What do you know a lot about? For example, if you are a talented baker and enjoy putting together new and interesting recipes, a bakery is a good choice. Focus on your talents and interests.
Walk or drive around your city. Bring a pen and paper with you to write down the businesses you see. Make a tally mark next to each business as you come across more than one. For example, if you see 5 bakeries, you should have the word “bakery” written with 4 tally marks next to it. Although not the most scientific, it can give you a good idea of what kind of shops are in each area. Visit your local chamber of commerce. Typically, chambers of commerce offer a wealth of information about what businesses are already existent, and lots of additional information for small business owners. They may be able to advise you on potentially good business ventures. Governmental agencies typically offer plenty of information about economic indicators, income and earnings in different parts of the country, as well as statistics about employment. [1] X Trustworthy Source U. S. Small Business Administration U. S. government agency focused on supporting small businesses Go to source This information can also point you in the direction of good business ideas. Visit trade shows and read business magazines. These provide yet another source of information about business trends in the country and maybe even specifically in your city, depending on where you live. They may also inspire ideas you hadn’t previously considered. [2] X Trustworthy Source U. S. Small Business Administration U. S. government agency focused on supporting small businesses Go to source Search online. You can search for things such as small businesses, the neighborhood you’re interested in and the name of your city to find other databases and potentially even academic information about business trends in your local area. [3] X Trustworthy Source U. S. Small Business Administration U. S. government agency focused on supporting small businesses Go to source
As a startup company, calculating your margin is a bit tricky. However, you can get a good idea of what your costs should look like by comparing the margins of the industry averages and competitor companies. For example, you can find out how much your competitor sells their product for, and compare it with your calculations of how much the product costs to create.
In order to calculate the final number correctly, you have to add a 1 in front of the percentage because when you multiply a percentage, you place a decimal in front of the number (so 10% becomes . 10), and when you multiply a decimal number by a whole number you get a smaller number. For the case of calculating product price, you have to add a 1 to make the number bigger, so 10% becomes 110%, which for multiplication purpose becomes 1. 10.
In order to calculate the final number correctly, you have to add a 1 in front of the percentage because when you multiply a percentage, you place a decimal in front of the number (so 10% becomes . 10), and when you multiply a decimal number by a whole number you get a smaller number. For the case of calculating product price, you have to add a 1 to make the number bigger, so 10% becomes 110%, which for multiplication purpose becomes 1. 10.
The Small Business Association of America offers a free tool that allows you to map out all of the businesses in your city that offers similar services. Identify the top competitors by searching the web. For example, if you want to open a beauty salon, search “beauty salons” + the name of your city. Read reviews about each one. Look specifically for what reviewers like and dislike about different salons. Not only will this help you identify competitors, but it will also give you ideas about how to improve your own business. You can also find out about the competition by visiting the stores. Check their prices and chat with their employees. Look at how their store is arranged. You should be looking for some way that you can do better than them. For example, offering an extra service for free or for a minimal charge. Remember that even after your shop is well-established, you should keep up with what the competition is up to! This way you can do your best to keep ahead.
If you plan to apply for financial support (e. g. a small business loan, or government funding) make sure you include a section that outlines how much money you need over the coming five years, how the funds will be utilized, as well as any plans you may be planning to implement in the future (e. g. if you plan to sell the company after it becomes profitable). [9] X Trustworthy Source U. S. Small Business Administration U. S. government agency focused on supporting small businesses Go to source It is a good idea to have an accountant evaluate your business plan. He/she might come up with additional costs to consider, start-up tax breaks, or add additional insights about your income projections.
Information about how much money you need and how the money will be used should be present in your business plan. How you find investors depends on your specific situation. For example, maybe you have friends or family members who want to help you get on your feet, or maybe you want to apply for a small business loan. Ask about government grants and loans at your local chamber of commerce. Regardless of what type of investor you find, they will probably want to make sure you have a strong plan for getting your business off the ground.
You can also search online for state and county government websites.
