Posts

How Do I Start A Small Business?

/in /by

StrategyDriven Starting Your Business Article |Start a small business|How Do I Start A Small BusinessIntroduction

Starting a small business and achieving a reasonable amount of success in the same business requires you to follow quite a few steps. All the budding entrepreneurs and business people understand this phenomenon; thus they make the initial preparation and planning very compact, strong, and full-proof.

Apart from conducting detailed market research, finding out fair clientele, performing surveys, retaining target groups, exploring SEO, and researching public data, which are obviously important factors, one must also remain very adaptable to changing situations. That is the key step towards a successful small business.

How can I start a small business?

1. Preparing a Proper Idea

If you are going to start a small business, an all around preparation of a proper idea is very important. Generally, it includes various factors like; 1. What are the products and services you want to provide to your customers? 2. What will be the market where you want to get into? 3. How will be the market where you want to enter? 4. What kind of better offers can you make for your consumers, than the contributions made by the already existing companies?

You are also required to concentrate on few other components, which are;

  • Why are you trying to launch a small business? What kind of needs will you satisfy? Will it be a personal need or a market need? It is important to have these answers before starting a small business.
  • You can consider opening a franchise for any established company where you will only require to find a proper location and arrange funds for your operations.
  • Having a solid ground of reasoning behind your idea
  • Before starting a small business, you are always required to understand how you are going to make your customers’ lives smoother! And what kind of values are you going to add to their lives? In a nutshell, a proper realization of your target customers is extremely important.

2. Conducting thorough Market Research

Detailed end-to-end market research will help you identify your customers upon which you can further perform competitive analysis in order to understand the various advantages of your small business.

Thorough market research will always lead you towards a realization of your consumer behaviour, customer base, and diverse economic trends. Additionally, you can also collect various demographic information of your customers like age, height, weight, preferences, property value, family members. It will provide you with a mixture of chances and limitations of your small business idea.

Once these are completed, evaluate the following gradually;

  • The Market Demand for your products and services
  • The Market Size of your Small Business.
  • The employment rate and income scope of your customer base!
  • The outreach of your business.
  • The living location of your customers
  • What is the market saturation!
  • The price fixation of your products

3. Writing an Effective Business Plan

A proper business plan is a detailed outline of the structure, functioning, and future growth of your business. An effective plan is chalking down the purpose and goals of your business.

There are two kinds of business plans, which are respectively: Traditional Business Plan and Lean Start-up Plan. The former is a standard and detailed structure, while the latter is an uncommon structure with the summarization of the key topics.

However, the traditional business plan is only widely used and includes;

  • Creating an executive summary mentioning the mission statement, vision, services, employees, leadership team, location, products, of your business
  • Sharing an informative company description with the minute detail of your organization like the business solutions, business services, consumer base, competitive advantages, store location, etc.
  • Conducting a thorough market analysis to understand the target market, industry standpoint, business strengths, market trend, market theme, etc.
  • Describing the legal structure of your business and portraying an organizational chart for everyone
  • Describing the offerings of your services, the product life cycles, intellectual properties as well as the research and development procedures of your business
  • Mentioning the entire marketing and sales strategy with its amendments, financial projections, procedures of retaining customers
  • Clearly mentioning the funding requirements with the specified amount and its typecast. You are also required to inform about the usage specification of the funding along with the future financial plan
  • With the utilization of proper charts and graphs, portraying the present and anticipated income statements, balance sheets, cash flow statements, and capital expenditure budgets, etc.
  • Providing supporting documents by means of appendix including credit histories, permits, resumes, legal documents, reference letters, contracts, pictures of the products, licenses, etc.

4. Accurately Evaluating Your Finances and Funding Your Business

When you think of starting a small business, it is a sure event that there will be an associated cost or price. Therefore, you are required to determine what will be your start-up cost.

Before obtaining sustainable revenue from small business, here are the few steps which you can acquire.

Conducting a Break-Even Analysis – As a business owner, if you can determine the price of conducting a break-even analysis, then in the long run, you can anticipate how profitable your products and services will remain!

Fixed Costs / (Average Price – Variable Costs) = Break-Even Point –

Many entrepreneurs and businessmen apply this method as a means of a tool because it helps them to understand the minimum requirement of their business performance for attaining success. It also helps in determining the production goals.

Break-Even Analysis helps you in;

  • Determining the profitability
  • Obtaining information about fixed rates, variable costs, total costs labour costs, etc.
  • Analysing the data properly

Considering the Funding Options 

The available options of funding for your business can respectively come from;

Business Loans – You can opt for a commercial loan or even a small business loan from Small Business Administration.
Business Grants – There are various kinds of business grants which can be secured and do not require to be paid back like minority-owned business grants, grants for women-owned businesses, government grants, etc.
Investor Funding – many investors can also fund your business
Crowdfunding – Crowdfunding is a widely utilized funding option as it doesn’t engage much risk, however, launching an equity crowdfunding campaign can help you in obtaining many small amounts of money from several crowd-funders.

