Launching a commercial venture needn’t take months. At RDI investments, we pride ourselves on our active search for the hottest new idea or app that’s on course to take the world by storm.
If you’re ready to enter the world of business, you might have started to feel a little overwhelmed. But, never fear. We’re here to tell you, you should start small with your business idea. Just remember, Facebook was initially coded in 30 days!
First, believe in your idea
All great businesses start with a great idea, no matter if you start small with your business, or otherwise. Be it an overhaul of how a service is presented, an innovative new perspective on the market, or – if you’re lucky, a totally new idea. What’s important, is that you know your idea inside out. Talk it over with your most critical friend. Get the opinion of your peers, ask them to challenge you with any holes they see in your prospect. Once your idea is robust and you have an answer for every eventuality – you’ll find a new type of self-faith is born.
This faith should sit at the core of all you do. Remember, if you’ve seen a gap in the market, many others will have too. Remind yourself you are the one who has the drive and passion to see this idea through and run for the stars!
Figure out some sort of business plan
Second tip to start small with your business? A plan. Business plans don’t have to be long and complicated. A quick business plan can and will fit on the back of an envelope. By the use of this method, you’ll be able to see quickly (30 mins) and simply where your money must be invested, and how. It’ll also help you break down if you can afford it, as even when you start small, some tough choices as far as where investment is required need to be made.
The back-of-an-envelope business plan should follow a certain format:
- Price up office rents, equipment, office furniture, wages, salaries, insurance, taxes, rent and pension payouts. These are essentials to run your business, and you won’t be successful if you don’t supply them.
- Break down this cost into per unit, or per hour.
- Determine your price per sale.
- Figure out how many sales will cover your costs. This is the figure you need to break even.
- Is this possible?
- Figure out how much profit you’d like to make.
- Revise the above based on that.
If you are unable or unlikely to be able to provide these things, then it’s time to save a little, work a little; stockpile some more money before you move forward. Don’t be disheartened! It’s better to start from a place of strength than jump into definite failure. If you don’t think you can supply all the money you’ll need, then it’s probably time to look for an Angel Investor.
Don’t be tempted to do more than the minimum
If you’ve got the figures to jump in, you might experience the heady joy that comes with the ability to jump right into your first transactions, or clients.
Remember, it’s best to launch your idea to the smallest group of people who can benefit from it. Your idea, say an app that provides paracetamol and dioralyte delivery to people when they are sick, Uber style – is best tested on a small batch of people first. This way, you can collect feedback and data from your initial test group, and modify your app based on this information.
The best type of advert is word-of-mouth. Start small with your business. Offer your product to a small initial test group, and they’ll feel like they’ve got access to the hottest new invention in your businesses field. If you make your original crew feel like royalty, they’ll soon tell their friends about your business, and you’ll have potential new users ready to knock your door down.
Ready to start small with your business? Need an investor? Then check out Raj Dhonota Investments. An Angel Investor; with a sense of business as unique as our founder’s, you’ll soon consider us sent from heaven. RDI work with people to establish holistic development; and turn ideas into businesses through investment, mentoring and our own unique philosophy. You’ll soon wonder where we’ve been all your life!
Disclaimer – Although we always endeavour to deliver accurate and insightful information, if you are legal advice; please speak to a professional. All opinions within this blog are the writer’s, should you identify content that is incorrect, please get in contact.