You can ask around at shops who sell similar products to see if they will help, especially if it is a store that is unlikely to be a big competitor because they focus on a different market. Search the internet. For example, search for “wholesalers and suppliers” + your industry + your city". If you have specific requirements you can also include that in your search terms. For example, if you want to offer organic products, include “organic” in your search terms. Look in trade journals. Find the most popular trade journals for your industry, and buy a recent issue of the journal. Not only will you find lots of interesting information about your business, but there are likely to be lots of advertisements for suppliers too.
Think about what areas are trendy for shopping. These areas may have more expensive rent, but may have the exposure necessary for success. On the other hand, if you can’t afford a shop in the best part of the city, try thinking about what areas of the city are “up and coming”. These areas are likely to be less expensive, but can still be good for becoming successful because the trendsetters of the city are likely to visit these areas.
The best way to learn about how much exposure the shop will receive is to spend time observing the behavior of the people who come through the neighborhood. For example, how many people can you count walking around in the neighborhood in an hour? Are there lots of other shops that people come in and out of? Do people seem to do a lot of window shopping on this street, or are most people walking hurriedly?[11] X Trustworthy Source U. S. Small Business Administration U. S. government agency focused on supporting small businesses Go to source Also pay attention to the auto traffic too. Is there adequate parking for drivers, or do they have to park half a mile down the road to visit your shop? If you live in a city where most people drive, you want to find a location where drivers will be able to stop by with some convenience.
For example, if you want to open a toy store, parents will likely not want to bring their children to the area if there is a lot of muggings and gang violence. [12] X Trustworthy Source U. S. Small Business Administration U. S. government agency focused on supporting small businesses Go to source
For example, ask him how he will help keep up with maintenance. If something in the building breaks (e. g. water heater) how fast will he be able to fix it? It will affect your business greatly if it takes him a month to gets things fixed. You can also ask him if he would be willing to agree not to rent any other shops in the building to competitors. Go with your instincts! When chatting with people, you will often get a feeling for his/her concern and sincerity. If you leave the conversation with a bad feeling, don’t discount the importance of that!
Again, look in trade publications and online for people and businesses selling equipment. You may be able to buy used if you are having a hard time with the cost of brand new equipment. Search the internet for people selling equipment. Many websites allow people to post advertisements for equipment they want to get rid of in your area. Some companies may offer leasing options. If you don’t want to commit to a piece of equipment for the long term, or if you can’t afford to purchase one right away, this may be a good option. Additionally, you may be able to negotiate your lease so that it can contribute to eventual ownership if you decide to commit. [14] X Trustworthy Source U. S. Small Business Administration U. S. government agency focused on supporting small businesses Go to source
Be sure that you are complying with all of the employment laws that apply to you. Your employees are the face of your business when you’re not there. Therefore, do your best to hire people who are reliable, friendly, and efficient.
Harness the power of social media. Create accounts that will allow you to advertise your business for free (you can always put money into later, once you’ve become well-established, if you wish). By doing this, you will be able to post information about your business, post secret deals for followers, and advertise any special events you may have. Be sure to share any information about social media accounts you have as much as possible. For example, if you open a bakery, try setting up at a local farmer’s market for a few weeks to get the word out. On your booth, post information about where you are located, your phone number and opening times, as well as where you can be found online. You can encourage social media followers by offering a special deal, where customers who follow your business will get a gift when they come into your shop with a “password” that you post on your social media page/s.
One rule of thumb is to always have enough inventory on hand so that any customer can purchase whatever they want, whenever they want. [15] X Research source However, this applies best to businesses that don’t sell perishable goods. Contact trade associations to find out the industry standards. [16] X Research source In your first months, you may have to go through some trial and error to get your inventory on track. This requires that you keep accurate records of how much you sell and when you sell it. Hopefully, over time the amount of inventory you need will grow, making it doubly important to keep good records of your sales. This may also require you to take inventory at least once per quarter to see how much you have of each product. [17] X Research source
Although the grand opening may end up costing you money in the beginning, if you have a good grand opening you will make up for it in new business. Make sure to advertise the date and time of your grand opening! Have flyers sent out, post an additional ad in the local paper, create a social media account for your business.
