If starting a small business has always been on your bucket list, then maybe it’s time to check it off. By the end of 2016, there were 9.9 million female-owned small businesses in America. You might think having so much competition out there means less opportunity for success. On the contrary, investors like to spend their money on businesses that operate in highly competitive industries. So, if you have an idea for a small business, you might be interested in a few tips to help you get your creation off the page and into the hands of consumers.
Plan Well
Realistically, unless you have your own bank reserve somewhere, you will need to raise some capital to bring your business idea to life. It’s always best to have a solidly written business plan to act as a sort of road map for you and your potential investors to follow. The important thing to remember about writing a business plan is that it needs to show that you are prepared for both success and failure. Investors want to know that you have a back-up plan in case the economy takes a turn for the worse, so be prepared to be up-front about the risks and rewards for investors.
Build a Strong Team
Being a small business entrepreneur doesn’t mean you have to do all of the work on your own. A strong team means that there is someone to share the responsibility of any legwork that will be involved. You may already know, and trust, people who will be committed to the task of making your ideas soar. If not, you should look for people with skills that complement your own, and experience in the arena you want to jump into. One safe bet would be recruiting an accounting professional and a lawyer.
Do Your Homework
Part of your business plan should be proving that you know the industry you are trying to break into when you make the pitch to investors. This means you should spend time putting your nose to the grindstone. Study the market to determine the growth potential of your product, and be able to project what kind of return investors can expect on their investment. It’s good practice to have a graph to show the kind of growth you expect your company to make over the first year.
Raise Funds Wisely
This might be the most difficult part of starting a small business. The trick is locating funding sources that match your needs and capacity. In other words, don’t borrow what you can’t pay back. There are viable financing options for the typical small business owner, particularly women and minorities. Female-owned businesses are on the rise, and some corporations offer grants to help bridge the gender gap. Crowdfunding and microloans are also great ways to raise start-up funds. Identifying resources to help you start small could be just a mouse-click away!