Setting up your own business can be a very exciting prospect, where all your ideas can become a reality with the correct knowledge and understanding of business. There are many challenges that arise when attempting to set up a business, this blog will aim to aide anyone wishing to take the step to becoming a business owner.
This section of the blog gives advice on what knowledge would be of benefit when the business is in the planning stages, giving a guide on what knowledge would be required to begin when setting up a new business. The following five points are key to any business start-up,
- Your skills
- The key areas in starting business – The 4Ps marketing mix
- The market area
- Product/service testing
- Producing a Business plan
Your skills
Your skills you possess that can help you build your business can be very important, these can range from experience in working in different sectors to qualifications you have archived. Using the knowledge, you have you can start to plan how you will achieve your goals and how you want your business to proceed in the future. If you have no previous experience in the sector you wish to enter there are many courses available online where you can improve your skillset therefore improving your input into the business. Specific tasks can be completed by external sources, although this can incur costs before you start the business.
The key areas in starting business
The 4Ps marketing mix is used as a strategic tool to develop new ideas, it covers product, price, promotion, and place. If you can gain an understanding of how to use the 4Ps it will help you develop your idea for a business. The 4Ps broken down,
- Product – covers the quality of product or service offered.
- Price – covers all the costs in producing the product or service.
- Promotion – covers the ways in which you will promote your product or service to potential customers.
- Place – covers the area in which you plan to offer your product or services.
This method can be used to set up a business but is also used to develop new ideas within business, the 4Ps marketing mix can be used as a guide to get the best out of your business and helping it succeed. For more in-depth explanation of 4Ps marketing mix follow this link https://www.youtube.com/watch?v=V0c1kJ79cF4 .
The market area
Understanding the market area you intend to be a part of is important, to know who your potential customers could be and how to make your product or service attractive to them. To gain more knowledge, research can be carried out on similar products offered by potential competitors giving an insight in to what is popular with customers, using feedback given on products to possibly improve your ideas.
Product/service testing
Allowing potential customers to have to test your product or service free of charge can provide valuable feedback. The information given in the feedback can be used to adjust the product or service if needed to ensure that when the product or service is offered to the public it is the best that you can offer. Using the feedback from testing can also provide information which can be used to promote your business.
Producing a business plan
A business plan is an important document when setting up a business, it presents your ideas on how you will accomplish your goals within the business. Typically, a business plan consists of seven sections, beginning with
- Business description
- Market analysis
- Competitor assessment
- Marketing plan
- Operating plan
- Financial plan
- Executive summary
[3]
The seven sections of a business plan outlined above provides a detailed plan on how you intend to achieve your goals with the business. The business plan is important when you are looking for potential investors or applying for a bank loan to set up your business.
For more information on business plans and templates visit, https://www.rocketlawyer.com/gb/en/sem/business-plan?gclid=Cj0KCQiAyoeCBhCTARIsAOfpKxhKkR_Np5vDsPEmnzhyLW9fVJPRLUzdhzdWmEPoRIX2CdHE7_3cofEaAjnGEALw_wcB.
References
[1] https://heidicohen.com/four-ps-of-marketing-mix/, accessed on 23/02/21
[2] Screenshot taken from youtube video,
https://www.youtube.com/watch?v=mePqHKMKxNY, accessed 23/02/21
[3] Ehmke, C. & Akridge, J. (2005). The Elements of a Business Plan: First Steps for New Entrepreneurs. Purdue Extension EC-735. West Lafayette, IN:AICC-Purdue University.
[4] https://www.forbes.com/sites/alejandrocremades/2018/07/24/how-to-create-a-business-plan/?sh=15d81c807391, accessed on 23/02/21
