6 Steps to Starting Up a Business: Knowing the Basics
A lot of new business owners may understand the necessary effort to build a business from the ground up, but what they might not be fully aware of is that there are several steps you need to take to launch your own business.
Currently, there are at least 28 million small businesses all over the United
States. Small businesses are everywhere, which means that competition can be
tough. Needless to say, it’s important that you start your business right to
increase your chances of success.
The steps you need to take
Here are the most important steps you need to take to start a business
1. Research everything you need to know.
You probably have a genius idea on what to sell or promote since you’ve
decided to set up a business. The next step you need to take is to make sure
that it has the potential to succeed.
How to do that?
Simple. Your idea must solve a problem experienced by many people. It can
also be something that fulfills a need or that your audience will want. Once
you’ve identified that, you will also need to figure out who will need your
product or service. What is the competition like?
2. Create a business plan.
A business plan is a blueprint that will guide you from conception to
completion. It’s one of the most important things that a novice entrepreneur
must have to ensure success.
The goal of a business plan is to convince future investors to believe your
vision, your ideas.
The first thing you need for a powerful business plan is to have an executive
summary that will include basic information about your business, including
name, location, description of business, products and/or services, mission and
vision, and management team. You will then need a company description that
will outline vital information about your company, including how large it is,
what it is that you do, and what you hope to achieve. You will also need to
describe in detail your products and/or services. Aside from that, you will also
need to include a market analysis section that will provide an overview of the
industry you are in. A concrete outline of your marketing strategy, financial
analysis, and management summary must also be included.
3. Plan your finances.
While setting up a business doesn’t necessarily involve a lot of cash, you will,
however, need some initial investment, as well as resources to cover expenses
before you can make a profit. You will need to include estimates of startup
costs, including permits, licenses, legal fees, insurance, market research,
inventory, equipment, property leases, etc.
4. Decide on a business structure.
You can choose to set up a sole proprietorship, partnership, limited liability
company (LLC), or corporation. The business structure you decide on will have
an impact on your business name, taxes, liabilities, etc. You may choose to
start with a sole proprietorship and then change the structure as the need
5. Register a business name.
Choose your business name carefully, as this will represent your business and
your image. Consider all the necessary factors to ensure that you’ll be able to
decide on the best one.
Once you’ve picked out a name, check whether it is currently used and
trademarked by someone else. If not, the next step you need to take is to
register it with your state or county clerk.
6. Secure the required licenses and permits.
Paperwork can be a lot of work, but it’s an important part of making your new
business legal. Ask your state or county clerk about the necessary licenses and
permits that you need to apply for a start-up. Some of the most important
documents you need to secure include a health permit, intellectual property,
safety permits, and the like.
Remember, take one step at a time because there is no shortcut to success.