This guide to starting a business will help you realize your dream of having your own business this 2019. According to the Small Business Administration, there are more than 28 million micro businesses in America. This number comprises 99.7% of all the businesses in the U.S. Surprising, isn’t it? No wonder small businesses are everywhere, giving hope and inspiration to people who want to change their lives.
Guide to Starting A Business: Reasons to Start
There are many reasons why people choose to start their own business. One is that they like to see the potential of their unique business idea. Another is that they are seeking for an endeavor that will grow with them, hence advancing their career. Other reasons include financial independence, self-fulfillment, create jobs for others, and more.
However, you must remember that not all businesses are positioned for growth and success. As a matter of fact, only two-thirds of small businesses with employees survive the 2-year mark. Out of the remaining number, only half survives 5 years. This means that you are up for a real challenge once you decide to start your own business and dump your day job.
My 7-Step Guide to Starting A Business
The beginning is usually the hardest part of any undertaking. Still, you can set the foundation for success when you follow proven startup building strategies. I have written a simple 7-step guide to starting a business so I can help others set their path.
Step 1 of 7-Step Guide to Starting A Business: Do your market research
The next step after having a business idea is doing a reality check. Do you think your idea is feasible for success? You must run your business idea through a validation process to know the answer. There are 3 elements of a successful small business. These include offering something that your market wants. Another is fulfilling a need. The last element is providing a solution to a problem.
Ask yourself several questions first before you take a plunge. Is there a need for your product(s) or service(s)? Who needs your offer? Who are your competitors? How can your business fit to the market?
Step 2 of 7-Step Guide to Starting A Business: Create a business plan
The next important step is for you to create your business plan. This is going to be your blueprint from the startup phase to the establishment phase, and eventually, to the growth phase. A business plan is a key requirement for all businesses.
There are various types of business plans, and I will assign a separate blog post for these.
Step 3 of 7-Step Guide to Starting A Business: Evaluate and plan your finances
Your financial resources are crucial in starting your own business. You have to be aware of the initial investment that you need. Likewise, you must have the means to cover for operational expenses before you begin raking profits. So, I advise my clients to be highly organized in this area. Put together a spreadsheet documenting your one-time startup costs. These include your permits and licenses, grand opening, etc. Moreover, you must clearly anticipate the amount you need to run your business for at least 12 months. This covers your rent, utilities, marketing, etc.
Next, consider funding. You can look into financing, small business loans, small business grants, crowdfunding, and angel investors. You can also consider starting your business with your limited resources. This is called bootstrapping.
Step 4 of 7-Step Guide to Starting A Business: Choose a business structure and register your business
Your small business can fall into any of the 3 structures. It can be a sole proprietorship, a partnership or a Limited Liability Corporation (LLC). Remember that the structure you will choose will affect your business greatly. Your selection of a business entity has a direct impact on your business name, liability and tax payments. As your business grows, you may opt to alter the structure of your business.
I recommend seeking the advice of a business consultant once you are on this step to make sure you’re choosing the right option. This way, registering your business and obtaining the required permits and licenses become easier.
Step 5 of 7-Step Guide to Starting A Business: Set up the location of your business
The next thing you need to consider is the place of your business. Are you going to have a home office, shared office, private office, or a retail office? You need careful evaluation of your requirements. Would it be better to lease or to buy a commercial place? Does your choice of location fit the nature of your business? You also need to think of your equipment and overall setup.
Step 6 of 7-Step Guide to Starting A Business: Hire your team
You’re one step closer to launching your business. Now, what you need to do is to decide between hiring full-time or outsourcing work to independent contractors. Whichever you choose, make sure you have an outline of the positions you need to fill. Furthermore, clarify the job responsibilities for each position. You must also work with an attorney for your Independent Contractor Agreement (IDA).
On the other hand, solopreneurs should hire a professional business coach or mentor for guidance. This is extra beneficial for first-time business owners.
Step 7 of 7-Step Guide to Starting A Business: Promote your small business
Here comes the exciting part of this startup business guide – your launch! Some business owners consider hiring an event coordinator for this. Then after the glitz and glamor of the ribbon cutting is the more important aspect of running a business – marketing and promotion.
Start with the basics. Draft a Unique Selling Proposition (USP). Next, create your own marketing plan. Lastly, explore various small business ideas. These should get you going and you can simply update your marketing plan as you learn the loops of your industry.
Hire A Business Coach Today!
This simple 7-step guide to starting a business covers all the important bases of a startup business. However, if you still find it overwhelming, then you may want to work with a professional business coach. Your business coach will help brainstorm ideas and guide you in executing your plans without micromanaging you. Not only will you be able to learn how to run a small business confidently but you will also develop stronger leadership skills.
Interested to hear about what I offer? Book your complimentary No COST strategy session with me today!