While working at a 9-to-5 job, have you ever daydreamed of one day owning a business and being your own boss? Many people are drawn to starting their own business because of the many benefits, including independence, flexibility, control, and financial gain.
However, starting your dream business is no easy feat and requires a lot of work. If you are determined to quit your current job and make it as a business owner, here are some ways to build a business:
5 Steps to Building Your Dream Business
Step 1: Start with your why.
Evaluate what's important to you and why you want to start a business in the first place. Here are some of the reasons why people choose to become self-employed:
- Freedom and flexibility. The ability to spend more time with family, the chance to travel, the freedom to pursue passions, and the opportunity to work in their community are the primary reasons why some people opt to start a business.
- Making a difference. Some people open their own businesses to address a need within their community. This hits two birds with one stone—making a positive difference in the world while making a profit.
- High financial gains. Since money is needed to invest in the business, it is only natural that entrepreneurs expect to earn money for their investment, to continue financing the company, and as a reward for the risks. Money may also reach goals you have for yourself.
- Personal fulfillment. When a business becomes successful, it gives the owners a sense of achievement.
Step 2: Do Your Research.
Before starting a business, you need to do research to find out if your dream business is viable. Here are some things you need to know:
- Competition. By studying the competition, you can learn from their mistakes and wins, what their customers appreciate, the price people are willing to pay for a product or service, and how to enhance what's currently being offered. If the market is fragmented, this could be an opportunity for you to come up with a brand or product that becomes the consumers' only choice.
- Target audience/market. When doing business, you need to focus on a specific group of people you can serve. Create a customer persona or conduct market research by sending out surveys via social media or hold focus groups. Once you have your target market, get them involved in the development.
- Your business name. Most people take this for granted, not thinking that rebranding in the future is difficult and expensive. Think about what you want your name or brand to say about your business.
- Write a business plan. A business plan is the foundation that will help you in structuring, running, and growing through each state of your business.
Step 3: Build a Minimum Viable Product.
A Minimum Viable Product (MVP) is your product in its fundamental form. The MVP's purpose is to demonstrate your product, how it works, and how your target audience will respond.
An MVP is also a way to launch a product with a small budget while collecting initial feedback from the first product. By building an MVP, you save time and money while collecting maximum quality feedback. Here's how to create an MVP:
- Research the market
- Watch out for rivals
- Define the user flow through a diagram
- Highlight your MVP's features
- Design and develop your MVP
- Get feedback, learn, and edit
Step 4: Iterate or Pivot.
To iterate is to conduct minor changes to the current product or business model to improve it and capitalize on the market, while pivot is the wholesale change of the present business model to capitalize on a different market opportunity.
Step 5: Plan Ahead.
Once your business is up and running, you'll need to protect it by getting insurance coverage from a reputable insurance company. An insurance policy is crucial because it can save your company from a potential mishap that can easily wipe out your assets and, in the end, ruin your business. It also protects customers and employees from any harm should something unfortunate happen.
Fortunately, BPI AIA offers Filipino business owners several insurance plans that they can avail including bancassurance. Bancassurance is an insurance product offered by banks. Below are the types of insurance you would need:
- Workers' compensation insurance - This protects your business and employees by ensuring that they receive medical treatment and are rightfully compensated for a workplace injury.
- Group life insurance - This insurance is provided by the company to its employees as part of their benefits until the employee leaves the company. The business owner retains ownership of the policy
- Group accident insurance - The insurance protects employees from financial burden from loss or inconvenience caused by a death, dismemberment, or disability.
- Key man insurance – A key man may refer to your business partner, executives, or even you. Should one of you die, the insurance protects the company from damages due to the loss of an important member of the Company. The insurance proceeds can be used to cover for the losses until a replacement can be found or until the company can settle all debts and close in an orderly manner.
- Property insurance - Property insurance protects your company's infrastructure from fire, flood, vandalism, theft, and other natural disasters. It also covers the repair or replacement of business properties and assets.
- Cyber liability insurance – This insurance protects against cyberattacks and breaches of data security systems.
Safeguarding the Fruits of Your Labor
There are many complicated steps involved in starting and running a business, but the rewards are totally worth it. Since you've worked hard to start your business, it is only right that you protect it from anything that can potentially force it to close.
If you are thinking about running a business or are already in the process of launching your company, talk to an expert who can guide you in the right path. Schedule a virtual appointment with BPI AIA's Bancassurance Sales Executives to learn how they can help you build your dream business.