Do you have a desire to start a business? This is one of the problems faced by novice business people. Starting from being confused about how to start a business from scratch to getting capital to start developing it. Therefore, it is important to have sufficient knowledge if you want to start a business.
Moreover, every business has its own risks, so making careful planning can be the first step in starting a business. Therefore, learn how to start a business from scratch below, which is certainly important for beginners to know. Check out the full review here.
How to start a business from scratch
Starting a business from scratch requires careful preparation and planning. The following are the first steps to starting a business for those of you who are currently still beginners, read in full here.
1. Determine the type and concept of business to be run
Determining the type and concept of business to be run is an important step in starting a business. There are several types of business you need to know about, starting from products or services. Decide whether you want to sell goods (such as clothing, food, or digital products) or offer services (such as graphic design, consulting, or electronics repair).
Another type is online or offline business. Your business can be run online via a website or e-commerce platform, or offline such as opening a physical shop. It could also be a combination of both. Then determine the business concept too, for example what makes your business special and different from competitors? For example, if you are opening a clothing business, an eco-friendly concept or custom-made clothing could be an attractive USP.
2. Conduct market analysis
Carrying out market analysis is a crucial step in starting and developing a business. This analysis helps you understand market conditions, customer needs, and the position of your business amidst the competition. The goal is to understand how much customers need the product or service you will offer.
You can conduct surveys for potential customers. Questions can cover their preferences, purchasing habits, and expectations for the products/services you offer. Don't forget to do a competitor analysis to see who is selling similar products/services (direct competitors) and who is selling substitute products (indirect competitors).
Also Read: SWOT Analysis in Business; Benefits, Examples, and How to Make It
3. Determine the uniqueness of the product to be sold
Determining the uniqueness of your product is key to attracting consumer attention and differentiating your business from competitors. The uniqueness of a product can arise from the product's ability to solve problems that consumers often face. Conduct research to find out unsolved problems or needs that are not being met by products in the current market. For example, chemical-free skin care products for consumers with sensitive skin.
Sometimes, the uniqueness of a product can also emerge from the story behind it. A strong business philosophy or mission, such as supporting local communities, being environmentally friendly, or focusing on ethics, can attract the attention of consumers who care about these issues. For example, fashion products are made by local craftsmen with a fair trade concept.
4. Prepare business capital
Preparing business capital is another important step in starting a business. Capital will be used to finance various initial business needs, such as production, marketing and operations. If possible, starting a business using personal savings is one of the safest ways. You have no debt burden, and all profits generated are yours. But also make sure you still set aside emergency funds for personal needs.
If savings are not enough, you can look for investors. Several types of investors that can be considered include angel investors, venture capital, and crowdfunding. Apart from that, you can also take advantage of loans from financial institutions such as banks and finance companies to start a business. Make sure to choose the type of loan that suits your capabilities and your business. For example, there is People's Business Credit (KUR), working capital credit, and investment credit.
5. Improve personal and product quality
Improving the quality of yourself and your products is critical to ensuring long-term business success. Personal quality is related to your abilities and knowledge as a business person, while product quality is related to customer satisfaction. Don't be lazy to gain new knowledge by continuing to learn.
The business world is always evolving, so it's important to keep your knowledge and skills up to date. For example, by taking courses, reading business books, or attending workshops. Furthermore, by improving product quality which is influenced by the raw materials used and the production process. Ensure that the raw materials used are of high quality, and that the production process is efficient and consistent.
6. Expand business networking
Expanding business networking is the key to developing a business, getting new opportunities, and learning from other people in the same or different industries. Business events such as seminars, conferences, or workshops are good places to meet other entrepreneurs, investors, and professionals in your field.
Apart from that, you can also join business communities, both online and offline. This community gives you access to a network of other entrepreneurs who can share their experiences and help you develop your business. Social media can also be a powerful tool for building relationships in business. Use platforms like LinkedIn, Instagram, Twitter, or Facebook to connect with people in your industry.
7. Take advantage of the use of social media
Using social media effectively can provide many benefits for businesses, especially in terms of marketing, branding and increasing interaction with customers. With active users, social media allows businesses to reach more people. Every time someone views or interacts with your content, they become more familiar with your brand.
Platforms like Instagram, Pinterest, and TikTok focus heavily on visual content. This provides an opportunity for businesses to showcase products visually and attract the attention of potential customers. Visual content, such as high-quality product images or product demonstration videos, can be more effective in attracting attention and generating buying interest.
