In this age of capitalism, starting a business sounds like a great thing to do. However, many people do not know where to start. In fact, “how to start a business” is one of the most searched-for queries on the internet for a reason. It is a daunting act. You have to sacrifice your time, money, and energy for an idea that might not come to fruition. That is why it is good to know a process you can follow to ensure success. In the following paragraphs, a step by step guide on how to start a business will be given.
The first step in starting a business is doing research. You have to investigate your business idea, explore the market for your concept, look into your competition, and more. According to The Balance, there are a few questions you should ask during the research process: “Is there a need for your anticipated products/services? Who needs it? Are there other companies offering similar products/services now?What is the competition like? How will your business fit into the market?” (Gregory, Alyssa). Without this research and inquiry process, you might be making a business without any foundation.
After you have conducted research, you are now ready to create a business plan. As stated by Business News Daily, “A business plan helps you figure out where your company is going, how it will overcome any potential difficulties and what you need to sustain it” (Conlin, Bennett). Take your time while creating a business plan, as it needs to be thorough and reviewed by peers in order to be taken seriously.
Next in line is planning your finances in relation to your business. According to The Balance, “Starting a small business doesn’t have to require a lot of money, but it will involve some initial investment as well as the ability to cover ongoing expenses before you are turning a profit. Put together a spreadsheet that estimates the one-time startup costs for your business (licenses and permits, equipment, legal fees, insurance, branding, market research, inventory, trademarking, grand opening events, property leases, etc.), as well as what you anticipate you will need to keep your business running for at least 12 months (rent, utilities, marketing and advertising, production, supplies, travel expenses, employee salaries, your own salary, etc.)” (Gregory, Alyssa). Thus, you need to be financially secure before starting a business, as the risk of losing money is too high to be frivolous.
Subsequently, you need to pick a business structure. You can choose from several options: a sole proprietorship, a partnership, a limited liability company, or a corporation. The structure should fit with the needs of your business, and you might need to hire a specialist to determine the exact structure that fits best with your concept (Conlin, Bennett).
It gets more exciting and realistic as you choose and register a business name. According to Forbes, “Finding the right name for your startup can have a significant impact on your success. The wrong name can do worse than fail to connect with customers; it can also result in insurmountable business and legal hurdles. In contrast, a clear, powerful name can be extremely helpful in your marketing and branding efforts” (Harroch, Richard). Choose your business name wisely, as it can be a great advantage to you.
Next, you will have to obtain the proper licenses and permits to own a business. Check which ones you have to apply for in relation to the structure of your business. Be thorough with all of the information you need to send to governmental and financial institutions (Gregory, Alyssa).
Though it may sound tedious, but you have to choose an accounting system as well. As stated by The Balance, “Your accounting system is necessary in order to create and manage your budget, set your rates and prices, 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. If you decide to get started on your own, make sure you consider these questions that are vital when choosing accounting software” (Gregory, Alyssa). Without setting up an accounting system, you can easily lose money and run an inefficient business.
The crucial next step is setting up your business location. You might have a home office, a retail spot, or a shared or private office space. In addition, you will have to think about buying, renting, or leasing a place for your business (Gregory, Alyssa).
The penultimate step is gathering a team. You will need to hire people you can trust and that are solid in their work experience in order to lift your business off the ground. You will also have to figure out the salaries for each position, and what you can afford in terms of the size of your team (Conlin, Bennett).
For the last step, you need to launch your business with the proper amount of advertising and security of your finances. According to Business News Daily, “Collaborating with more established brands in your industry is a great way to achieve growth. Reach out to other companies or even influential bloggers and ask for some promotion in exchange for a free product sample or service. Partner with a charity organization and volunteer some of your time or products to get your name out there” (Conlin, Bennett). Do whatever you can to make the launch of your business a success.
This has been a systematic run-down of how to start a business. If you follow these steps accordingly and work with professionals in launching businesses, you will have a greater chance of success.
Gregory, Alyssa. “Starting a Business.” The Balance Small Business, www.thebalancesmb.com/starting-a-small-business-4161641.
Conlin, Bennett. “A Step by Step Guide to Starting a Business.” Business News Daily, 19 Mar. 2019, www.businessnewsdaily.com/4686-how-to-start-a-business.html#write.
Harroch, Richard. “12 Tips For Naming Your Startup Business.” Forbes, Forbes Magazine, 24 Oct. 2016, www.forbes.com/sites/allbusiness/2016/10/23/12-tips-for-naming-your-startup-business/#2265a32d904e.