Launching Your Business: Essential Steps for Success

1. Setting Your Business Idea

Rd to believe, but dreaming a little dream started it all. An idea was born, a business hatched. What was, until now, a wild notion in the back of your mind, is about to take centre stage. This is when you need to really define the nature of your business. Firstly, is it actually a viable idea? There is plenty of information available on what makes a good business idea, so we’ll use this section to take a look at the characteristics of a business idea that is suitable for you and for your desired business. Any good business idea needs to be based on a service or a product. It needs to solve a problem. It might be something that sorts out a niggling issue or might be a product which is far superior to anything that is already available. Can you see what the product is but it’s difficult to explain. I recently met a potential entrepreneur with a great idea for a service. He said he’d thought about it for years and that tried to start the company up on numerous occasions. I stopped him and asked to explain exactly what he did. He ended up rambling on for 10 minutes and I still didn’t understand the service. He is obviously passionate about the idea, but for what reason? Passion is no substitute for clarity. This may be his dream business, but it’s currently a dream that will never be realised. The service is his product, but it’s a product that nobody will ever buy. His dreams need to be refocused. An unclear idea can also be understood in the opposite sense. You might know exactly what you are trying to do from day one, but the idea may be too complex to be viable.

2. Conducting Market Research

There are two types of data to consider when conducting market research – primary and secondary data. Primary data is information that you collect specifically for the purpose of your research project. This could be collected from internal sources such as sales history or through observation and in-depth interviews with customers. It is beneficial in that you are addressing issues specific and unique to your situation. Yet, primary data can be very costly and time-consuming to gather. Secondary data is information that has already been collected and is readily available from other sources. This is less costly and can be accessed quickly and easily. Yet, it may not concentrate on the specific information you require for the purpose of the project. Each has its own advantage, but dependent on the project, some information may be more easily obtained from specific data types.

Market research is a systematic, objective collection and analysis of data about your target market, competition, and/or environment with the goal being increased understanding. Through market research, you can minimize the risk to your business and identify new opportunities. This can be achieved by understanding the specific customer needs, providing a better understanding of the marketplace, and enabling you to create successful advertising, PR, and sales campaigns. Market research can also improve the effectiveness of your operations, such as a change in packaging, better positioning, and more cost-effective pricing. It will also give you an early warning about changing market trends, which enables you to be proactive and plan for the future. Another added value is that market research can enhance your overall business performance by using the research findings to improve and develop existing products and services.

3. Developing a Business Plan

One of the first steps in creating a business plan is market research. This is an ongoing program that should continue throughout your business life. By learning as much as possible about the market that you will be targeting, you can make more informed decisions and maximize your opportunity to become successful. This is important when it comes to developing services and making sales because people in different markets have different needs and wants. With a wide range of personal training programs and being able to work with different clientele, it is important to pinpoint specifically who you want to aim at because not everybody will be a potential client for you. Too broad of a focus is detrimental; it is better to be a specialist than a generalist. A niche market or specialization can be a key to success with less competition and the ability to command higher prices. Market research can involve collecting broad data or can involve something as specific as doing a survey to your local customer base. Always keep an eye on competitors and what they are doing. What works for them and what doesn’t? How successful are they? Can you learn anything from them?

In any business, it is important to set goals and work towards them. It is no different for your personal training business, whether it is growth, financial, personal or professional. Without a plan and goals, you can spend a lot of time and money by not getting anywhere. Goals can also provide a measuring tool for motivation, and we all know achieving goals can be very satisfying. When setting goals, make sure they are specific where possible. A specific goal will state what you will accomplish, when you will accomplish it by, and how much you will accomplish.

4. Securing Funding and Resources

Funding is the fuel for your business, and research tells us that many business failures can be attributed to poor funding. Don’t let poor funding be the reason for your business failure. Ultimately, you could fund your business from your own finances or obtain a loan from a bank. However, there are endless other ways to fund your business that you might not have considered. Generally, it is wise to form a strategy for funding from several different sources. Some of these options can include family and friends, Business Angels, bank overdraft, invoice factoring, hire purchase, leasing, or even obtaining finance from the suppliers of your goods. Family and friends are a very popular option, but remember if these relationships turn sour, you may have harmful effects on these relationships. Business Angels are wealthy individuals who typically invest between $10,000 –$750,000 in small start-up businesses. This can be a very attractive option for the small business due to the business angel often being an experienced entrepreneur who can offer invaluable advice and an extended network of business contacts, in addition to the capital investment. However, you will have to sacrifice some equity and a level of control of the business. A bank overdraft can be an effective short-term way of borrowing money. It is flexible, and interest is only paid on the amount overdrawn. However, the bank can ask for it to be paid back at short notice.

5. Implementing and Launching Your Business

Tips in implementing and launching a new business are broken down for a plan that guarantees success. Define your unique selling proposition. This is the quality that differentiates your business from the competition. It is essential in the initial and long-term survival of your business. Define your target market. You should put together a summary of your market research to ensure that you understand who and where your customers are. Define and build your brand. At the start-up phase, your brand is vital. It is used to attract and retain customers. Branding is not just the logo or graphic element of your business, but it is the overall impression that a customer will take away from your business. This gives you a blueprint as to how you want your company’s brand to be perceived over time. This can be a feeling, a specific price value, or an attitude. Your brand builds customer loyalty.