6 Components to Get Your Business Started
Whether you’re changing careers completely or just want to create a side hustle, starting a business is a lot of work. And while many people associate this with a huge investment, the reality is, that you don’t need rounds of funding to be successful. You can get started right now, today, with minimal out-of-pocket costs. Here’s how.
1. Write a business plan
If you’re just trying to bring in a side income, creating a full business plan may seem over the top, but it’s important because it can help you break down each area of your blossoming business so you can make more strategic decisions.
For example, you might have initially wanted to allocate a specific amount of money to marketing but realize through cultivating a business plan that you’ll need to fund the creation of a website, get a business license, etc.
Remember, a business plan doesn’t have to be perfect. It’ll elicit more research from you which helps to make more thoughtful decisions. Let’s dive in.
Step 1: Describe what you do
This is the part where you make clear to potential clients and those around you, what you do. What services do you offer? What are your goals? What’s your ultimate mission? Why did you start the business?
Imagine this as an elevator pitch. You only have a few moments to describe your business to someone before they get to their floor. What do you say?
Step 2: Market analysis
Don’t let the terminology scare you. A market analysis is just identifying who your target audience is in the market, what their demographics are, and who your competition is. This can be as complex or as basic as you need.
Your target audience will likely be new parents or other businesses that could partner with you like a midwife, doula, or pediatrician.
Calling out their demographics can help you reach them easier. So, where they live, work, what age they are, what their interests are. If you find that you may find them in specific clubs, for example, it might be a great idea to join too.
Identifying your competition early is crucial for your business. Peruse their website, reviews, and social media. What are they doing that’s working and what could be better? This is a great way to begin shaping your own business.
Step 3: List your services
Now it’s getting fun. This is when you want to list out what you offer. It should include the services you’ll provide with detailed descriptions and the pricing associated.
Step 4: Marketing
Starting your business with little to no budget means that you won’t have money to allocate to marketing upfront, but you should start looking at alternative ways to reach your audience like joining community events, writing guest blog posts on connected websites, putting your information on relevant directories, etc.
Step 5: Plan your financials
You can absolutely start a business with zero money. But you still need to have a financial plan in place for when you start seeing an income. Ask yourself crucial questions like, how much revenue are you trying to reach? What services do you need to sell to get there? When do you want to start allocating money to marketing?
Keeping an ongoing balance sheet is very helpful and will help you stay on track.
Step 6: Executive summary
Many people put the executive summary as the first step, but the reality is it should be the last thing you do. This is taking all the information you’ve compiled to create a snapshot of your business. This can be great for describing your plans to others and simply getting them organized for yourself.
2. Register your business
Registering your business means that you’ll officially be considered a small business to the government. You’ll get a business license and a tax ID. This will allow you to open a bank account for your business and deduct expenses (yay!).
The first step is choosing a name. A few tips:
Keep it simple. You don’t want something long or an inside joke making it hard for people to remember.
Don’t play with spellings. If you’re coming up with a creative name for your business, keep the right spelling of words. If someone is searching for you later, misspelled words can make you harder to find.
Check the domain. You’ll likely want to create a website, so it’s important to make sure the name you want is available. Simply search for “domain availability” and several free tools will appear.
Choose your business structure
There are four different business structures to choose from. It’s important to evaluate each one to determine which fits your needs.
Sole proprietorship- This means you have full control and ownership of your business. The caveat is that your business assets and liabilities are not separate from your personal assets and liabilities.
Partnership- If two of you want to open a business, a partnership might make sense. There are different types of partnerships (limited partnerships, limited liability partnerships) that can affect who has more control over the company.
Limited liability company (LLC)- Among the most common for small businesses, the LLC structure allows you to separate your personal liabilities and assets from the business. But, you will be considered self-employed which means you’ll be required to pay self-employment tax contributions (these can be pricey).
Corporation- This separates the businesses from the founder including taxes, liabilities, and assets. You can view a corporation as very independent, living on even when the founder decides to leave.
There are also S-corps, B-corps, non-profits, etc but one of these four options likely fit with what you need.
3. Create a “storefront”
As a sleep consultant, you likely won’t have a brick-and-mortar location, but you still need somewhere for parents to find you and that’s when a website comes in. If you’re not familiar with website development it can feel daunting, but with the right tools and support, it’s a cinch.
Option 1: Build it yourself.
CMS platforms like WordPress, Shopify, and Wix make building a website much easier (and cheap!) than in the past. You could create a website for less than $100. With that said, if you’re a beginner it can get time-consuming and complex. Be prepared to watch a lot of Youtube videos.
Option 2: Hire a freelancer.
Prices range from a few hundred to a few thousand. This is a great middle-ground option that can result in a beautiful website in a short amount of time–no Youtube videos necessary. With that said, make sure to thoroughly vet each candidate.
Look at their portfolio
Read the reviews from former clients
Make sure you’re involved in every step
Ask them what host they plan to use
Pay in installments–part at the beginning and part at the end
Option 3: Hire an agency.
This may seem over-the-top if you’re just starting out and have no money invested. But, there are very affordable agencies out there. Likely, your website will be simple at the start so you won’t need the navigation, pages, and design that often hike up the price.
The downside of hiring an agency when you’re a very small business is that you might be one of many and turnaround time can be much longer. The upside is that you’ll have a team of professionals behind it.
A big question to ask both an agency and freelancer is that when they turn over the keys to your new, beautiful website, will they be available for any ongoing support you might need, and is there a cost associated.
4. Utilize social media
Without a huge budget to throw into paid ads, you’ll need to be creative and take initiative when marketing your new business. Social media is a great resource that will help get your name/business out there and begin building a brand.
Facebook, for example, is a great start with over 80% of moms using it above other social media outlets. Don’t go overboard, however, as research suggests that posting more than once a day can actually hurt your engagement. But, posting once per day will grow your 4 times faster than once a week. Remember, it’s about balance.
It’s important to diversify your content. Be creative with posts–share helpful tips, motivational memes, and instructional videos.
Instagram is another great resource to leverage. Even better, sharing content on Instagram stories can be linked to Reels on Facebook (2 birds!). With Instagram, limit posts to 2-3 per week unless it’s a story, which can be updated more frequently.
5. Network, network, and network some more
Many bootstrapped business owners will tell you that referrals are a huge part of their business. That’s probably because word of mouth is still held extremely credible among consumers. In fact, word of mouth results in 5 times the sales that paid ads. Moreover, 90% of consumers trust recommendations from friends and family, and 74% say it influences their purchasing decision.
Let’s make it applicable to starting a sleep consulting business. Imagine if you’re a new parent running on zero sleep because your baby won’t sleep. It would be comforting to have a good friend, colleague, or family member suggest someone that can help.
Be that someone. Put yourself out there to everyone you know and some you don’t. Connect with people on LinkedIn, join local organizations, volunteer, and sign up for platforms like HeyMAMA. This can also be great when looking for other business advice–you can lean on those who have been there before.
6. Start small
The idea of a business can often appear in our minds what it would look like in 5 years. Remember, everyone starts small. Put those major costs to the side, for now, and focus on what you need. Set benchmarks and goals for yourself–both long-term and short-term.
If the long-term goal is to quit your full-time job, for example, set smaller benchmarks that lead to it like getting 3 clients, building up your social media presence, or creating a website. This can help keep you on track.
And, if you feel you’ve hit a wall lean on others who have been there before. Most veterans in the space will want to help you navigate the exciting, stressful, challenging, and rewarding world of owning a small business.
