A quality small business must start from a quality idea. Of course, for those of you who want to start a business, you can be sure that you have chosen that big idea. However, in starting a small business, of course, you have to turn this idea into real action. This is where many novice businessmen feel overwhelmed, this happens because the steps taken are not planned properly.
Like any other big goal, starting and starting a small or large business does require a lot of effort. However, the big goal will feel easier if you do the planning by breaking it down into small, structured steps. To guide you in realizing your big idea, here are simple steps to Start A Small Business.
Tips for Starting a Small Business
Make a Simple Business Plan
The key to successful small businesses is their ability to make big things simple and their ability to keep costs down. The cost, in this case, is not only in the form of money but also time. Many novice businessmen spend their time compiling a detailed business plan up to volumes.
For those who are just starting out and starting a small business, this is not necessary. Because a detailed business plan will only be needed when you need investors. That for those of you who are just starting a small business, make a business plan with just one or two pages. That way your time and thoughts are not wasted because of this.
Make a Budget Plan
Planning a budget in starting a small capital business is the most central aspect. Because this will determine whether or not your business will continue. Start by identifying the source of the funds first. If the source of funds comes from your personal finances, then make realistic budgeting of your income and make a backup plan in case the funds run out at any time.
For example, after calculating your daily expenses, you can finally set aside 20% of your income. Now! If it’s time for you to realize the plan, don’t let the funding you spend exceed the plan. The steps above are very important for you to do because this will determine how long the period of time a small business will be able to survive when the business being run has not made a profit.
Choose the Business Entity Form of Your Business
Determining the choice of the type of business entity for your business is quite important, this is closely related to the license and legal protection of your small start-up business. Because without a business entity, generally interesting ideas from your business can be easily stolen by others. Legalizing a business does cost money, sometimes the fees charged are also quite large. Therefore, the selection of this business entity must also pay attention to the budget you have.
Save Your Small Business Expenses
In the previous stage you have carried out the budgeting process, this stage is actually related to the action of the budgeting. For example, in your plan, you have budgeted expenses to buy a tool with an estimated price of 2 million.
It turns out, in the implementation process you can get a tool at a price of 1.8 million with the same quality, so try to get the tool. This step can save expenses, so you can allocate the rest for other purposes or put it as a reserve fund.
Now you can follow the steps of Starting A Small Business without spending a lot of money and time. This is a fantastic way to test the viability of your small business before wasting all your time and money on other unproven ideas.