Starting a business is very easy for a few people but very hard for the majority. This is because the business world requires people with eyes trained to spot opportunities as they arise. If you are blind to opportunities, you will never be an entrepreneur.

You may start a me-too business but that will never reward you as coming up with an innovative idea that is market-oriented.

Businesses are not built blindly without realizing a need in the market. You have to spot a crisis in society and this is what creates an entrepreneurial opportunity.

The problem we have today is idea imitation. Everybody starts something that is already in existence. Furthermore, they do it the same way everybody else has been doing. There is no sense of creativity and innovation. This is why many businesses fail.

If you look at the social media industry, the social media sites that have succeeded are much differentiated. LinkedIn targets professionals, Twitter is used mostly for trends and politics, Instagram focuses on pictures and this is why it is very effective for fashion, food, and **.

Snapchat is used by teenagers mostly. Facebook is used by everybody else. This is what is called differentiation. All of them are social media sites but they are very different when it comes to their target market and use.

Even if you cannot come up with a new idea, just modify an existing one and bring a sense of newness in the industry. Everyone loves working with a creative business.

We have to stop imitation and start innovation. This is the only way your business is going to survive in this competitive marketplace.

For you to start a business there are 4 major steps that you have to undergo. Let us discuss each.

1. Idea generation

The first step is to come up with an idea. As we have pointed out, the idea should be innovative even if not creative. Innovative means a modification of an existing idea.

Without innovation, you will spend millions in marketing for your business to stand out from the rest.

An innovative or creative idea should solve a need in society. As Jack Ma says, when people complain, there arise opportunities for entrepreneurs. This is very true.

When the average person encounters a problem, they complain and do nothing about it. When entrepreneurs encounter challenges, they come up with an innovative or creative way of solving it.

In short, entrepreneurs think of solutions, not challenges.

Good ideas are generated when least expected. They come in the middle of the night, when taking a walk or even when reading a book or article that stimulates your mind.

I have had my greatest ideas as I relax on my bed. This is after listening to an inspiring video or reading a motivating book.

However, as we pointed earlier, your mind has to be entrepreneurial. This means that it has to be trained to spot opportunities.

This happens after you get an encounter with other entrepreneurs that changes your perspective. You can read more about this in our article titled The Making of an Entrepreneur.

2. Due diligence

This is the research stage. You need to find more about your idea. There is a likelihood that the idea has been tried by someone else somewhere unless it is a creative idea.

You need to learn what happened to those who did it before you. You need to know why they failed or why they succeeded.

This will allow you to look for loopholes in the market. After realizing what others are doing, you can make improvements. This is innovation. It will give you an advantage in the marketplace.

3. Mobilization of resources

After you have done your research and identified areas that are underserved by the current market participants, you need to mobilize the requisite resources.

You need to figure out how to raise finances for your intended venture. Human capital is also needed.

When it comes to raising capital, you can use your savings. It is very advisable to use savings when starting a business. This is money you can afford to lose without being answerable to anyone.

The second best option is to borrow from friends and family. This is because such will rarely charge you interest or auction your properties in case you default.

It is not advisable to borrow from a bank. At this stage, you are not sure whether the idea is viable to you and your target market. Banks do not care about you.

They will need money every month. This is not good because businesses start by making losses rather than profits.

Also, banks charge interest on loans. Even if you make a profit from the word go, the profit will be eaten up by the interest payments and the prospects of growth will be jeopardized.

Assume you get a 10% profit margin and the bank’s interest rate on the loan is 14%. This means that you are losing rather than gaining.

You also need to mobilize human resources. These are the people who will help you implement your idea. It is not advisable to hire employees from the first day. You can ask your relative to come work with you and promise them future gains.

You can also ask your former classmates and friends to join in. If they are unemployed, they will never object to this idea. This ensures that you are not financially constrained.

Any revenues you get should be plowed back to grow the business. This is a way of reducing your expenses.

4. Business registration

This is now the actual formalization of the business. This is done according to the legal procedure of your country. Different countries have different procedures and charges when it comes to business registration.

You should also choose which form of business you want to register; either a sole proprietorship, a partnership, a limited liability company, etc.

This is very important because it affects how you do business. The applicable laws are different for each. We will do an article in this area and help you understand more.

5. Start operations

After all is said and done, you need to get down to work. This is the beginning of your life in the business world. You will start learning by experience.

You will experience challenges, have sleepless nights, face threats from creditors, and encounter changing political and economic environment. These changes can either kill or grow your business.

If you have enough will and desire to grow, you will. You need to continue learning; both from experience and books.

This is what will help you overcome in this tough and unforgiving capitalist system and competitive world. Read our article on success factors for young entrepreneurs.

Conclusion

It is very rewarding to start your own business. The experience comes with freedom and some sense of accomplishment and pride.

However, you have to be willing to give above average effort. It cannot be 8/9-5. Every day is a working day and every moment a working moment.