How to start a business in 2022

I’ve been trawling through articles with headlines proclaiming 10 easy steps to start a business. I love the optimism however in my experience it takes a little bit more than this.

If 2022 is the year that you are going to start a side business, branch out on your own or put in place some plans to do so, use this article as a guide to help you on your way.

First things first - who what when where why.

Who

Who are you selling to?

What will you sell

Are you selling goods or services?

When

When will you start?

Where

How will people know you exist?

Why

How is what you’re selling make a difference in people’s lives?

You genuinely need to ask yourself these questions and be able to explain to potential customers.

Let’s look at the first WHO in more detail. Think about your potential customer, how do they dress, where do they shop, where do they hang out online. How do you attract the right client? How will your client feel when they purchase your goods or services? What’s the experience like for them?

Start writing about your clients and how they will feel when they interact with your business. This will help you get clear on how you and others in the business treat clients, the way you communicate on social media and emails, the way you smile when you speak with a customer.

Have you ever had a terrible customer service experience - how did that make you feel? And because you felt that way - were you more or less likely to tell others about your experience?

When we have a great client experience - it makes us feel, well, great. That translates to clients telling others and recommendations. It’s a ripple effect. These days with online reviews and social media - your potential clients are more likely to check through these online platforms before purchasing.

WHAT are you selling?

For each business, it’s about communicating value. How much value is the client getting from using your goods/services?

If you are selling physical goods, how do you detemine the pricing structures? Research and starting a relationship with an excel spreadsheet or costing software. If you are selling goods there are a multitude of factors which go into the costing. Don’t leave money on the table.

If you are in a MLM (multi level marketing) business your pricing structure will be determined for you. If you are starting out selling it’s important that the pricing that you are charging is relevant. By this I mean knowing how much it costs you to purchase those goods, import duties, freight in and out, and the number of units you need to sell to break even. If you are selling goods, who pays for the delivery to the clients? And how are returns handled - does the client pay for the return or do you absorb the cost?

If you need to store goods, and you are paying rent for the premises, has this been factored in correctly. When Covid hit, shipping costs increased also. There were businesses who were absorbing these additional costs which ultimately impacted profit. It was a tricky balance between keeping customers happy and being able to survive.

If you compare the cost of similar products and base your prices on these - have you considered all the costs that factor into your products? Their costs may not be similar to yours.

For a service based business, when you start out, you may be running the business from home, so the overheads are minimal. Your home internet is already being paid, and you may have an area set up as an office. As the business grows and you employ staff, the pricing structure will need to be revisited as there are now additional costs to consider such as wages, super and workcover.

Whether you are selling an experience or physical goods, it’s vital that what is included is outlined and communicated clearly.

Start date is the WHEN

This is the part that causes some to procrastinate. Pick a date, and start to work towards it. When Cloudhouse was started, I picked the launch date and listed everything that would need to be completed prior:

• logo

• website

• software

• packages

• where to work from

• registrations, etc

This was all then broken into timelines and projects. Some tasks were easy to accomplish, some were painful. It’s a learning process and if you can outsource to someone who is an expert (and you can afford to do so) it may save some tears.

WHERE

How do clients know you exist?

Where are you located?

How do clients find you?

Do you transact online only or do you have a physical presence (store)?

Is your presence consistent across all social media channels/website?

WHY

This is not only how you making a difference in people’s lives but also WHY are you doing this.

What is the reason that made you want to take a chance?

What is it about your product/service that will make an impact?

Even if you jot down a few thoughts to the above, you will be clearer about where to start than before.

If you want to jump in, we’ve written a book called ‘Kitchen Table Empires’ which delves into what you need to know about starting a business. The link is here and is over 157 pages of comprehensive information.

If you’d like to book an appointment, click here and schedule a 15 minute insight session.

And don’t forget to share this page to other groups if it will help!