Tired of your day job? Well, have no fear, we have your back. It’s not that easy to set up your own business. There are a lot of steps to be undertaken, but we’ll offer a succinct plan about how to start a small business.
Follow these Steps to Successfully Start your Business
Do Some Research
If you already have an idea, it is now the time to see how it stands against some little reality check. There are some questions that need to ask yourself in order to advance: “Does my idea have the potential to succeed?”. This question addresses the purpose of your business idea and the potential service it provides. In order to do this, to answer your question, do some research first. See if there are other companies that offer the same service as your potential one. What’s the market (& its trend)? And how you would stack up against the competition. Keep this in mind.
Write a Plan
Now, after your research, it’s time to write the steps down. However, note that there are several business plans which cover different areas. There is the traditional business plan if you seek to get financial support from either an investor or financial aid institution. If you don’t, a simple one-page business plan will suffice. However, this is step is important when thinking about how to start a small business plan. So don’t neglect it. Words are key, so make the most use of them.
Make a Financial Plan
After the first two steps are covered, you need now to think of how to invest money in your soon-to-become business. So you need to 1) know how to invest and 2) how to cover expenses before you gain any profit.
This means that you must make a spreadsheet to estimate the costs for your startup. These costs include licensing, permits, equipment, legal fees, insurance, branding, research, trademarking, inventory, opening events, property lease fees, depending on your business’s physical address. Moreover, there’s also the foreplanning for the following 12 months (including employee and your own salary, rent, utilities etc.).
Choose a Business Structure
When thinking about how to start a small business, you must think of its type. Is it an LLC (limited liability company), a sole proprietorship, partnership or a corporation type of business? However, you can choose one type of business structure type and change it over time, depending on how fast and big it will grow.
Register the Name
Now, time to pick a name for your soon to be born baby. Make sure that you choose a really good one. The name should be catchy, easy to remember, and witty. It is hard, of course. But you wouldn’t want a company with the name “Drunken Turkey” (the bird, of course). After you choose the right name, make sure that it isn’t already taken. Otherwise, you won’t be able to register it, which is the next step in the how to start a small business journey. Remember: if it’s a sole proprietorship one, register it with the state or county clerk. If it’s a corporation or an LLC, after the formation paperwork is filed.
Choose an Accounting System
Confused on how to start a small business? Well then, accounting will surely make your head swirl. So: either establish it yourself or hire an expert accountant to help you up. This step is necessary nonetheless because it helps you create and manage your budget, set up your rates, pricing and file your taxes, among others.
Choose Your Location
Now comes the easier part on our path to finding out how to start a small business. Be it a small office, a shared or private office space or retail location, you need to figure it out. Why? Because depending on the space where you’re going to establish your small business depends the type of activity you’ll be doing. And vice versa.
Finally, assemble a good and strong team by hiring some people, conduct interviews. If you don’t know the workarounds, hire an HR expert to help you out with the recruitment process. This is important, of course, because you don’t want to hire incompetent people to do the job. No one wants this.
Following these steps will prove most handy and successful. However, if you want to find out in-depth how to start a small business, check out the official SBA site. Let us know how it worked out for you.
Image source: lynda.com