Not every business can survive in a recession, but – with the increasing need for welders – this may be the perfect opportunity to start a welding business.
But, how do I start that? What steps do I need to take to open a business?
Whether opening a bookstore or a welding shop, there are 4 steps that all potential business owners need to take in order to start their business off right.
Image Source: Nathalie Magniez
4 Steps You Must Take to Start a Welding Business
1. Research and plan your business
Basic questions that must be answered include:
- What is the demand for my services? Assessing whether there is a need for your service is extremely important. It would be like opening a coffee shop in an area with 10 Starbucks. Unless the coffee is exceptionally great and their marketing campaign blows Starbucks out of the roof, they would probably have a hard time drumming up business. However, if you still think that your welding business can thrive despite the competition, just keep this in mind:
The key to success is to find a way to stand out, to be the purple cow in a field of monochrome Holsteins.
– Seth Godin
Basically, make sure your business sets apart from the crowd!
- Am I going to operate locally, or do I want my business to service many states, all of the US, international clients, etc.? This would depend on the type of welding business you open up. It would make better sense to work locally if your welding business is a repair shop, but if your business is to sell welding tools and supplies,you could probably work on a national scale.
- Who are my customers? Are they everyday people looking for a quick welding repair job, or are my services catered towards big businesses?
- How am I going to price my services? This is a big question that must be answered after serious thought. What do your competitors charge for similar services? Are those prices fair, or do you think you can complete the same jobs for less? Maybe you can compete the same job at a better quality for more money. You determine what the prices are, but keep in mind your customers. If they can get the same job done somewhere else for less money, you many have a hard time charging higher rates.
2. Create a Brand
Who is your business?
What is the name?
Is there a motto that you stand by?
These questions should not be answered lightly. Your brand is everything in today’s market. From Nike’s “Just do it” to McDonalds’ “I’m lovin’ it,” customers can easily identify and even relate to companies with a well thought out brand model. You want to be professional.
3. Secure Funding
The best way to go about this is to find potential lenders and investors. Have your business plan ready to explain to potential lender and investors why your business will work in today’s market.
Picture Credit: ThinkPanama
Also, you can save up the money yourself. The best I’ve heard about starting a business comes from Susan Ward via About.com:
Start your business while you’re still employed.
How long can most people live without money? Not long. And it may be a long time before your new business actually makes any profits. Being employed while you’re starting a business means money in your pocket while you’re going through the starting a business process.– Susan Ward
Once you have a plan, a brand, and some money, it’s time to. . .
4. Focus on marketing!
It really doesn’t matter how great your business is if no one has heard of it. Don’t expect people to just stumble across your website via Google; take the initiative to let the public know about you. There are many ways to market your business. You can use social media (Facebook, Twitter, etc.), you can pass out promotional fliers (some even offer a discount for a certain amount of time for new customers), or you can take the old school and try “word-of-mouth.” That method is a lot slower, but you’re likely to gain many loyal customers from it.
These steps provide just a small picture of what it takes to start a business. Of course, you will need to know legal information (like what permits you may need to set up shop locally, tax issues that you need to take care of, codes and regulations for hiring/firing employees, etc.), but with this little bit of information, hopefully you can begin to map out a future for your welding business. You can find a few more tips and information on starting a welding business on WeldingTipsandTricks.com.
For those of you who have started the process becoming entrepreneurs (or are already entrepreneurs), let us know how the experience is working out for you. Do you have any advice, tips for starting a business? What would you have done differently in your journey?