The first stage of any competition study is primary research, which entails obtaining data directly from potential customers rather than basing your conclusions on past data. You can use questionnaires, surveys and interviews to learn what consumers want. Crowdfunding: With crowdfunding, you can raise money from a large group of people by soliciting donations or selling equity in your company.

As your small business grows, it’s important to have a scalable business model so that you can accommodate additional customers without incurring additional costs. A scalable business model is one that can be replicated easily to serve more customers without a significant increase in expenses.First things first: before starting your own business, it is important to know what legal structure best suits your needs. Will you operate as a sole proprietorship, a partnership, or incorporate as a limited liability company (LLC)? Answering this question requires research into the particular advantages of each structure for your specific situation. Once you have established the legal structure for your business, it is time to move on to the paperwork involved in starting up. Depending on where you plan to launch your business, there are likely certain permits that must be obtained prior to beginning operations. Additionally, setting up a bank account and registering with local tax authorities should also be taken care of at this stage.

The limited liability company is a popular form for small businesses (LLC). Moreover, t his hybrid organisation provides the legal protections of a corporation while still providing the tax advantages of a partnership. Create a financial plan that outlines your startup costs and projected revenue for the first year—and beyond. Figuring out how much money it will take to get your business off the ground is essential for putting together a financial plan—a key component of any business plan. Make sure to include both one-time and recurring expenses, like equipment, inventory, rent, salaries, and marketing costs. You can also search for businesses that serve the same target market as you but offer different products or services. For example, if you sell women’s clothing, you could partner with a jewelry store or a hair salon. Helpful Resources If you don’t know anyone who is a member, start by joining your local chamber of commerce and the various trade organizations for your industry. Chances are you’ll find a Rotarian in one of these organizations as well. Rotary membership is a great way to start feeling comfortable about wanting to become a business owner. Tell a friend Before you fund your business, you must get an idea of your startup costs. To determine these, make a list of all the physical supplies you need, estimate the cost of any professional services you will require, determine the price of any licenses or permits required to operate and calculate the cost of office space or other real estate. Add in the costs of payroll and benefits, if applicable.An LLP is similar to an LLC but is typically used for licensed business professionals such as an attorney or accountant. These arrangements require a partnership agreement. Workers’ compensation insurance covers medical expenses and income replacement for employees who are injured on the job. Product liability insurance protects against claims that your products caused bodily injury or property damage. Not everyone in business is solely motivated by a desire to make money. Some people are driven by a strong desire to improve the lives of those who live in their neighbourhoods and communities. Some people, for instance, may aspire to live in a society that does not report child malnutrition. Hence, they become business owners and establish a business that facilitates the distribution of nutritious foods to underprivileged children. Just like Henry Ford who had the foresight to change the way people travel. He saw potential in automotive parts becoming mass transportation tools and founded the Ford Motor Company. The motives of starting a business is inspiring and it makes a positive transformation in society. #3. Autonomy and adaptability: Motives Of Starting a Business Utilize existing sources of information, such as census data, to gather information when you do secondary research. The current data may be studied, compiled and analyzed in various ways that are appropriate for your needs but it may not be as detailed as primary research. Conduct a SWOT Analysis

There are many different ways to fund your business—some require considerable effort, while others are easier to obtain. Two categories of funding exist: internal and external. Don’t be shy. Although you may never have had to sell yourself or your products before, you can’t avoid doing so when you own your own business. After you generate momentum and build a strong customer base, then you can rely more on referrals from your happy clients to do the marketing for you. Do your best to hold the line on all the other expenses that simply drain your financial reserves while bringing in little or no additional revenue. If you’re going to eat out, for example, go to less expensive places. Save the expensive meals for your highest-paying customers. Or consider inviting your best customers over as dinner guests in your home.

As your business grows, you’ll need to delegate tasks and put together a team of people who can help you run the day-to-day operations. This might include hiring additional staff, contractors or freelancers. One highly respected community organization is Rotary International, a humanitarian group of business people who dedicate themselves to improving their communities and providing scholarships and other benefits. The advantage of Rotary is that wherever you travel in the world, you are likely to find a local chapter. To become a member of Rotary, you need to be nominated by a current member.

A chapter on teamwork further proved Shaq’s belief in enlisting the right people to advise and guide him. Financial plan: The financial plan is perhaps the core of the business plan because, without money, the business will not move forward. Include a proposed budget in your financial plan along with projected financial statements, such as an income statement, a balance sheet and a statement of cash flows. Usually, five years of projected financial statements are acceptable. This section is also where you should include your funding request if you’re looking for outside funding. You spend money on your business, your customers pay you money, money goes out for this, money comes in for that . . . one glance at your books should remind you that the sheer money aspect of running a business can get complicated. Become an expert. People naturally respect those who know more than they do. By specializing in a particular area of expertise — whether it’s where to dig a new water well, how to scrapbook, or what to do in a financial crisis — you assume the role of a presumed expert, even if you’ve just started your business. What is the first thing you see when you board an aeroplane? What to do to get off of it. When you go to the movies, what do they show you before the movie starts? Where are the exits? The first week of kindergarten, they line up all of the children and teach them how to escape the school in case of a fire. I’ve seen far too many corporate executives who don’t have three or four predefined departure strategies. This has resulted in decreased corporate value and even the destruction of family bonds.”

Don't be intimidated by the thought of launching your own business. You don't need to have a degree in finance or a Masters in Business Administration. All you need is some fundamental knowledge, determination and hard work to make your entrepreneurial aspirations come true. Keep your clients well informed. When clients spend their money on you, they want to be kept apprised of your progress, not only to stay in touch with the project, but also to keep a watchful eye out for problems before they get out of hand. Whether the news is good or bad, your clients and customers appreciate forthrightness and candor. Writing a business plan doesn’t need to be overwhelming—it just takes some thoughtfulness and planning. A basic business plan outlines the key elements and steps necessary to start a successful business.