7 Steps To Starting A Small Business
Step 1: Think Of A Brilliant Idea
Every business starts as an idea. Then you add your hard work, this turns it from an idea to a real-life venture. Before you invest your money, time, and energy though, proactively review and implement the few next steps to ensure your success.
Step 2: Conduct Market Research (but don’t get discouraged)
Next research your idea. This will most likely start with a Google Search. Market Research will give you insight on whether this is just a brilliant idea for you; or for others too. Research your future customers and competitors to help avoid costly mistakes. Every business comes with risks, but some can be avoided by researching.
Don’t get discouraged. Some see an ocean of competitors and give up at this first step. Don’t! Improve upon, find differentiators, be creative. Your idea has a place just niche down to distinguish it.
Step 3: Create A Business Plan
After a your research and informational interviews with others are conducted, start writing a business plan. This will set you up for success. There are two types of business plans—traditional and lean.
A traditional business plan will be longer and include formal documents. Often this is required if your business needs capital, or loans, to get it off the ground.
A lean startup plan is shorter and can be done in as little as an hour.
Both business plan strategies are a step towards success. Within your business plan you will determine your pricing strategy for the service or products you sell. The right strategy will make your business grow faster and stronger.
Starting a business means coming up with your own name and brand. This includes everything from your mission statement to your typography. Once you’ve decided what makes your brand, you need to set strict brand guidelines that will be present in everything you do. See our Brand Story Planner for help with this.
Step 4: Set A Business Goal(s)
Your business plan can be considered your boat for your seaward adventure, but your goals are your destination stops along the way.
If you want to enjoy the island of success, clarify your goals. Set SMART (Specific, Measurable, Attainable, Relevant, and Time Based) goals that lead to better objectives and tasks. It’s the best way to achieve what you want in your business.
Step 5: Create a Financial Forecast
Know your runway. How long until you get your boat can set off for sea or you can lift your plane off the ground? Do you have the financial runway and the personal discipline to put in the hard work?
Establish what your costs might be to create your product or service, staff your business, and /or office space. Expect these number to be higher than you plan 😬so build a cushion into your runway.
Business costs will vary widely depending on the business and industry, have an idea of the cost before you look into funding.
Step 6: Choose A Business Structure & Acquire Your Business License(s)
Once you have your plan, your brand, and beginning operational infrastructure in place, it is time to make your business legal with a Business License. Each business structure comes with its own benefits. Research the different structures in understanding and designing the perfect business structure in one of our other blogs.
Just like you need a license to drive a car, you need a license to open your business. This is where you take your plan, goals, and funding to become an accredited company. Depending on where you live, where you’re operating, and the kind of business you open, you may need more than one. Licenses limit your liability and let the government know how much money you’ve made. There are a lot of licenses, but you won’t need them all. Contact us for a complete checklist for this process.
7. Make Your First Sale
Once you’ve got some (you never have everything complete) of the mechanics you need, two things are monumental for business owners — getting the first sale and getting your first repeat customer.
We can’t wait to help you out with both!
