Want to create your own business, but don’t have enough employees or funds to get started? If so, a micro-business might be for you.
In contrast to a small business, a micro business has fewer than 10 employees, makes under $250,000 per year, and demands less than $50,000 in startup costs. Since micro businesses don’t have stakes in multiple markets, they’re able to specialize and become experts in a particular area. Additionally, with fewer employees to consult and pay, business decisions are easier and business costs are lower.
Interested in starting your own micro business? Keep reading to learn how in six easy steps.
1. Choose your specialization
The first step to starting any business is to pick what kind of business you want it to be. For micro businesses, choosing a niche area of interest is the best route. A great way to narrow down business ideas is to think about what you do in your spare time or what your passions are. Is there anything you could monetize?
Before jumping into a particular specialty, you should conduct research about the potential market for your business. To do so, look into local or online communities with a passion for your prospective product or service. If your business satisfies an unmet need, you might just find success.
2. Make your plan
Now that you have an idea, it’s time to start planning. For starters, you’ll need an executive summary, a business model, a market analysis, and a list of products or services you plan to sell. Then, you should create a business structure, a marketing strategy, a financial plan, and an appendix. The most important aspect of the business plan is crafting a well-defined vision. Everything you add to your plan should work toward achieving that goal.
3. Gather your funds
Once you create a financial plan, you should figure out how much money you need to get started. Be sure to consider potential costs for product development, rent, salaries, and anything else you add to your business plan.
From there, look into various ways to earn the funds needed to start your business. Before moving onto the next step, you need to make sure your funds are ready to go.
4. Improve your product
In your business plan, you should’ve identified the products or services your business will sell. To make sure consumers approve of your prototype, you should have focus groups, local vendors, or friends and family members test your products.
Afterward, be sure to survey their thoughts and improve your items based on their constructive criticism. Alternatively, you could launch your products with a soft opening to gather initial feedback from a select group.
5. Protect your business
Even in the early stages, it’s critical to keep your business protected. One way to do so is to get a trademark or LLC for your brand.
For even more protection, consider obtaining small business insurance in the case of an accident, emergency, or lawsuit. In many U.S. states, liability insurance is required to run a business. If you plan to work from home, you should look into home business insurance.
6. Attract your market
Although your area of interest might not appeal to the widest market, there’s probably a small but passionate crowd that will be eager to embrace your business. To find them, make sure to research your audience and figure out the best channels to reach them.
Test out different channels by launching a social media account for your business, creating a unique website, or investing in advertising to get the word out. With the right eyes on your business, you’ll be more likely to succeed.
As you can see, starting your own micro-business only requires six simple steps. If you want even more information and advice about micro-businesses, check out the infographic from The Zebra below.
Guest Blog by: Pia de los Reyes from Thezebra.com