5. Choose Your Business Structure Wisely

The correct choice of your small business structure is going to influence all your daily operations, taxes, filing, personal liability, and asset management, .Henceforth, choose it wisely so that you can obtain the right balance of your legal protections and advantages.

You can choose from the below-mentioned options;

  • Sole Proprietorship
  • Partnership
  • Limited Liability Company (LLC)
  • Corporation – C Corp
  • Corporation – S Corp
  • Corporation – B Corp
  • Close Corporation
  • Non-profit Corporation
  • Cooperatives.

Other Steps Associated with Starting a Small Business –

Although the above mentioned are the primary steps associated with starting a small business, however, there are also few other steps, which are;

  • Choosing a Proper Business Location
  • Choosing a Business Name
  • Registering Your Business
  • Obtaining Federal and State Tax IDs
  • Applying for Required Licenses and Permits
  • Purchasing an Insurance Policy
  • Opening a Business Bank Account
  • Choosing the Proper Vendors
  • Growing and Developing an Effective Team
  • Advertising and Branding Your Business
  • Promoting and Growing Your Business

Conclusion
Efficiently and carefully following these steps will lead you towards starting your dream small-scale business.

 

About the Author

StrategyDriven Expert Contributor |Akash TripathiAkash Tripathi is a Content Marketing Manager at Top Mobile Tech. It is a blog where I cover all the tips & tricks related to Mobile and more related to tech. Stay connected to the rest of the world with Top Mobile Tech. We bring latest and critical news to your mobile and computer devices.

Is Your 5S Process Missing This Critical Step?

/in /by

StrategyDriven Managing Your Business Article |5S Process|Is Your 5S Process Missing This Critical Step?5S, also known as workplace organization, is a method that’s used in practically every company that implements lean systems. Consisting of a five-step process for organizing work, 5S’s first order of business is called “sort” and entails removing unnecessary items from work areas. For example, obsolete supplies and equipment will be removed to free up space and leave fewer things to organize.

While sorting is a vital first step, there’s a critical issue that often gets overlooked in the process: ensuring a workforce is left with everything it needs to do its job.

Although lean principles imply that a workforce should be provided with the right materials, tools, and information, this step is not formally part of 5S. While some might think this measure goes without saying, assumptions should always be avoided.

To ensure that employees are properly outfitted, ask these questions when assessing a work area:

Are all necessary materials available:

  • When needed?
  • In the right quantity?
  • At the right quality?

Are all required tools available:

  • When needed?
  • In the right quantity?
  • In working condition?

Is all necessary information:

  • Easily available?
  • Accurate?
  • Complete?
  • Understandable?

Obviously, every answer to these questions should be “yes,” or lean efforts will be compromised. While these questions are all important, pay special attention to tool and equipment function. Check whether tools work at all, and be sure to verify:

  • Accuracy: Can the tool maintain its required precision?
  • Safety: Are all safeguards present and functional?
  • Markings: Are tool markings easily accessed and legible?

In addition to equipment function, information is generally a weak link in many operations. Two common examples of information problems include:

  • Blueprints: Are blueprints inaccurate or difficult, if not impossible, to interpret?
  • Work instructions: Are employee directives riddled with incomplete information? Do employees often ask supervisors for clarifications?

Clearly, none of the aforementioned situations are good for productivity, and they’re likely just two of many areas where information might need improvement.

While 5S is powerful, explicitly ensuring that your workforce has everything it needs will take your lean performance to the next level. Provisioning your employees is just one of many overlooked measures that will amp up your business’s performance. With continual improvement of continuous improvement, much can be accomplished!

About the Author

StrategyDriven Expert Contributor | Sean FieldsStrategyDriven Expert Contributor | Michael SandersSean Fields and Michael Sanders are co-authors of Quantum Lean: Taking Lean Systems to the Next Level. They are a network member and the co-founder, respectively, of BeehiveFund, a nonprofit organization that assists small to medium-sized manufacturing and service businesses in areas such as production scheduling, inventory control, and quality-management systems. Learn more at beehivefund.org.

Startup Marketing: Three Ways to Efficiently Market Your Start-Up Company

/in /by

StrategyDriven Marketing and Sales Article |Startup Marketing|3 Best Ways to Market Your Startup Company in 2021Many companies in the United States spend a decent chunk of their funds on marketing. It’s been reported that most U.S. companies spend at least 10% to 12% of their yearly budget on marketing alone. These companies’ kind of marketing tactic is quantity over quality, which means getting as many advertisements done and distributed out into the world as possible.

