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How to Start A Small Business: 8 Strategies for Success

Updated: Dec 3, 2021

Starting a business can be an exciting and scary time. A lot of people have dreams, but not all of them are realistic or feasible. In order to start a small business, you need to make sure it is worth your while by doing the following:

-Research business industry that has a high probability of success

-Avoid providing a service or product in a saturated/low demand industry

-Write a thorough business plan before starting

-Find a mentor

-File for an EIN

-Hire an Accountant/Bookkeeper before you open your doors

-Register with your state's Secretary of State

-Write a thorough business plan before starting

-Get funding or lines of credit

-Market to the right audiences -Develop a marketing budget

-Know how much you need for start-up costs and how long it will take you to break even.

-Pick a business industry that has a high probability of success

-Avoid providing a service or product in a saturated/low demand industry

-Stick to your business plan

Write A Thorough Business Plan

To be successful, you need to FIRST write a thorough business plan before getting started. It's extremely important to understand the industry your plan to be in thoroughly before starting. That includes interviewing several people who have already had success in the industry in addition to learning how people have failed and hit roadblocks prior to you jumping in. Many businesses fail before they reach the 5-year mark which is likely due to poor planning as opposed to unusual circumstances. Here is a list of common reasons why small businesses fail:

-They have no business plan

-The lack of funds to start the company

-No understanding of how much money it takes to operate a small business for an extended period

-A poorly defined concept or a product that is not in demand at the time. This could be because there are too many similar products on the market

-An idea that is too risky for potential investors to want to fund

-A product or service that does not meet the needs of a large enough market segment. This typically happens when something new comes along and disrupts how people are doing things, but it takes time before everyone adopts this new way of life

-Lack of an adequate management team

-The inability to find the right people for key positions such as marketing, finance, or operations.

-Not having a detailed and executed plan how to bring in new customers (i.e., advertising, marketing, and Search Engine Optimization)

-No understanding of how much money it takes to operate a small business for an extended period

-Poor execution of the marketing strategy. The marketer might create a good campaign, but if there is no budget allocated or time allotted to execute that plan, then the effort will fail

Ask A Business Owner For Mentorship

A great way to learn how to start a small business is by asking for mentorship from someone who has already been successful. You can find entrepreneurs in your community through networking events, organizations, and online forums. One awesome source of business mentorship that we recommend is SCORE. It's an organization that consists of retired business owners who advocate for up-and-coming entrepreneurs.

File For A EIN (Employer Identification Number) With The IRS

Once you have researched and determined which industry you'd like to start in, you can become official and file for an EIN number. An Employer Identification Number or EIN can be obtained by visiting the IRS website and filling out a form online.

If you start a corporation, sole proprietorship, or partnership and want to start taking in income for the business then you need an EIN number. An Employer Identification Number is how your company will be recognized by the Internal Revenue Service (IRS) as well as how it will file taxes on company earnings.

Register With The Secretary of State

-The first step is to register with the Secretary of State for your state. This makes sure that you have all of your legal paperwork in order before starting anything or taking any other steps. You will need this information when doing business online, applying for credit, and anywhere else where it's needed. In order to lease a property or apply for a bank account, you'll need to get registered first.

Secure Funding For Your Small Business

How do small businesses secure funding? What are the best sources of funding for new businesses? There are many ways to get started.

-A business loan from a financial institution such as your local bank or credit union.

-Government grants, which can range in size and scope but often require matching funds on behalf of the applicant.

-Crowdfunding: Raising capital by soliciting donations online through platforms such as Kickstarter or IndieGoGo.

-Bootstrapping: Raising capital through your own personal funds, savings, and/or credit cards.

-Raising capital through the funds of friends or family members.

-Angel investors: Investing in a young company with high potential to make it big, usually for a share in the ownership and/or profits.

Hire a Bookkeeper or an Accountant Fast

If you've just started your business, it's time to make a decision on how you want to handle the finances. Do you hire an accountant who offers bookkeeping services or should you use software like QuickBooks? It may seem that hiring someone is more expensive but when compared with the costs of using accounting software and training yourself how to do it, hiring a bookkeeper or accountant is the better option. They can help you achieve the following objectives:

- You know how much you're spending and how to easily manage your business finances

- Your business is in compliance with state requirements for how often you file taxes

- It's easier to spend time on growing your company rather than trying to figure out how best to use accounting software on your own.

- You can work with someone who has all of the knowledge about how to do things right for your industry with regards to compliance and tax laws

Avoid Low Demand or Saturated Industries

It's important to market your product or service to a specific group of people because this is where they are most likely going to come from. You should know what industry you want to go into and how much of a success that industry is. It's important not to pick something with low demand or saturated industries because you will have a hard time promoting your products/services due to excessive competition or a lack of interested parties.

Implement A Strong Marketing Strategy

What are the top marketing strategies businesses use to grow revenue? You should have a strong social media presence, you need an outstanding marketing and SEO strategy so that people can find you. Your company needs to be on Google maps for people in your area to find you. It's a simple fix just register for a Google my business account. Make sure all of your content is aligned with keywords that matter most in relation to what you are offering so that when people search for your product or service they find you. You need to target the right audience and make sure you are regularly spending money on marketing, remember it takes money to make money. Google beats out all platforms by 10's of millions of viewers over social platforms and alternative search engines every month. Make sure you have a strong presence on a platform that your consumers use the most.

Consider Getting Involved In The Vending Machine Business

Vending machines are a business that can be profitable with little capital, and it is one of the most popular small businesses around. It's a great business industry to get into because it does not require much labor or overhead costs. The industry makes for a perfect startup business, and it is hands down the best first business for busy people who have jobs. If you are a single parent or aspiring entrepreneur who has a full-time job, the vending machine business is perfect for you.

You don't even have to do much of the work. Vending companies have a few options to keep their inventory stocked: they stock them themselves or an owner/operator works with contact a contract filler to ensure that products are readily available for consumers to purchase.

Learn More About The Baby Vending Machine Business

Here at Baby Vend, we coach aspiring business owners, serial entrepreneurs, and facilities/property managers on the benefits of placing our unique vending machine at their place of business. The last time we checked, there was no shortage of people having children, but we do notice that there are a "limited" number of locations parents all over the United States can access when it comes to purchasing products for a newborn or toddler.

Think about it. If you are traveling through an airport to catch a flight, do you typically see a store that carries diapers, formula, wipes, or healthy snacks and drinks for kids? Probably not. If you attend a sporting event or go shopping at the mall and realize that you are out of diapers and formula, you are in trouble!

Typically the only place that you can go to for baby products is the nearest supermarket, which is oftentimes not easily accessible.

Parents run into this problem all the time and there is NOT ONE solution on the market except for the baby vending machine that our company provides. We help many property management companies and small businesses owners (some soon-to-be business owners) like yourself provide a recession-proof business and products that people are always in need of and can't readily access they locate one of our baby machines.

If you are thinking about the next business you are going to start, you need to have a conversation with us about the vending machine industry. In our industry, the placement of the vending machine is 90% of the battle.

Our machines are placed in high-traffic areas such as neighborhood convenience stores, laundromats, hotels, apartment complexes, malls, airports, and even amusement parks. People see our machines, make a purchase and the cycle continues every day.

Read more about how to own a vending machine by reading more of our blog posts on our website or contact us directly by clicking here to speak to an industry expert.

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