in the quality of your product and not in marketing.
Remember that word of mouth marketing has always been one of the main sources of customer acquisition for small businesses. Much more with the power of the Internet and social networks.
5. Clearly define your target market.
Analyze the characteristics of your customers so that you understand exactly who buys from you. The more detailed your customer description, the better.
Having a clear target market allows you to be much more effective and efficient in both your product development and marketing practices.
6. The internet is your best friend.
No matter what you sell or to whom, chances are your customers will find you on the web. They can ask Siri, Alexa or Google. Likewise, they can find you on their social networks.
Tools like Facebook and Instagram are wonderful ways to get your message across and reach an international audience. Social networks are not only more profitable than traditional advertising, but also offer great opportunities to connect with your potential customers through micro-segmentation.
You will be able to make yourself known, strengthen your brand and sell. Additionally, the feedback you receive on social media can be invaluable, especially when your business is just getting started.
Listen to these comments as they will help you understand what you are doing right and wrong. In this way you can improve your products, offer a better service and improve your marketing campaigns.
7. Look for products that give you a good profit margin.
If the difference between your cost and selling prices is too low, you will have a hard time growing the business. When profit margins are too low, you won’t have enough money to hire employees, pay for raw materials, or advertising. Expanding requires money and if your margins are too low, your hands are tied.
8. Study your competition.
Don’t make the mistake of focusing solely on your product and forgetting about the competition. It is not about fearing it or wanting to eliminate them. It’s just good to study them to learn how to do things better and even make some mistakes. A quick internet search can give you a lot of useful information about what your rivals are doing, how they are doing it, and for how much.
But be careful, it is one thing to see them to know what they are doing and how they project themselves; and quite another is to observe them so much that you see nothing else.
9. Don’t spend everything you earn.
It is common that you want to celebrate the first triumphs, after all you deserve it. However, you must plan for the future and this implies saving money to be able to solve emergencies or reinvest. Creating a company implies making mistakes and worse still, having bad luck. It is better to have some reserves to keep you afloat.
10. Enjoy what you do.
If you really love and believe in what you do, others will notice and share your enthusiasm. If you don’t enjoy what you do and aren’t proud to show your family and friends what you do, don’t do it.
Even if you are making money, sooner or later you will leave it. To find success you must be absolutely committed to what you do.
And remember, if you are really interested in creating your own business, you can read our book “How to create a company while working: Discover how to manage your time, manage your money and motivate yourself while creating a company and working for another” , where you will find all the information you need to found your own company, without having to leave your job.
