9 Step Process to Starting Your Business
Okay, so you have an idea you think will earn you some serious cash. But you don’t know where to even begin to start a business. No problem! We got you covered. Before the actual launch of your company it’s important to know the steps to take to get to success so here are the 9 steps to start a business!
Look at competitors, yourself, and potential market. It’s crucial to know who you will be competing with and how you can have the competitive advantage over them. Whether that be providing your good or service faster or cheaper (or if you are really awesome, BOTH).
It is also important to evaluate yourself and assess what skills you have that will be beneficial and not so helpful. Maybe you have strong leadership skills, but your financial skills lack. So you will just have to hire someone to do that for you.
We cannot stress this enough, do your research. Figure out who exactly you want to be selling to and marketing to. You might have to do more than secondary research of a population and send out surveys or do interviews with potential clientele.
Create a mission and vision. Having a specific goal and purpose can make the biggest difference between failure and success. Writing down exactly what you will be selling, who your target market is (this one is huge) and ultimately any goals you wish to attain. Creating a business plan here might be a good idea. (insert link to how to create business plan).
Calculating startup costs. Most new businesses fail because they run out of money before they start earning a profit. That is why it is almost better to overestimate startup costs and to secure financial backing.
Dealing with all legal issues early on. First being, deciding on a business form. There are really 4 main types of businesses; sole proprietorship, partnership, corporation, and limited liability corporation (LLC).
Then you must legally establish your business with the government. Submitting information to the government and IRS to officially register your new business entity. You need to make sure to get federal and state tax IDs and any other licenses or permits you will need for your business.
And lastly, get insurance. You protect almost all aspects of your personal life, why wouldn’t you protect your newest “baby.” Insurance can protect against theft, damage, customer lawsuits and more. So make sure you do this right away before the unimaginable happens.
Get monetary backing. Hard to start something from nothing. There are many ways to receive financial backing for your new adventure, but one great way is with our small business loans.
Hiring and choosing vendors. One of the most important aspects to a new business, it sets the tone and creates the culture of the company. You might love your best friend, but maybe you aren’t meant to be business partners.
There are so many third-party companies you can potentially do business with, from finances to logistics to transportation. At this step it’s important to find your break-even point to make sure your costs are as low as possible in order to earn a profit.
Location. Deciding on a location, whether that is physical or online, can make or break your business. Remember back to your market research and find where you will have the most success. For a physical location be aware of parking, competition, foot traffic, and ordinances.
Branding / Advertising. Building YOUR brand and who you will be as a company is essential for future sales growth and recognition of your business. Creating a logo can be the first step in this process. It also is a never ending task to stay current and relevant.
Launch and making sales. This is the last step, the point of no return. Well kind of, it’s time to show off all the hard work you have put into your business. But don’t think that is the end of the hard work as an entrepreneur. Building your business will be your way of life. Probably the most important aspect to this is actually LISTENING to your first customers. What are you doing good and what are you doing not so well? From there alter and improve your product and service.
In all it’s going to come down to doing your research, planning everything (but being open to the unexpected), and putting in hard work to promote your newest adventure in life!
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