However, digital start-up companies can’t afford to spend as much as most companies because they usually start with high expenses. But if you want your company off the ground faster than most, you’ll have to spend on marketing, as it is the only way you can increase your clientele. It might be scary to spend thousands of dollars on marketing when you’re just starting. Still, it’s the best way to grow your business, especially during this pandemic. The good thing is that it doesn’t have to be expensive to get some exposure for your company. Here are some cheap marketing strategies you can promote your digital company.

Word-of-Mouth

We want to get this out of the way, as many established companies out there have forgotten one of the most consistent and essential forms of marketing, and that is through word-of-mouth. This form of marketing has always been with us ever since the beginning and but many have forgotten it through the years.

Essentially, word-of-mouth marketing relies much on serving your current clientele and giving them the best service and deals possible. It’s all about producing a brand that many people will talk about in the future. However, due to its random nature (some clients may receive different treatment), this form of marketing can be quite volatile. But there are some ways you can reduce this randomness. One of which is through newsletters.

Newsletters are an excellent tool for digital companies to develop positive relationships with their clients. They are also a great way to advertise new offerings that some clients are looking out to get. It’s also great for stating the problems that your company might have in the beginning. This transparency can help your consumers understand your company’s current situation. At its core, newsletters are among the cheapest ways to develop your brand with your target audience.

Guerilla Marketing

There are many ways to market your company out there in the world, but most require you to be consistent with your strategies. This means spending thousands of funds on marketing every year until you get enough exposure to pay your expenses. However, if you’re planning to introduce your start-up company into the world in the cheapest way possible, then guerilla marketing is for you.

Guerilla marketing is a type of marketing strategy that relies on shock value. It’s centered on unconventional and creative ideas that can promote your company in a meaningful way. If done right, your company can get massive exposure overnight. To start your guerilla marketing campaign, you’re going to need two things: surveys and illustrative tools.

Surveys are meant to gather as much information as possible in your target audience. You want to know how your audience thinks because you wouldn’t want to do this kind of marketing randomly. It might negatively affect how your target audience views your company. Remember that any marketing that relies on shock value is a double-edged sword. However, by having enough information, you’re mitigating the chances that your campaign would backfire on you.

Next up are illustrative tools. Illustrative tools such as Adobe Illustrator can help you make good guerilla marketing advertisements. They’re great for other physical marketing as well, such that require some finesse, such as laser engraving tools. Illustrator tools can help you create your marketing idea into reality, and without it, you’ll be left out in the dust. If you’re not a trained professional with these tools, it’s always good to spend extra funds in hiring one, as they can make or break your guerilla marketing campaign.

Once you’ve got these two things, it’s time to start your campaign. Remember to lower your budget for this campaign because at least if it fails, you’re not going to spend too much. The main principle in guerilla marketing is to get your advertisements as much exposure as possible. This means you’ll have to post your advertisements on the most visited platforms by your target audience or, when it comes to the physical world, an area with a lot of foot traffic. Your goal here is not to promote your products and services. Your primary goal is to represent your company.

Content Marketing

The last on this list is one of the most reliable and consistent ways to market your digital start-up company. Content marketing relies on creating as much content as possible for your company. This includes images, videos, and blogs. As a start-up company, you’d want to start with something cheap and reliable, and that is blogs.

Having a blog on your website can make a difference in gaining exposure for your company. The best part is that you wouldn’t have to spend too much money on it if you have an in-house writer working for your company. You only need to produce one or two articles per day to gain exposure on the internet, especially on search engine sites such as Google. This is the primary way you can expand your reach and gain many other clients you might otherwise not have if you didn’t do content marketing. After establishing your blog, you can start working on videos and images to promote your company to your target audience further.

Marketing can have serious pain points for every start-up company. However, if you have a goal in mind have enough budget, you can make miracles with your marketing strategy. It only takes a singular creative mind in your company to make the marketing strategies in this list work the best way it can.

4 Employee Experience Trends That Defined 2020 and Are Expected to Play a Huge Role in 2021

/in /by

StrategyDriven Managing Your People Article |Employee Experience|4 Employee Experience Trends That Defined 2020 and Are Expected to Play a Huge Role in 2021A whole lot changed in 2020 for everyone. The emergence of a global pandemic has transformed the way we live, interact and work. It has forced many employers to reconceptualize workflows and the minimum number of staff needed to operate. Brand new employee experience trends have emerged, and some of them are showing no signs of losing their grip. Here are some trends that ServiceNow HR expects to have a huge impact in 2021.

