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- On November 15, 2016
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Many entrepreneurs in the US have grown up with the knowledge – if you can dream it, you can do it. Not all successful businesses have always started with a ton of cash or funding — there are thousands of cases of entrepreneurs making it big with little money or resources in the very beginning. (Remember – both Apple and Microsoft began in home garages).
While starting a small business with little or no capital is not impossible, there are steps to making sure the business idea is viable. According to Smallbiztrends.com, the following are a few of the steps every entrepreneur needs to take while building their dream business.
- Keep a Day Job – Unless you are plush with cash, keeping your day job is essential when first building a small business. Chasing your dream and becoming your own boss can take a while and money can be hard to get at first. Relish the security of your current job while thinking about and planning out your future as an entrepreneur.
- Work on a Business Plan – Whether or not you decide to outline your business idea in a formal plan or just think through the idea, “Fleshing out your business idea …is very critical to the success of your venture,” reports Smallbiztrends. You need to think about the uniqueness of the idea. Research the competition and decide, who is the target audience – and is this an idea they will truly need. Start to fill in the details to determine the feasibility of the small business you wish to start.
- Understand the Market Challenges – Before starting up any business, you need to understand the challenges in the market. You can do this through research as well as talking to other small business owners who might be in similar fields. Smallbiztrends says once you identify the challenges, then you need to address how to conquer or deal with any roadblocks or issues.
- Know Your Capital Needs/Crowdfunding – Good business ideas aside – having the cash to start up and operate a business is a reality. However, understanding your capital needs is something that should be carefully assessed. According to Smallbiztrends, “Without a clear idea (of capital needs), you run the risk of coming up with an unrealistic valuation of your business, which will put off investors and get your loan application rejected.” Upshot: start working on a budget to assess your needs before going out there to raise funds and get a loan. Once you understand your needs, you can then look at the many different options to raise money such as crowdfunding. Kickstarter and other websites dedicated to crowdfunding will help you determine if that route is right for you.
- Network – Today there are many options to get your idea out there and find other professionals who might be interested in your business idea. Smallbiztrends recommends trade shows, online forums, social networking sites and more to help with networking efforts. These often result in connections that can help your business develop and grow.
- Trial and Feedback – If you are building an online service – provide a free beta. If you are developing a product – distribute free samples. In other words, have a way to test your business idea and procure feedback. “A pilot will give you the confidence you need to take your idea to the next level and mitigate risk,” says Smallbiztrends. In addition, getting expert as well as customer advice on the feasibility of your business idea, is invaluable.
- Working Capital Loan – Companies like National Business Helpers are able to offer unsecured & unrestricted small business financing directly in your business bank account within 24 hours of acceptance.