The Entrepreneurial Mindset: How to Start Your Own Business
You’ve got a great idea for a business and you’re ready to get out there and change the world. But not so fast. If you’re not careful, you could run into some major trouble.
The Bureau of Labor Statistics shows that 20% of small businesses fold within the first year of operation.
To avoid becoming another statistic, you’ll need to take it slow and easy, backing up your entrepreneurial mindset with the data that can help you secure funding.
Ready to get started and make your dreams a reality? Keep reading to find out what you’ll need to do!
Research the Industry
One of the top reasons why so many small business owners struggle is that there’s simply not a need for their particular company in their industry of choice. Overcrowding, fatigue, and lack of a sustainable audience are three key factors that can topple even the most determined of entrepreneurs.
To make sure you don’t fall into these same pitfalls, you should always conduct market research before starting a business.
This research should focus on projected industry growth, audience size and demographics, and the top players in the industry.
To further elaborate on that last bit, you’ll want to examine what pain points the top companies of a given industry aren’t able to address. By picking up their slack, you can swoop in and stand out in the market.
Create a Business Plan
With your business plan as a reference tool, you’ll now want to put together a professional business plan. This is the document you’ll use to secure financing and gain startup capital, so make sure it looks professional.
If you’ve never put together a business plan, the task can seek daunting. But truth be told, it’s quite formulaic. The Small Business Administration has a great guide with tips on how to format your business plan and what to include.
Generally, a business plan consists of the following:
- An executive summary
- Your market research
- Funding goals
- Projected milestones
- Administrative information
Be as specific as possible when writing your business plan. Use data whenever possible, particularly when discussing your funding goals and business timeline. Show that you’re thinking about the next steps and have a growth mindset.
It’s a lot to handle. If it feels like too much pressure on your shoulders, you can also outsource this section to a company that aids businesses throughout the formation process. Check out Pacific Accounting Group for more info on how they can help.
Now comes the toughest part of starting a business from home: Getting the money to turn your business plan into a reality!
There are several ways to secure funding. The most common is to secure a business loan.
There are three main types of business loans: Microloans, which generally cover up to $50,000 or so, as well as 7(a) loans, and 504 loans.
The details of the last two can get complicated, so we suggest going over the details with your partners to find the best type of loan.
As you start pitching, you’re going to hear the word ‘no’ a lot. That’s okay. Keep your chin up and don’t be afraid to go back to the drawing board as needed.
Get Into the Entrepreneurial Mindset and Start Your Business Today
Ultimately, starting a successful business means doing your research and having evidence-based reasons for your decisions. The more information you have, the more confident you can feel in your decision and the likelier you are to secure funding.
For more tips on getting into the entrepreneurial mindset, make sure to check out the rest of our business blog!