Step 1: Get Inspired
All businesses start from a common
point - an idea. You may have dreamed of starting your own business for years,
or inspiration may have hit you unexpectedly. Regardless of the source, the
first step of starting your own business is coming up with a business idea.
Step 2: Do Your Research
You've identified your big idea, now
it's time to balance it with a little reality. Are you really ready to start a
business? The next stage of research you conduct in your small business
start-up process will help you figure out if your business idea has potential.
In order for a small business to be
successful, it must solve a problem, fulfill a need or offer something the
market wants. There are a number of ways you can identify this need, including
research, focus groups and even trial and error. As you
explore the market, some of the questions you should answer include:
- Is there a need for your anticipated products/services?
- Who needs it?
- there other companies offering similar products/services now?
- What is the competition like?
- How will your business fit into the market?
Don't forget to ask yourself some questions, too, about starting
a business before you take the plunge.
Step 3: Make a Plan
You need a plan in order to make
your business idea a reality. If you intend to seek financial support from an
investor or financial institution, a formal written business plan is a must.
Even if you don't anticipate seeking
financial support, a simple business plan can give you clarity about
what you hope to achieve and how you plan to do it.
In general, your business plan
should outline your business goal and the motivation behind them, as
well as your plan for reaching your goals in terms of marketing and funding.
Step 4: Plan Your Finances
Starting a small business doesn't
have to require a lot of money, but it will involve some initial investment.
There are a number of ways you can find your small business including:
- Financing
- Small business loans
- Small business grants
- Angel investors
You can also attempt to get your
business off the ground by bootstrapping, using as little capital as
necessary to start your business.
Step 5: Choose a Business Structure
Your small business can be a sole
proprietorship, a partnership, a limited liability company (LLC) or a
corporation. The business structure you choose will impact many
factors from your business name, to your liability, to how you file your taxes.
You may choose an initial business
structure, and then reevaluate and change your structure as your business grows
and needs change.
Step 6: Pick and Register Your
Business Name
Your business name plays a role in
almost every aspect of your business, so you want it to be a good one. Make
sure you think through all of the potential implications as you explore your
options and choose your business name.
Once you have chosen a name for your
business, you will need to check if it's trademarked or currently in use. Then,
you will need to register it. A sole proprietor must register their business
name with either their state or county clerk. Corporations, LLCs, or limited
partnerships typically register their business name when the formation
paperwork is filed.
Don't forget to register your domain once you have selected
your business name.
Step 7: Get Licenses and Permits
Paperwork is a part of the process
when you start your own business. There are a variety of small business licenses and permits that may
apply to your situation, depending on the type of business you are starting and
where you are located. You will need to research what licenses and permits
apply to your business during the start-up process.
Step 8: Set Up Your Business
Location
Setting up your place of business is
important for the operation of your business, whether you will have a home office, a shared or private office space, or
a retail location.
You will need to think about your
location, equipment, and overall setup, and make sure your business location
works for the type of business you will be doing.
Step 9: Choose Your Accounting
System
Small businesses run most
effectively when there are systems in place. One of the most important systems
for a small business is an accounting system.
Your accounting system is necessary
in order to create and manage your budget, set your rates, conduct business
with others, and file your taxes. You can set up your accounting system
yourself, or hire an accountant to take away some of the
guesswork.
Step 10: Promote Your Small Business
Once your business is up and
running, you need to start attracting clients and customers. You'll want to
start with the basics by writing a unique selling proposition (USP) and creating a marketing plan
Then, explore as many small business marketing idea as possible so you
can decide how to promote your business most effectively.
Once you have completed these
business start-up activities, you will have all of the most important small
business bases covered, and be ready for small business success.
