Starting a business from scratch

One day, you wonder in your room at home, pondering over what you want to do in the future. You suddenly think of an business idea, be it something new or existent in the world market, and you are eager to take advantage of it. However, you find out you need a business to market it and you don't know how. Don't worry! I will show you the basics on how to do that.

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Before you start a business, you need an idea on what you want to sell first, which, in this case, you already did. Generally, people think of an idea on what to sell first before they think of starting a business. After you have an idea, you create a business plan which answers the following questions: ‘What is the purpose of your business?’, ‘Who are you selling to?’, ‘What are your end goals?’ and ‘How will you finance your startup costs?’. The answers may be vague as you may have to adapt your business plan in accordance to the change in the market environment.

After you form a business plan, make sure you secure your source of finance for the operations of your business. The possible sources include your own personal money in your bank or external sources such as bank loans, venture capitals, overdrafts, etc. depending on how much you need. This could be done simultaneously with determining the legal business structure. There are various of business structures such as sole proprietorship, partnership, private limited companies, public limited companies, etc. (these will be discussed in the following blog posts) (Nicole Fallon). Also, other than sole proprietorships, there are more than one shareholder of the company, who are willing to invest with their personal funds.

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With finance and a business plan, you could finally register your business with the government! The procedures vary for different types of business structures ranging from almost no bureaucracy in sole proprietorship to complicated regulations in public limited companies. As a contingency measure, your business must have an insurance policy. This can save your businesses in emergency situations like property damage, body injury, or even bankruptcy.

Most people think that people can’t run a business on their own but the fact is that there are self-employed businesses too. However, in this following explanation, we will assume that the business requires a team of employees. Therefore, after registering the business, build your team. Hiring employees is not an easy process as it involves advertising the vacant position, interviewing, selecting and training. Sometimes you might not find the ideal person for the job but have to do with what you have and train them.

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With your team, you can now create your product and introduce the business to the world. There are various ways to market your business and product such as using TV advertisements, social media and magazines (more to be discussed in the following blog posts). With that done, you could revise these existing structures in the business and modify to slowly grow your business as you earn profits and reinvest them in the business. 

             In conclusion, it is not an easy process, but now you know it. Start by preparing mentally and evaluate all your decisions closely as even the slightest difference could significantly affect the start and growth of the business.

Reflection

         

         As I was thinking on what to talk about for the blog post, I thought about the most essential thing about owning a business: how to start them. I began on opening websites covering about this topic and it was not difficult to find all the information I needed. 

         When I was thinking over about the information I learned about, starting a business requires a lot of dedication, and contains a lot of hardships in the start, especially with the limited resources and knowledge you have. Hiring suitable employees for the company, I think, would be the hardest part as finding dedicated workers is a challenge as you may have to do substantial work to keep pestering lazy workers to work. With limited finance and probably 'low-skilled' workers, as an owner, you will have to do most of the work yourself. Gradually, as I researched more, I began to respect entrepreneurs more than ever, considering the amount of effort and time they put into making their business plan work. On the other side, I am now able to respect the ones who have failed as it might not be their fault that it failed, as it sometimes depends on luck.

by William Tjen