As spring comes we tend to come up with new ideas or activities that we want to try. We are more than sure that some of you started to think about starting your own business at some point. Here are 10 key steps that could help you to start new business!
1. Use market research to find potential customers
Market research will let you know the consumer’s behavior and economic trends and then leads you that how your business idea will work? It is one of the most important steps to start new business. If you know your consumers base from the outset, then Market research lets you reduce risks.
To get a better understanding, start collecting demographic information for gaining customers. The demographic variables include Age, Gender, Education, Wealth, Family, Interests, or anything else that’s relevant for your business.
To get a competitive edge over your competitors, you should work on Competitive analysis. This will help you to learn from businesses competing for your potential customers.
2. Write your business plan
A business plan is one of the most important steps to start new business. It is the building block of business. With a good business plan, you will easily manage your business at each stage. Business plans also help you get funding and bring on new, trusted business partners. If your business plan is right, then investors feel confident about seeing a return on their investment. So, smartly pick a business plan format that works for you that helps you shortly.
One of the important things is how your plan meets your needs?
There are most commonly two categories of business plans: traditional or lean startup.
Traditional business plans are a very detailed plan and comprehensive. These use a standard structure, require more work up front, and encourage you to go into detail of each section.
Lean startup business plans are not so frequent but still have a standard structure. They focus only on the most critical points of the essential elements of your project. For these plans, some lenders and investors may ask for more information.
It would be best if you had a good understanding of your industry outlook and target market. This will lead you to know what other businesses are doing and what are their strengths? It would be best if you looked for trends and themes like a successful competitor.
3. Fund your business
To start a business, you need money. The most important part is how you will get Funds for your business? One of the most important factors is how you choose to fund your business? Your funding mostly affects your structure and determines how your business will run?
So, first, determine how much funding you’ll need for your business? It should not be a “shotgun approach” rather than it should be a “rifle approach.” Your financial situation and will let you shape the economic future of your business. You can get funding from two sources:
Fund your business yourself with self-funding
Self-funding is to turn your family and friends for capital, using your savings accounts, etc. With self-funding, you have full control over the business, but the risk is all yours. Be careful when you are spending money and do not spend more money without any proper plan.
Get venture capital from investors
As one of the important steps to start new business you should look for Investors who give you funding in the form of venture capital investments. You will get Venture capital in exchange for an ownership share and the investor’s active role in the company.
4. Pick your business location
You’ll have to decide where you will put your business strategically? Like in which state, city, or in your neighborhood? Your target market, partners, and your preferences let you know the location of your business. While deciding a place for your business, you should consider the selling costs, benefits, and restrictions of different government agencies.
5. Choose a business structure
Does the business structure influence how much you put your assets at risk? Always choose a business structure with the balance of legal protections and benefits. The money you pay in taxes, your ability to raise money, the paperwork you need to file, and your liability affects the business structure. Before registering your business with the state, you need to choose a good business structure. You may also need a tax ID number and file for the appropriate licenses and permits for starting your business.
6. Choose your business name
Again one of the biggest steps to start new businessis to choose the right name for your business. The name of your company gives consumers an idea of how your product will behave during usage. So, after selecting a title, protect it by registering it with the right agencies. Your business name reflects your brand identity and should clash with the types of goods and services you offer.
7. Register your business
To do your business, a distinct legal entity registers your business. Your business structure and business location will decide where and how you need to register your business? Determine your business structure and location, and then your registration becomes very straight forward and easy.
If you don’t register your business, you will miss out on personal liability protection, legal benefits, and tax benefits. If you are running a small business, then register for your business is as simple as registering your business name with state and local governments.
8. Register with federal agencies
If you want to trademark your business, brand, or product name, then register with the federal government to become a legal entity. Most of the small
companies register with the federal government for trademark protection.
You can register your business as a tax-exempt entity (with IRS) to get tax-exempt status for your non-profit corporation.
9. Apply for licenses and permits
If your business activities are regulated by a federal agency, then you need to get a federal permit. Most of the small businesses require licenses and permits from both federal and state agencies. The requirements and fees for licenses and permits are based on many factors like your business activities, location, and government rules.
10. Open a business bank account
One of the most important steps to start new business is to set up your business account, then open a business account to accept or spend money as per your requirements. Your business will be legal and protected with a business bank account. It also provides benefits to your customers and employees.