8. Evaluation
Business evaluation is an important process for assessing overall business performance and development. This evaluation allows business owners to identify strengths, weaknesses, opportunities and threats (SWOT), as well as determine strategic steps that need to be taken to achieve long-term goals.
By conducting thorough and regular business evaluations, you can gain clearer insight into business performance and areas that need improvement. Evaluation also helps in making the right strategic decisions to improve weaknesses and take advantage of opportunities, so that the business can develop more optimally.
How to get business capital
Obtaining business capital is one of the main challenges faced by many entrepreneurs. There are various ways to get capital, either through personal sources, financial institutions, or help from investors. Here are several ways you can consider getting business capital.
Source: Unpslash/Khachik Simonian
1. Business capital loans from financial institutions
Business capital loans from financial institutions are one common way to obtain funds to start or develop a business. You need to pay attention to the financial institution you will use to make the loan. Usually there are three institutions, namely banks, finance companies and non-bank financial institutions such as cooperatives.
Of course, before taking out a loan, you need to take into account all aspects of the business. For example, determining how much funds are needed and for what purposes, such as working capital, purchasing equipment, or expansion. Don't forget to make a detailed plan about how the loan funds will be used to achieve your business goals.
2. Savings
Special business savings are used to hold and manage business funds. This savings helps business owners separate personal finances from business finances, making it easier to manage finances, record transactions and business financial reports. Using business savings is very important for maintaining healthy cash flow and making it easier to plan and manage business capital.
Apart from that, it also makes it easier to manage taxes, audits and financial reports. Financial transactions are also neater and more structured because personal and business finances are not mixed together. Then if you work with partners or investors, business savings ensure that all funds are managed transparently.
3. Credit program from the government
The Indonesian government provides various credit programs to help businesses, especially micro, small and medium enterprises (MSMEs). These programs are designed to provide access to finance with lighter conditions and lower interest compared to loans from conventional financial institutions.
Therefore, you can take advantage of this facility for business financing. Some of them are People's Business Credit (KUR), Micro Credit Program (PMK), Ultra Micro Financing Program (UMi), and many more. Please adjust it to your business goals so that it is more targeted and provides wider benefits.
4. Investors
Next is getting business capital from investors. You need a comprehensive and compelling business plan, including a business description, market analysis, marketing plan, financial projections and growth strategies. A good business plan shows your profit potential and readiness to run a business.
Investors want to see that you are dedicated and have the ability to run a business. Show your commitment and your team's experience in managing and developing a business. In this way, you will get funding from them because what you present is convincing and can be accounted for.
5. Crowdfunding
Crowdfunding is a method of raising funds for a project or venture by collecting contributions from a large number of people, usually through an online platform. This is an alternative way to obtain capital rather than relying on traditional funding sources such as banks or large investors.
Just like other business funding that requires a thorough plan, the same goes for crowdfunding. Explain your business idea clearly and interestingly. Include information about the problems your business solves, the solutions it offers, and how you differ from competitors.
Why should you do business?
1. Financial independence
Doing business gives you the potential to generate greater income compared to a regular job. By owning a business, you have complete control over your finances and cash flow. You can set prices, control costs, and determine strategies that maximize profits.
2. Opportunities to innovate
Doing business gives you the opportunity to implement innovative and creative ideas in products or services. You can create new solutions for unmet market needs, as well as explore different approaches to solving problems and meeting consumer demands.
3. Increase life satisfaction
Seeing your business grow and succeed provides a sense of personal accomplishment and satisfaction. You can pursue your passions and interests, and experience the results of the hard work and dedication you invest in your business.
4. Long term benefits
A successful business can be a valuable asset that increases your wealth and provides stable income for the future. A business can also provide retirement opportunities if the business continues to grow and generate profits.
5. Become a legacy and influence
A successful business can be passed down to the family or the next generation, providing a valuable economic legacy. Additionally, you can impact an industry or community with the products or services you offer, creating a meaningful legacy.
Every business definitely has its own risks. Therefore, as a beginner in business, don't hesitate to take any risks as long as you have planned at the start. Learn how to do business for beginners above and don't forget to practice it too. Hope it is useful!
If you have a strong desire to start a business, but are constrained by business capital, you can apply for a business capital loan through BFI Finance. BFI Finance is a financing company that provides multi-purpose loans guaranteed by Vehicle BPKB and House Certificates. You can adjust the amount of business capital according to the collateral you guarantee. Enjoy disbursement of up to 95% of the asset value and competitive interest rates over the loan period.
BFI Finance is official and supervised by the Financial Services Authority (OJK), and has served more than 2 million customers from all over Indonesia. #SelaluAdaJalan with BFI Finance.
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