How to Start a New Business in 2022
For anyone listening to the news in 2022 the prospect of starting their own business might seem like the craziest thing in the world. Crashing markets, an expected financial crisis, world war, the list goes on. In such unstable times, can you really start a business to not only survive but thrive in the post-pandemic world?
You might be surprised to find that starting a business might be easier than you think. If you cannot find the job that you want, you can join the ranks of those who ended up making the job they wanted. If this sounds enticing, then see below our tips and tricks on how to get started.
The Big Idea
Everything starts with the Big Idea. This can be your childhood passion, or simply a niche you think you can cover. Starting with something that you like can make it easier to dedicate yourself, since getting a new business on its feet is going to be a lot of work, make no mistake. The personal satisfaction that you would get out of it, however, can make it all worthwhile.
Do you want to change the world or just capitalize on one of your hobbies? Do you want it to be a full-time occupation or just a side gig for your existing job? You need to ask yourself all of these questions and more, as well as do a lot of market research and plan ahead. While planning has been made easier in recent times due to the proliferation of tools you can find on the web, such as an online decision tree maker, to do the research you’ll need to get down to the nitty-gritty.
Come up with multiple ideas on what you are good at and think you can do and then check to see if it is profitable. Usually, the best business ideas are those that provide for a customer’s needs. Take the time to research the existing market and put on the chopping block those ideas that you think simply don’t pan out. If none of your ideas do, get back to the Big Idea stage to brainstorm: research successful business sectors in your area and check popular business ideas.
Doing Your Research
One of the most important steps is doing the proper research. This is what makes or breaks a business. Only 80% of new businesses survive their first year and this is due to a lack of proper research to test a Big Idea. The main questions you will want to answer when researching your idea are:
- Target audience and needs to cater to – How many people would be interested in your product? Where do they live and how can you reach them?
- Check Competition – How many options are there for your product? How much do customers pay for them?
- Check the market – Is there a demand for the product or Service? Is the market saturated? How much do customers pay?
There are multiple ways to do research, but most of them can be put into either a “first-hand” or “second-hand” research category.
Secondhand is what most people are comfortable with as well as accessible with the advent of technology. Just a search away you can find online business articles and data analysis, you can follow the money trail to see what business sectors recorded the biggest profit as well as check customer service complaints on business products to see what went wrong. While this can give you an idea, everyone has access to it, including your competition.
Firsthand,as the name implies, is done by you. Either calling people, doing surveys or calling up the future competition pretending to be a client to get information on how they operate can be a good market research technique. Stop people on the street that just came out of a store similar to what you want to open, pull out your phone and tell them you’re doing a survey for your YouTube channel. Actually, open a YouTube channel reviewing the service you want to offer to get in touch with potential customers and see their needs. This is where you need to get creative.
Planning for Your Business
Research examples of traditional business plan formats versus lean startup plans. Regardless of what you choose to go for, the essence of a business plan is to give structure to your business goal. It needs to have a mission statement, what your company is and what product or service it offers.
Depending on your state or country, you might need to mention the legal framework of your business. Share any plans you might have for the future or any vision you might have. Depending on how your business plan is framed, you might win or lose potential investments so extra care needs to be put into the title of the competitor analysis. Write it like a sales pitch because that’s exactly what it is: you’re selling your business idea to people willing to give you their money to make your dreams come true.
Keeping It Legal
You’ll need to make sure you are compliant with local laws and regulations as well as pay any fees or taxes. This varies depending on the activity as well as geography. Go to your local town hall or state website to see what you need to do and make sure you make a note of any permit expiration dates as this can lead to your business getting shut down if you’re not careful.
Legal consultation might be needed depending on your chosen field, so make sure you look up a local lawyer to help answer any questions you might have.
The Post-Pandemic World
Most businesses have made a change in the way that they operated following the 2020 Covid-19 pandemic. While some restaurants have closed down, for example, others have embraced the new demand for food delivery and have fully digitalized their business. Any shift in the market presents opportunities and you need to be ready to seize them.
Besides expanding online with your services, employment can be made work from home to minimize business operational costs so you don’t have to pay for more than an office or even make a room in your house the “business office” if you plan on employing a small number of people at the start.
Conclusion
The same old business tips apply now as always, and while the shifting market trends might seem daunting, remember a simple statistic: there are more new businesses now that successfully pass their first year now than ever! So what are you waiting for? Go become one of them!
