Starting a small business involves making critical financial decisions, planning, and doing a series of legal activities. It requires a step by step guideline involving business-oriented and creative procedures.
Sure, most people can start a business, but few can sustain it successfully, and that’s why each step is very important. A good business is just as good as its planning. You hence want to prepare entirely before starting a business to avoid joining the thousands of entrepreneurs who close their business in less than two years. Here is a step by step guide to starting a small business successfully.
- Conduct Market Research
Conducting market research is the first and most crucial step as it tells you if there is a chance of turning your business idea into a successful business.
You most likely already have a business idea on the type of business you want to start, and market research involves gathering information about potential customers and enterprises already operating in your area.
Ideally, your business should help to solve an issue, satisfy a need or offer something that has demand in the market.
- Make A Business Plan
Your business plan is a roadmap on how you will structure, operate, and grow your business. It is the foundation of your business, and you will use it to convince people to invest in your business or work with you.
- Plan Your Finances
Based on your business plan, you can now determine the amount of money you will need to start your business.
Come up with a spreadsheet estimating your one-time business startup cost, including licenses, insurance, branding, inventory, equipment, as well as the amount that will keep your business running for at least a year.
In case you don’t have enough money at hand, you can borrow the capital through small business loans, grants, crowdfunding, angel investors, and more. You can research here to determine what kind smb loan is best for your business.
- Select Your Business Location
Whether you are starting a brick and mortar business or launching an online store, your choice of location can affect the legal requirements, revenue, and taxes.
You should also consider whether to buy or rent your business space.
- Determine A Business Structure
The business structure you choose will influence many factors, including your business name, liability, registration requirements, and how you pay taxes. It can be a sole proprietorship, a corporation, a limited liability company, or a partnership.
- Choose Your Business Name and Register
Choosing a name for your business might not be as easy as it seems. You should choose a name that reflects your business brand and captures your spirit. The name should be unique and not being used by another business. Once you have the name, register your business to make it legal, and protect your brand.
- Apply for Licenses and Permits
Keeping legally compliant will ensure your business runs smoothly. You should hence apply for appropriate licenses and permits, which vary by location, state, industry, and other factors. Find out the licenses that apply to your business.
- Put Your Accounting System in Place
The accounting system helps you to create and manage your budget, set your prices and rates, file taxes, and conduct business with others. It is easy to open one if you have the right paperwork and registrations.
- Prepare Your Team
If you are planning to hire employees, take your time to decide on the positions you need to fill and job responsibilities for every position. If you are hiring independent contractors rather than employing employees, you should work with your lawyer to make your independent contractor agreement and start searching.
- Promote Your Business
Once you have your business running, you want to keep attracting your clients. You should hence explore small business marketing ideas to determine how you can most effectively promote your business.
Conclusion
Following these steps, one at a time will keep you on your way to owning a successful small business. However, you should know that success doesn’t come overnight. But the good thing is, by following the plan you have made to work on your business consistently, you will boost your chances of successfully starting and growing a business.
