Trying to start a business in the present situation when the world is reeling under the effects of the Covid19 pandemic is indeed a daunting task for any entrepreneur, but it was never easier earlier. Indeed, it is an uphill task to start a business when the economy is in the doldrums, and entrepreneurs must have the courage and passion for taking up the challenge.
Regardless of the economic condition, arranging for finances to start up a business is the biggest hurdle for entrepreneurs, but having a solid business plan can make the task slightly easy. The business plan reveals the business details and provides the road map for revenue generation based on realistic cash projections that can create a healthy bottom line. It becomes easy to convince lenders to put in their money for a winning cause, explains Hani Zeini.
To take off your business from the ground, follow the steps described in this article.
Search for a lender first, says Hani Zeini
Borrowing money is the first step to start any business, even if you contribute something from your savings. Approach the banks, credit unions, and the financial institutions known for supporting businesses and present your business plan to them for determining your eligibility for a loan.
Hani Zeini recommends seeking help from some reliable and experienced entrepreneur who is willing to share his or her experience and provide guidance after vetting your business plan. It will make the hard work easy as the business plan would be more attractive and acceptable to lenders. Besides estimating the business finances for a startup, create a back plan to cover for any shortfall. Include your personal finances too in the backup plan. Having a cash reserve for at least a year will help to avoid missed loan payments.
Make a marketing plan
Your business plan should include steps explaining how your products and services can reach the market. Create a marketing plan that identifies the products to sell, price, customer groups, and business promotion techniques. Start by focusing on a niche customer segment that supports your strategic marketing endeavors, advises Hani Zeini.
Create buying personas based on the market demographics like age, gender, career, group, geographical location, etc. Think about ways of enhancing the product appeal to attract new customers through customized offerings. When customers derive more value from the products, they remain committed to the brand in the long run.
Take a leaf out from your competitor’s book by focusing on the things that they are doing right so that you can adapt it with necessary modifications for assured returns.
Take baby steps first
Trying to start your business with a blast is never a good idea as it can become challenging to control the pace and throw it off the tracks. Instead, start on a low key so that the expenses are low and you get time to stabilize things and gradually step up the activities to support the pace of growth in a balanced manner.
A modest start with minimal resources will ensure that your business not only gets off the ground but stays afloat and supports growth.