When you decide to start a business you leap of faith. Though you know your product or service helps others there’s a chance it won’t be noticed. This is a feeling 31 million small businesses feel at one point in their development.
This is why planning is necessary. You can’t start a company without a sense of the steps involved to gain clients and increase revenue. To do so is somewhat negligent and quickly leads you to give up. So, here’s a guide to starting your own business.
1. Market Research
Market research is important even if you feel what you provide is unique across all business sectors. Through this form of investigation, you find out if potential clients would invest.
This goes beyond a survey of your local area. With a majority of business now done on the internet, market research is needed within the digital marketplace. The answers you get determine the best ways to promote and sell your items.
2. Create A Business Plan
The business plan is like the foundation of a home. It’s the base from where everything grows. It sets your brand, your mission statement, and the avenues you take to get to success.
For instance, a business plan for a lifestyle company involves the customer aspects you want to work on. On the other hand, your business plan could start with a foundation of mental clarity and the products you offer to make it happen.
3. Establish A Company Name
Sometimes you know the name of your company long before you decide to start it. For others, it takes longer to come up with the proper identification. Whatever you do, pick the name that represents the company’s spirit.
Before you make it official you must do additional research to see if it already exists. Start with an internet browser search. If there’s a company with an existing name, then check its state or country of origin to see if it’s registered as an LLC or corporation. If so, then move on to the next name.
4. Fund The Business
You have the option to bootstrap your business until you develop the client and revenue base. However, this could take longer than finding the proper funding means. You want to review information from the Small Business Association (SBA) and financial institutions to see what they offer. A bank or angel investor could come around and help you get started.
5. Register Your Business
There’s nothing that stops you from running the business as a sole proprietorship. Yet, if you want to grow into a full-fledged company, then it’s best to register your organization with local and state regulators. Particularly if you want to establish a limited liability company (LLC) or a corporation.
6. Obtain The Necessary Identifications
Once you go beyond a sole proprietorship you’ll need an employer identification number (EIN) to separate the business from your finances and operations. This federal number allows you to open a business bank account, file separate taxes, and obtain funding. In some situations, you also need to register for a state employer ID number as well.
7. Create A Web Site
A website is critical if you want to sell your products or services on the internet. This is the virtual home for your business. It not only advertises what you offer but also lets potential customers know about you. This is important with current consumers, as they want to know what’s behind the items you place in the market.
It’s best to obtain a domain name for your company at the same time you build the website. Though hosting platforms create their URLs for you they relate to their company. In other words, it’s more professional to have people go to www.widgets.com than www.widgets.hostingplatform.com.
8. Open Up For Business
Don’t rush to open your business. Make certain all of the pieces are in place before you officially announce it online and in the real world. If not, then hold off while you tweak your mission statement or product offerings.
Finally, don’t give up if customers don’t overwhelm you in the first weeks. In the end, it’s always too early to quit an entrepreneurial endeavor.
