Starting a Business

5 Steps to Prepare Before Starting a Business

Doing business should be done as carefully as possible. Even before diving into it, there are various preparations that must be made. In this article, we will discuss the various preparations for starting a business.

Yes, you can start a business only after preparing the various steps below. Come on, follow our article to the end!

5 Preparations for Starting a Business

Most of the dreams of millennials lately, according to the latest research in 2021, the result is that 7 out of 10 people of generation Z and millennials want to be entrepreneurs. There are those who really intend to become successful entrepreneurs, and some are “talkative” or just following along.

We hope that all of our readers are not among those who are “talkless”, and want to become businessmen just because they think that “business” always brings profit. In fact, in fact starting a business must be done as carefully as possible, so that losses can be minimized early on.

If you really want to start a business, we hope you make preparations as carefully as possible. Here are 5 preparations to start a business that you need to do:

1. Prepare a Business Plan

The first step, you must prepare a business plan, because this one component is the basis of your business plan. Generally, a business plan is a written document that contains a complete plan related to the business that a party wants to run.

Here are the various types of business plans that you need to know:

  • Start Up Business Planning
  • Strategic Business Planning
  • Operational Business Planning
  • Development Business Planning
  • Growth Business Planning

Those are the 5 types of business plans or business plans that you need to know. Each of the types of business plans above has a different function. For prospective business people, what is generally used is Strategic Business Planning.

By making a business plan, you can plan company goals, strategies to be used, proposed marketing methods, and so on. So that part of the company can move in synergy to achieve these goals.

2. Preparation of Business Capital

Next, the components used to start a business are preparing business capital. The business capital is generally not obtained from one party or personal money, but can also be obtained by various methods.

But before moving on to the discussion, know the 3 types of business capital:

  • Investment capital: the type of capital used to start a company, and has the nature of continuing to shrink every year. Generally, this one capital is used to buy company assets.
  • Working Capital: the type of capital used to pay the costs needed by the company in the short term. Generally, this one capital is also referred to as production capital, and has high liabilities.
  • Operational Capital: the type of capital used to pay the company’s operational costs. Usually, this fee is issued monthly or annually, depending on the needs of the company’s assets.
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There are 3 types of capital that companies need, and here’s how to get company capital that you build:

  • Through personal savings
  • Personal loan
  • Loans from financial institutions
  • Selling company assets
  • Fundraising
  • From the sales / sales
  • Comes from investors

3. Determine the Target Market

When you want to start a business, it is important for you to do certain research to determine the target market. There are quite a lot of benefits of determining and recognizing the target market of the business that we will establish. These various benefits are as follows:

  • Can make the products offered to be more competitive than competitors’ products
  • Can create promotional content according to the target market to be achieved
  • Can directly communicate with customers through the products offered
  • Can increase sales of products that the skipper company offers

Many of the benefits above can be achieved by determining the target market you want to go to. When you want to determine your target market, here are the most appropriate steps:

  • Identifying the skipper’s business by answering the questions What, Why, Where, Who, When, and How (5W+1H)
  • Communicate intensely with previous clients
  • Look for feedback and do research on the feedback that has been obtained

4. Do Branding

Next, make sure to do branding in order to increase the brand awareness of the skipper company in the eyes of the public. There are many ways to do branding. Here are a few of them:

  • Intensive promotion on social media
  • Do a brand formulation so that it will be easily remembered by buyers
  • Make an advertising strategy that makes your product brand more viral
  • Take part in various exhibition events, bazaars, and so on

By doing branding, the brand that is carried by the skipper company will be able to get a place in the midst of society. Do branding regularly, so that the skipper’s business is more advanced.

5. Adding Value to the brand

The last step that can be used as a method of starting a business and preparing for battle with competitors is adding value for the brand that you are starting.

By adding a certain value to the brand that you are developing, buyers will be more interested in your brand. So they are reluctant to switch to other brands.

The following are the advantages of companies that successfully add value steps for their brands:

  • Products can be purchased at a higher price
  • The product brand can attract the attention of buyers more than products from competitors
  • Production costs to produce these goods will be further reduced

Those are the 5 steps to starting a business that you need to know and practice. Do the various points above so that the skipper’s business will grow from time to time. We will help you indirectly to facilitate the company’s financial management activities.

Well, you already know how to start a business as we have described above. By preparing a business plan, working capital, target market, branding, adding value, and also doing financial records, it is not impossible if the skipper’s company can develop well.