1. Working Hours Flexibility

In the past, location has been more of a focal point for employers. But as we move forward in 2021, time is going to be the focus or flexibility. As more and more employees begin to return to in office working, employers will need to offer greater flexibility regarding when employees are expected to work. A 40 hour work week or a 9 to 5 schedule may not be necessary for high performance, productivity and efficiency.

2. Mental Health Support

With all of the separation, and isolation in some cases, that people are experiencing during the COVID-19 pandemic, addressing the mental health of employees cannot be overlooked. The longer this pandemic wears on the more mental health will impact the efficiency and productivity of the workforce. Employers who choose not to address this very serious issue are likely to suffer. Things like extended parental leave and emotional well-being programs will be well received by current employees and even be a priority for potential employees.

3. Workplace Technology

Due to the number of remote workers, employers have had to put some checks and balances in place to monitor the productivity and workflow of employees. Many employees are distrustful of the technology being used to monitor their work. Since remote working and hybrid working are becoming more of the norm, there will need to be some regulations for just how much information is being gathered, how and where it is being stored and who has access to it. We can look forward to state regulations at a minimum about what employee information can and cannot be recorded and how it can be used.

4. Social Stance

Not only do people want to purchase from businesses that espouse their personal beliefs and values, but they also want to work for an employer that is aligned with their values. Most employees are looking for employers to take a position on issues and politics. There is little room for neutrality in this climate, and attempting to remain in the middle may do more harm than good. Whether it’s giving to charities or causes, sponsoring an event or investing in an organization, there are plenty of ways to morally align your business. Undoubtedly, potential employees and even current employees will be watching.

Although 2020 was a history making year of epic proportions, what was put in motion is far from settled and will continue to impact the way we do business for quite some time to come. It’s a good idea to do what you can as an employer to keep up with what’s going on and create an improved employee experience.

Industry Insights: An In-Depth Look Into the 5 Challenges of CNC Machining

/in /by

StrategyDriven Tactical Execution Article |CNC Machining|Industry Insights: An In-Depth Look Into the 5 Challenges of CNC MachiningToday, CNC machining is considered one of the most efficient and important way to handle metal fabrication jobs and tasks in modern industry settings. The reason for this is because the technology itself is a combination of rather sophisticated software programming combined with more advanced mechanical engineering, which produces a system that is well known as CNC or computer numerical control.

Even though the use of CNC castings and machining services is efficient, there are some limits to what the machines can do. While this is true, with the right strategy, these challenges can be overcome.

1. Complex Geometry

Something that is generally accepted in this industry is that what a skilled tradesperson may excel at is something that the average CNC machine may struggle with (the opposite is true, as well). For example, it is a show of skill for tradespeople to work metal with a high level of precision, including cutting circular patterns or straight lines -; but these are tasks that are simple for the average CNC machine. Many Custom CNC Machining Services can get these types of jobs done with ease.

However, with more unique patterns, CNC machines may struggle, while a professional can easily handle the job. This refers to a technical limitation. Also, older CNC machines are operated on just two or three axes, while newer machines have a larger range of movement.

2. Data Processing

Because of the mechanical nature of CNC machines, they can operate within the set boundaries of the hardware. However, the performance could be impacted by the software running the machine. Sometimes, the bottleneck for how quickly CNC machines work is the speed that the computer sends the instructions to the device. An upgrade can help overcome this challenge.

3. Higher Costs

The initial financial cost of purchasing a CNC machine is not cheap. This is especially the case for those who are coming in to the industry with no current equipment to make an upgrade from. Getting started with a CNC machine is challenging because of the significant investment that must be made. However, this cost can be offset by the return provided when the machine is in full operation. This is something to keep in mind when getting started in the industry.

4. Costly Repairs

With any CNC machine, things can break down and the repairs can be expensive. CNC machining requires both software and hardware to work efficiently. If there is a breakdown of these systems, it could require a combination of programming and mechanical expertise to get things running.

5. Expertise Loss

In the past, the ability to handle more complex machining tasks required that engineers and artisans to have a good understanding of metallurgy or other subjects. This can have an indirect benefit on any company because now machines are simplifying the process and reducing the skills that the actual worker has. With CNC machining is taking over, it is making things faster and more efficient; however, this is reducing the schooling and expertise that is required by those who are working in this industry.

As anyone can see, there are countless challenges being faced in the CNC machining industry. Knowing what these are is the first step in overcoming them. Keep the information here in mind to ensure the desired results are achieved and that any potential challenges can be overcome in the industry to help ensure that things continue to move smoothly and efficiently.