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startup business.pptx
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- 2. • 1. Chooseyour business idea. • Whether you are aiming to launch a disruptive global start-up or a cozy local establishment, every business starts with an idea. Knowing what you plan to offer and who you aim to serve is the first step toward starting your business. • Get some ideas for your small business. • 2. Conduct market research. • Market research is an information-gathering process that is used to help determine the likely success of your business. It incorporates data regarding economic trends as well as consumer behavior and identity in an effort to forecast whether your business idea has a place in the current market—or if you should make some adjustments to your offerings. • Market research can provide you with insight into what other similar businesses are doing, how they’re performing, and how you might be better able to serve your target clientele. Ultimately, it can offer data that supports the need for your business and adds quantitative value to your idea—both of which will be important as you write your business plan and aim to secure funding. • You can conduct market research independently by doing things like looking into local competitors and surveying your target clientele, or you can hire a market research analyst to conduct a more thorough investigation.
- 3. • 3. Writea business plan. • Your business plan is a guiding document for how you’ll build, run, and grow your business. • As you write your plan, you’ll be able to envision what your business will become, workshop navigating potential roadblocks, and imagine what success will look like for you. • This document is mainly for the benefit of you and your potential partners, investors, or funders, so you can structure it however you see fit. Many business owners will create a traditional business plan, which is a highly detailed, multi-page document. Traditional business plans outline information such as: • Executive summary • Company overview • Business goals • Market research • Internal organization chart • Services and product offerings • Marketing and sales plan • Funding requirements • Financial projections • Appendix • You can also opt to write a lean start-up business plan, which is a one-page document presenting a high-level overview of the information a traditional business plan would describe in detail. This formatting may be useful when you want to quickly present your business idea, though as you generate interest, potential partners or financial backers may ask for a more thorough presentation. • small donations from family, friends, and other people willing to contribute to the growth of your business. It’s a less traditional funding model that allows you to set the terms for repayment, if any, while retaining total control over your business. Some popular crowdfunding sites include Kickstarter, GoFundMe, IndieGoGo, or SeedInvest.
- 4. • 4. Securefunding for your business. • In creating your business plan, you’ll get a strong sense of the amount of money, or overhead costs, you’ll realistically need in order to run your business. The next step would be to secure that necessary funding. • There are a number of ways that you may consider funding your business. Some common options include: • Personal savings: Using your personal savings to fund your business, also called “bootstrapping,” is essentially investing in yourself. If you have a solid amount of savings built up, using your own money to start your business could allow you to maintain total control. However, it’s worth noting that self-funding also comes with the risk of your investment not panning out according to plan. • Business loans: Securing a business loan is when a bank or credit union gives you a set amount of money that you will eventually be required to pay back. Business loans allow you to retain control over your business, however, you will often be required to pay back the loan on a set schedule and with interest. • Investors: Investors are people who will provide you with seed capital to start your business in exchange for some kind of return, often in the form of equity or a role in your company. Unlike a loan, investors typically do not expect direct payback for their investment, and you may lose some control over your business depending on the investor’s desired level of involvement. • Grants: Business grants are sums of money given to businesses with no expectation of a return. Many grants list out a series of qualifications, and if your business meets those qualifiers, you can apply for the grant. Not everyone who applies for a grant will get the grant, but if you do, it’s essentially free money for your business. Grants can come from the government, corporations, associations, or a number of other types of organizations. You can start your search for grants at Grants.gov, or with an internet search for “small business grants.” • Crowdfunding: Crowdfunding is a set of
- 5. • 5. Chooseyour business structure. • A business structure is the first step in building your company’s legal set-up. In choosing structure, you determine how you’ll file taxes and your legal protections and liabilities. • There are four key types of business structures: • Sole proprietorship • Partnership • Corporation • Limited liability company (LLC) • Sole proprietorships • A sole proprietorship is a simple business structure in which one person is responsible for operations. This structure does not create a separate business entity, meaning business fall under your personal assets and liabilities. • Since this structure links business and personal assets, sole proprietorships are best if you low-risk business and will not be seeking outside funding.
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