So you’ve decided to start a business. That’s great! And now for the hard part: figuring out where to even begin.

The list of things that needs doing is going to be intimidating at first — but don’t fret! No one ever said starting a business was going to be easy. But there’s a reason why 99.56% of businesses in the Philippines are MSMEs (micro, small and medium enterprises), and these companies play a considerable part in the country’s fast rising economy. When you find the right combination of your hard work, your grit, and especially your grand business idea, it’s going to be worth it.

If there’s anything we support at LOFT Spaces, it’s the growth of a business from startup to corporate enterprise. Here’s what you need to know when starting a business:

1. BABY STEPS

Before you make any of the big decisions that come with handling a business, take time for introspection. Ask yourself the following questions:

• What are your skills and expertise?

• How about your passions and interests?

• How much can you spend to start your business?

• And how much do you actually need?

• What kind of lifestyle do you want to live?

• Are you really ready to be an entrepreneur?

Once you’ve got the answers to these questions, you can mentally prepare yourself for the long road ahead.

2. LAYING DOWN THE GROUNDWORK

Before you earn your way to success, you have to plan your roadmap to it. This is your first official step to being an entrepreneur.

List down your best and your worst business ideas

Sure, you want to start a business. But what sort of business do you want to do? What problem areas are you looking to solve? What services do you find lacking and how can you improve on them?

Once you’ve made your list, work your way down from 10 to five to three ideas. And from those three ideas, choose the one that you know you can stick to from startup to success. Congratulations, you have a business idea.

Assess your business’ viability

What are the chances of success for your business idea? It’s essential to evaluate the market landscape, your potential competitors, the problem areas your business can address, and the niches that you can fill.

Conduct market research to assess your business’s potential target market. Is there a demand for your product or service? If not, can you create a demand for it? With a market study, you get to strategize how you can reach your target market and engage with them — how you turn leads into sales. Use the data you gather from this research for your feasibility study to determine your business idea’s viability.

If you’re ever tempted to skip market research, proceed at your own risk. Even the most successful businesses fail despite all preparation; just remember that it’s better to be as informed as possible of all the ways you can fail so you can do everything you can to succeed. You can even consult a market research professional so you don’t have to do it yourself and work with an accountant for your feasibility study.

Plan your business to a T

Once you’re positive that your business idea is viable, you can start making your business plan. There are different kinds of business plans. How long your business plan should be depends on your business idea; is it within a traditional industry or is it a lean startup?

The former is typically longer and more comprehensive — a traditional business plan needs to address a complete list of specific concerns as expected by lenders and investors. On the other hand, there’s some room to be less specific in a lean startup business plan, but that doesn’t mean you can be less prepared as lenders and investors can still ask for more data to support your pitch.

However long you decide your business plan should be, it should always include the following details:

• What is your business about? What product or service will it provide?

• Who does your business serve? What value does it add for its target market?

• Who is behind the business? Who are its strategic partners? What are its key resources?

• How will it be financed? How will it earn revenue?

• What strategies will you employ? How do you project its growth in the next five or ten years?

A business plan shows how you will run your business, so we highly recommend writing one before even approaching a backer or financier.

Funds, funds, funds

After making your business plan, you’re ready to present it to willing backers and financiers. This is where preparing a detailed business plan comes in handy. Providing all the necessary information validates that you’ve researched every possibility for your potential business and that you’re reliable and proficient — and how better to start your entrepreneurship?

The best way to fund your business is from right out of your pocket, but it isn’t always possible. The next best thing is to get investors. There are different kinds of investors you can approach to support your business. In fact, even strangers on the Internet can be your financier! Here are the ones that are ideal for small businesses:

• Angel investor

As the name suggests, angel investors are “high net worth individuals” that provide capital from their own funds in exchange for equity in the company or convertible debt. An entrepreneur often finds an angel investor among his or her relatives or friends.

• Business incubators and accelerators

Though very similar, incubators and accelerators vary in how they support your business. It typically takes a few years for your business to take off from an incubator, while you can expect to launch a product or service from accelerator in a matter of months.

You can benefit from advice and assistance from both — incubators are more community-based and give you the opportunity to network with fellow entrepreneurs; accelerators are more results-based and profit-driven and push you to grow quickly.

• Crowdfunding / Cloud funding

A combination of crowdsourcing and microfinancing, crowdfunding is “the use of small amounts of capital from a large number of individuals.” On the Internet alone, you can show off the benefits of your product or service to millions of potential financiers. There are different kinds of crowdfunding, such as reward-based, peer-to-peer, and donation-based.

• Self-finance

Also known as bootstrapping, self-financing is any sort of capital that comes from your own pocket. Your funds can come from your personal savings, liquidated assets, or generated income.

• Venture capitalist

A venture capitalist is a person or company that invests in a business venture and provides capital for startups “in exchange for an equity stake.” These startups are “new businesses with high potential for growth” but tend to put off banks due to the substantial amount of risk that comes along with the investment. This, however, is a risk that venture capitalists are willing to take on.

In other words, we advise against quitting your day job until you get funding for your business, and until that business actually takes off. Remember: you have to be able to fund capital expenses, pre-operating costs, and working capital. You might want to get used to this step because it’s a major part of running a business!

3. THE BUSINESS SIDE OF THINGS

And now for the fun and not-so-fun parts: figuring out the details. You can also improve on your previous business plan during this stage.

Determine your business structure; is your business a corporation, a partnership, a sole proprietorship, or a limited liability company? Starting from there, you can begin processing all the paperwork relating to it — that and your business name, of course.

You also need to establish your business identity, which you’ll need to market and promote your work; and yes, you can promote something that you’re still working on. Build up excitement for your product or service to incite curiosity. By the time you’re launching, you’ll be able to engage with your generated leads.

Don’t forget to process your legal requirements, the nearly neverending list of documents that you need to apply for and complete before you can officially start operations. Familiarize yourself with the business requirements needed in your business location. In the case of the Philippines, you’ll need to register with the SEC, the BIR, your local barangay, and the local government.

Need help with registering your business? LOFT Spaces handles the business setup and accounting services, among others. Send an email to [email protected] and we’d be glad to help you out.

4. NEARLY UP AND RUNNING

Remember the business identity we asked you to work on earlier? This is where it comes in handy.

Set up your social media platforms. You can start with Facebook, Twitter, Instagram, LinkedIn, and YouTube. Each of these has distinct ways for you to promote your business, so use social media appropriately.

While you’re creating your business’s social media profiles, you should also be working on your official website. A website gives weight to your business; it declares that you are legitimate and trustworthy. It’s the online headquarters for your business — everything that you’re about can be found on that one platform. Make it a point to lead your clients to your website, even if they’re coming from your social media channels.

You can also use traditional marketing techniques such as TV advertising, flyers and brochures, billboards, and print ads. These also promote brand awareness, especially to people that aren’t always online.

These marketing approaches aren’t just for your clients. It’s also for your potential investors and future employees. After all, fast growing companies are going to need more capital and resources sooner or later. It’s better to get a headstart, don’t you think?

5. GETTING YOUR BEARINGS

As you and your business mature, you’ll have to adopt new practices as well as stay relevant in the market. We have a few suggestions for when the time comes:

• Update your business plan and marketing efforts regularly.

• Find (and keep) the right people to help you grow.

• Be flexible and adaptable.

• Follow best practices in customer service.

• Keep your feet on the ground and your head in the clouds.

We look forward to seeing you launch your business!

On the lookout for a starter office? LOFT Spaces has dedicated spaces for your fast-growing team. Book a tour today! Reach out to [email protected]. We’d love to work with you.