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10 Steps to Starting a Business

10 Steps to Starting a Business

10 Steps to Starting a Business

If you’re thinking about starting your own business, you’re not alone. In 2019, around 30.7 million small businesses were operating in the United States. Launching a business can be one of the most thrilling and rewarding ventures you’ll ever undertake, but it’s also fraught with challenges. In fact, according to the U.S. Bureau of Labor Statistics (BLS), 20% of new businesses fail within the first two years, and only about 55% make it to the five-year mark.

The key to long-term business success often lies in thorough planning. Effective planning should begin well before you open your doors or launch your first ad campaign. While some factors, like economic shifts or unexpected weather, are beyond your control, there are specific steps you can take to increase your chances of success.

How to start a business in 10 steps

 

1. Clarify Your Business Goals

Start by refining your business idea. Ask yourself these questions:

– Why? What purpose does your business serve, and what needs does it fulfill? Be concise and clear about why you’re starting it, so you can easily articulate its purpose.
– What? What products or services will you offer?
– Who? Who is your target audience? Define their demographic traits, such as age, gender, income level, and location.
– How? What’s your strategy for delivering your products or services to customers?

Alternatively, you might consider opening a franchise, where the business concept and model are already established, allowing for a quicker launch.

At this stage, feel free to brainstorm business names, but don’t get too attached just yet. You can consult a marketing expert later to finalize a name, website domain, and tagline.

2. Create a Business Plan

A well-thought-out business plan serves as a roadmap, guiding your business from an idea to a fully functioning operation. It should address the why, who, what, and how questions mentioned above, and also include sections on business description, market strategies, competitive analysis, operational plans, and financial data.

Business plans can take time to develop and may evolve as you gain more knowledge. If you don’t plan to seek external funding, your business plan can be brief, sometimes even as short as one page. Here’s a business plan template to help you get started.

3. Conduct Market Research

Market research helps determine if your business idea is viable by studying customer behavior, economic trends, and competitor activity. This research informs your product development, pricing, and marketing strategies.

Use surveys, interviews, and focus groups to gather insights. Competitive research can also identify opportunities to set your business apart. Incorporate these findings into your business plan to ensure you’re on the right track.

4. Establish Business Structure and Logistics

Now it’s time to make critical decisions about the structure and logistics of your business, including:

– Business name and domain: Secure a unique, relevant name and purchase necessary website domains.
– Business structure: Choose between structures like sole proprietorship, partnership, LLC, or corporation. Consult a lawyer or accountant for guidance, as this decision affects taxes, liability, and funding.
– Business location: Decide on a headquarters and whether you’ll operate online, through a brick-and-mortar store, or both. Consider factors like foot traffic, parking, and local competition.

Once these decisions are made, handle the following administrative tasks:

– Register your business
– Apply for an EIN and tax IDs
– Obtain business licenses and permits
– Open a business bank account
– Secure any trademarks, copyrights, or patents
– Purchase insurance

5. Secure Funding

Determine how much funding your business will need. Start by calculating the costs to operate for a year, including overhead, production, and marketing expenses. Use a break-even analysis to assess profitability and set product prices.

You can fund your business through various means, including personal savings, loans, crowdfunding, or investment from angel investors or venture capitalists. Choose the best funding option based on your needs and the scale of your project.

6. Develop Prototypes and Gather Feedback

If you’re selling a product, work with designers and engineers to create prototypes. For service-based businesses, you may need to develop proprietary tools or processes. Test your offerings through focus groups or by enlisting volunteers to use your service and provide feedback.

7. Build Your Leadership Team

Assemble the team that will help bring your business to life. This could include co-founders, employees, freelancers, or consultants. Your team will also need to set up accounting systems, choose suppliers, and establish internal policies, including communication and handling of employee complaints.

8. Finalize Product Development

Once your product design is finalized, begin production. This may involve setting up a manufacturing process, installing software, or hiring specialists and managers. Establish quality control measures to ensure consistent, high-quality results.

9. Launch Your Marketing Campaign

Now it’s time to let the world know about your business. Develop a marketing strategy that includes your unique selling proposition (USP). Identify the best platforms and methods to reach your target audience, whether through social media, traditional advertising, or public relations.

Here are a few ways to get the word out about your new business:

– Social media ads
Google Ads
– Print advertising
– Radio ads
– Billboards
Online directories like Yelp

10. Plan for Growth

Prepare for success by developing plans to scale your business. This may involve hiring more staff, expanding product lines, or entering new markets. Be proactive in studying market trends and testing new ideas to stay ahead.

Starting Different Types of Businesses

If you have a specific business type in mind, here are guides for getting started with various business models:

– Bar
– Catering service
– Cleaning business
– Clothing line
– Coffee shop
– Construction company
– Food truck business
– Internet marketing company
– Landscaping business
– Pool cleaning service
– Restaurant
– Social media management
– T-shirt company
– Vending machine business

By following these steps, you’ll be on your way to building a successful business that stands the test of time.