3 Success Steps for Business
New businesses are becoming popular by demand in the United States (U.S.). A small business can fall under different categories. Some people call it self-employment while others call it entrepreneurship. Two important facts to know about a small business is that it is privately owned and it can have one or many owners. According to a 2013 Forbes article, there were “almost 28 million small businesses in the US.” (Nazar, J. (2013). www.forbes.com). Small business owners have great benefits.
For example, you are able to choose the hours you want to work, type of customers to work with, and your profit. To determine what kind of business you want to start will depend on factors such as the product or service being offered, your business location, how many employees you want to have in business, your legal structure, and more. Provided below are some business steps to take action on to help see successful results.
Step One: Business Ideas
One important step towards success in business is deciding a type of business you will enjoy. People are starting all types of businesses every day. You can start by writing down different ideas. What do you like to help people with? Think of your favorite things you like to do daily. What is your passion? Most business owners turn their passion into money. A passion is something that you love so much, you will do it for free.
For example, an online business app developer may work days and weeks developing a new app for their users. Someone who has a passion for developing apps for users will want to then decide what type of apps they want to create, how will they test the user app for cyber security and safety. Ideas such as will it be game apps, business apps, fitness apps can help determine what you will enjoy doing in your business. Take your time and brainstorm on different business ideas that you will enjoy. You may not put your all in it if you start a business in something that you don’t have an interest in.
Step Two: Legal Structure
Your next step towards success in business is choosing the proper business structure. Your business structure falls under four main categories. They are Sole proprietorship, partnership, Limited Liability Company, and Corporation. A sole proprietorship is one of the simplest forms to start because is considered low-risk for owners who may be limited in start-up funds or resources.
Sole proprietors are responsible for the assets and liabilities of the company. A partnership can be created when two or more people decide to start a business together. Normally, partnerships are formed when two or more decide on a mutual business idea and want to try it out together. Based on if they form a limited partnership (LP) or limited liability partnership (LLP) will determine which partner has limited control over the company operations, profits, assets, and liabilities.
Limited Liability Company (LLC) is a legal structure that protects all owners legally. Your personal assets will be safe if you ever had to file bankruptcy or from lawsuits. A sole proprietor or partners can start an LLC. Legal documentation such as an Articles of Corporation will be required when filing for an LLC.
The last type of business structure is becoming a Corporation. This is when the business entity is not tied in with the owners. The cost of building a corporation is much higher but have more advantages. Corporations only have to “pay income tax on their profits.” (Choose a Business Structure. www.sba.gov).
Step Three: Create a Business Plan
A business plan is what makes your business solid. If you fail to plan then you plan to fail. Business plans help you plan for success in your business. It helps you recognize the strengths, weaknesses, opportunities, and threats in a business. Important topics in a business plan include information on start-up costs, future business goals, how you will operate your business, marketing, and sales promotions.
Start-up costs help a business recognize how much money it will take to get your business off the ground and running. Knowing this ahead of time will give you the opportunity to search or investors, grants, small business loans and other financial help. Future business goals are also discussed in your business plan to help recognize how many employees you will want to hire within two to five years or upgrading all of your products to meet current market trends.
Some businesses go out of business due to the lack of change to meet market demand. For example, there was a couple of movie rental companies that people used to rent VHS and DVD’s went out of business due to lack of change. They were unwilling to change their business model to adjust to modern day trends. People stopped going to those movie rental companies and started ordering online streaming companies like Netflix. It is important to understand change is important.
Managing and operating your business is what will determine the lifespan of your business. Organizational tasks will need to be added in order to help plan for expansion, hiring employees and daily operational tasks. Marketing and sales promotions will share details on how you will get the word out about your business. There are many marketing techniques to spread the word. The marketing plan will break down the cost of each method and the target audience you desire to reach.
There are local stores, online stores and so many other new businesses launching every day. People are exercising their rights to work for themselves by offering a product or service in need. Most people want to start a business but lack knowledge on how to begin and maintain a success. Based on the knowledge and action steps taken will determine by results for any new business owner.
Small and medium-sized businesses are great ways to start for people with specific limitations. Positive results occur when people follow success steps for business. The Small Business Administration provides valuable information to guide you towards success as well. This article is for informational purposes only.
Nazar, J. (2013). 16 Surprising Statistics About Small Businesses.
SBA.Gov website gives information for small businesses. https://www.sba.gov/business-guide/launch/choose-business-structure-types-chart