If you’ve made up your mind about starting your own business, you probably already have a plan. It could be a unique service or a product that you believe is worth leaving your stable day job to work on. Starting a business is never easy and it’s not guaranteed to succeed. But being a successful and financially independent businessman is worth the risk if you plan it right. If you follow all the steps and do it smartly, you’re most likely to break even and then start making a profit soon after. We’ve made a guide with a list of steps to take when setting up a business.
Research Your Market
The first step in any venture is always to research. You have to know the market you will invest in. Learn if there’s a demand for your product, find out the target audience, and the size of potential customers in that particular market. Know more about the economic indicators like employment rate and income range. Finally, you need to know more about the competition and prices.
Write a Business Plan
Every new business should have a written plan. It’s like a blueprint or guide to turning your business ideas into a reality. There are business plan templates online. A traditional one is very comprehensive, especially if you plan on seeking financial support. You write out your company’s description, information about the product or service you will provide, the market analysis, management summary, and financial analysis. Lastly, you write the first section which is an executive summary of your business.
To start, you need to have money available to fund your business. It needs to cover start-up costs like licenses and permits, equipment, legal fees, insurance, trademarking, events, and more. Then you need money for the first at least the first year of operations before you start making a profit. It should cover the rent of location, staff salaries, utilities, marketing, and more. Every penny you will spend in the future should be planned for.
There are different ways to get capital, like financing, loans, grants, investors, and crowdfunding. You can take business loans and/or equipment loans as well. The lenders on this website state that taking out an equipment loan will give you the freedom to focus on growing your business with liquidity that would pay to get expensive equipment. Find reliable lenders in your area that would give you loans even if you’ve already taken other business loans.
Choose Business Structure
There are different business structures to choose from like a sole proprietorship, partnership, limited liability company (LLC) and or a corporation. You can pick one business structure then change it later with the changes the business goes through. The one you choose will determine the business name, liability, and taxes paid. You can consult a lawyer to help you pick the right one that works for your business.
Pick Name and Location
You have to be thoughtful when picking a name as it will be a representation of your business. If you’ve picked a good name, check if it’s already taken and if it’s not, register it. The method of registration depends on your business structure.
Your business location is the headquarters of all business operations. Pick something that works for you and your employees if applicable. It can be something from a home office to a commercial place, which you can buy or lease.
Get Permits and Licenses
You have to make sure everything is running legally before you launch your business. Apply for all the permits and licenses necessary depending on the business structure, location, and type of business.
Set Up an Accounting System
An accounting system is crucial in any type of business. You need to plan a budget, expenses, and prices of your product and services. It will also help you file your taxes. If you find it challenging to make an accounting system, consider hiring an accountant to take care of everything. Just make sure it’s someone reputable and reliable.
If your business requires employees, you should start recruiting before launching your business. Make sure the job duties and responsibilities of each employee is clear. Remember that your workforce is an important factor. Hiring a human resource (HR) employee is a good step as they can handle the rest of the recruitment process.
Now that you have planned everything, you can start the process of launching your business. Promotion is one more important step towards success. There are different channels and platforms to get the word out that you have a business worth checking out. It’s important to be patient if it’s not profitable right away. Work towards building a good reputation for reliable services to gain lifetime loyal customers.