Have you ever dreamt about being your own boss?
Now that small business confidence hit all-time high in 2017, it can be a perfect time to start your own business. The world economy is growing, entrepreneurs all over the world are welcoming tax reliefs, and consumer sentiment is promising – all these factors are very positive for the business environment.
The first step is, of course, to decide on your business activity. According to the recent data from Sageworks, the most profitable sectors today are professional, scientific and technology services, followed by healthcare. Higher than average profitability in niche services and service-based businesses, like accounting firms or law offices, is achieved due to little startup costs, while specialized training reduces competition. In contrast, manufacturing, accommodation and food services as well as retail demonstrate little growth, mainly because of changing consumer behaviour and fierce competition in the field.
Whatever business activity you choose, it’s much better to pursue business goals that are consistent with your vision and needs. As the world’s most well-known billionaire serial entrepreneur Richard Branson says, “Start by asking yourself what you could do to make your own life better or easier. If you want to become your own boss in 2018, coming up with a business idea is the first step. You can start by solving a small problem — it doesn’t mean the business itself will be limited.” Pick up the right target market, satisfy specific customer needs, and you are sure to win.
Finally, it’s essential to secure capital to cover startup costs. For this, Rohit Arora suggests you write a detailed business plan where you will describe:
- the products or services your company will offer
- who will operate it
- your target market
- marketing and promotion
- main competitors
- the differentiation strategy that will lead you to success
The business plan will be useful not only for banks, institutional investors and microlenders you wil turn to for funding but also for you personally: when you describe the details of your business in writing, you start thinking how to organise the things most effectively. Any drawbacks regarding your business idea are revealed at this stage too, which is a plus, not a minus, because it allows you to save money and, importantly, redefine the whole idea before you fully commit to it financially.