Starting a Small Business in Nine Steps
According to official statistics, more than 30 million small businesses in the United States account for more than 99% of total US trade. So when you start a business with a unique idea, professional design, and flexibility to grow, you are getting ready to enter a sensitive marathon with a path full of milestones.
But not every small business will succeed. In fact, only about two-thirds of new companies last between two and five years, with a lot of effort! So it would help if you get ready to take on a real challenge when you decide to immerse in your new idea. Preparing to start a business must be preceded by any other practical action.
Here are ten steps you need to take to begin a successful job. Take one step at a time to move on to the success of the small business you own.
Step # 1- Do a thorough investigation to start tour small bussiness
Most likely, you have already identified an idea for starting a business, so now is the time to face reality by asking yourself a question: “May my concept succeed?” Before you go any further, you need to analyze your idea through the validation process.
If you want your small business to succeed, note it must solve a problem, meet a need, or offer what the market wants. There are many ways to identify the need, including researching target groups, landing pages, trial and error, etc. As you search the market, some of the questions you need to answer are:
- Is there a need for your anticipated products and services?
- Who needs it?
- Do other companies already offer similar products or services?
- Who are your competitors?
- How to market your product in the right way?
Be sure to find the answer to these questions before you start.
Step # 2: Create your business plan
A successful enterprise requires a business plan which sets up your market and ensures its growth and development. This is one of the most critical steps in building a business, big or small.
The good news is that you are not the first to think about creating this plan. Many people have gotten through this stage and have created different types of business plans. These templates are available for a variety of businesses.
If you are looking for an investor to implement your plan, you need an ideal plan. However, if you do not need financial support, then a business plan is a roadmap to success. Reaching a destination without a map is either impossible or requires a lot of time and capital.
Step# 3: Business Financial Planning
Most small businesses do not need many resources. However, if you do not have the technical knowledge and your business is related to software, you will have to pay a third party to produce it. Some jobs also need workshops or electronics.
Learn more: Is It Possible to Launch a Successful Startup Without Technical Knowledge?Is It Possible to Launch a Successful Startup Without Technical Knowledge?
However, it is crucial to have a page that estimates the financial details of your job. You must calculate the cost of licenses, equipment, insurance, business registration, rental property, etc., for at least one year.
Step # 4: Select the business structure and check the legal requirements.
Your small business will have a specific structure. C Corp, S Corp, Partnership, Proprietorship, LLC, and even a simple group are some of the different business structures.
The business structure greatly influences your business’s division of responsibilities, financial needs, and overall future. To determine the structure, you can consult with an investor, lawyer, or anyone else who is more involved in this field than you. After selecting the initial structure, you can change it based on your values.
Step# 5: Select and register your brand.
Your business mane is your company identity. That’s why you need to think about all the consequences and aspects of it. After the initial selection, you must make sure that the same name’s trademark is not active in the market. After this step, you must register this name legally.
Step# 6: Get the permissions.
You need to research what licenses and permits your business needs. The rules vary depending on the company region and each country’s laws. Although not pleasant, bureaucracy is one of the inevitable things to start your own small business.
Step #7: Choose the right accounting system.
An appropriate accounting system is needed to manage your budget. Set prices, deduct taxes, and other expenses to make a net profit. If your business is not very complex, you can use accounting software. However, you will probably have to hire an accountant in the future.
Step# 8: Find the right place for your business.
If your business is through software, you may not need a specific place to work at first. But in any case, by hiring more employees in the future, you should probably find a suitable place for your team.
Step #9: make your team.
Now you need to make a list of the specialties you need and start interviewing and hiring. Using freelancers and telecommuting staff reduces some of the costs.