Starting a business is a dream come true for many people, but there is a lot of challenging thought which needs to be applied before you began the journey of turning your desire and dreams into a viable business.

The first two things you want to do is decide what it is you are going to sell (your product or service) and to whom you are going to sell it to (your market).

You would be surprised at the number of people that come into our office wanting us to set up a business structure for them based around a product or service they have neither the knowledge of or experience in nor a clue about the market they want to sell to.

Just because someone you know is making money selling a thing does not mean you will, unless, it is something you do possess some measurable experience with and knowledge of as well as knowledge about the people you expect to be selling it to.

Trust me when I say to try and sell anything you have no experience with or knowledge of to people you have no clue about is a recipe for disaster.

The best practice is to take stock of what you already have expert experience and knowledge of.

Try this:

Take out a piece of paper and draw a line down the middle of it.  On one halve label it
Experience and Knowledge | on the second half label it
Address Pain

What? Address Pain! What does that even mean?

In a nutshell, people; meaning you, me and everyone else, make purchases based on a need, be it real or imagined. That need is considered a pain point, and a pain point is simply a fix for something which will make our lives better in some way or make us feel better about ourselves. The product or service you offer needs to address that pain point.

Consumer Behavior and or Consumer Psychology are deep subjects you may well want to invest some time familiarizing yourself with. In doing so you will be way ahead of many small business owners. A good place to start is simply doing a search for either one in your browser, or visit this link at Wikipedia.org https://en.wikipedia.org/wiki/Consumer_behaviour which briefly covers both fields of study.

Back to your sheet of paper:

Here are three questions you want to ask yourself.

  1. What subjects would you say you have a vast amount of knowledge in?
    Subject matters you possess more knowledge of than say the average person does. Write them all down in the left column.

Keep in mind we all have a vast amount of knowledge and skills, but we also have known people often ask us to share, and the skills we enjoy doing more so than others. Focus on these because, at the end of the day, the time and energy you will be putting into your business should be around something you have a true passion for.

  1. What have you spent years learning to do that makes you an absolute expert on to where you can easily write about or teach others to do? Write it or them down in the left column.

Now move over to the next column, the Address Pain column, and write down what pain points each item in the left column addresses.

What you are looking for is the answer to one, or both questions below…

  • Which of the subjects in the left column will most likely be of interest to the most people in this market {your market is the subject matter be it a product, or service}
  • Which of the subjects in the left column will enhance the lives of the most people in this market?

This process will narrow down and help determine your area of expertise for which you may well develop an extremely successful business out of.

Once you have worked out what you are going to be selling and to whom you will be selling it to the next step is to set up your business structure.

To determine the type of business structure you should form such as a Sole Proprietorship, Partnership, or some entity type such as an LLC, C Corp or S Corp as well as others it is important to understand the advantages and disadvantages to each business type, so you will need to do a little research here because the main factors you will need to consider when determining which type of organization will best suit you and your business are taxes, personal liability, transferability or admission of new owners and investor.

WHOA! Yeah, I know you might have heard from the internet gurus that all you need to do to start a business was open your browser, grab a hosting account, a domain name, and slap up a WordPress blog or e-commerce site and start your journey towards fame and fortune. Sorry, such a strategy is no longer a realistic viable solution in the real world of 2018 and beyond. Those days are gone I’m afraid.

Now if you are in the United States and would like to start a preliminary research on your own before talking with us about the best business structure for your business, two great places to start would be..

(1) The Small Business Administration’s business entity breakdown at
https://www.sba.gov/business-guide/launch-your-business/choose-business-structure

(2 ) and the IRS of ‘course at
https://www.irs.gov/businesses/small-businesses-self-employed/business-structures

 

I hope you enjoyed this short tip on starting your business.  Give us a call and provide us the opportunity to help you set up the right business structure to best protect you and your business.