Are you looking to start a small business but don’t know how? My goal is to help make the process easier for anyone who is needing to get started.
Starting your own small business can be a great opportunity. It also comes with plenty of questions and insecurities about whether you have the skills, knowledge, or even the capital to get started.
Starting a small business is hard, but when you don’t know where to start it can be even harder. Your small business ideas may have some merit, and may even see some success, but it can be pretty difficult to get off the ground, up and running, and see any profit.
Starting a small business is one thing; running one is an entirely new experience. Before you begin your journey to become an entrepreneur, you should do some research into what it takes to run a small business and even more importantly – how to start one of your own, if indeed that’s still what you want to achieve.
However, there is one way that I found out that might be very useful if you want to get more customers as soon as possible.
Don’t worry. I’m here to help you learn how to start your own small business in just 9 simple steps.
1. Choose Your Business Idea
To start a small business you will need to choose your startup idea. Selecting which business idea to start can be a challenge when starting a new business. It requires a lot of thought and research into what your market needs, how much your startup costs, and if you are passionate about what you would like to do for a living.
Choosing the right business idea is one of the most important things you can do as a would-be entrepreneur. Different businesses have different risks and rewards, making some much easier and safer to start than others.
You’ll need to do your homework to find a great market opportunity for your business idea. As you do your research, it’s important to ask the right questions and follow the right steps so that you’re not wasting your time or money.
See also: 500+ Great Business Ideas You Can Start Today
2. Develop A Plan For Your Small Business
An effective business plan outlines the path your business will take from startup to establishment and growth – it is essential for every new business.
Planning is the secret to a successful small business and more than a blueprint to success. Planning and organizing ahead of time lead to managing your time wisely and getting more done.
Before you spend money and time on building your business, think about what you want from this venture. Look at its potential profitability and the amount of work it will take.
Your plan doesn’t have to be complex, but if you don’t consider all the points, you could waste time or money with an idea that isn’t as good as it seems.
Include the following in your business plan:
- Title page
- Executive summary
- Business description
- Business tools
- Market strategies
- Competitive analysis
- Design and development plan
- Business operations and management plan
- Finance factors
3. Sort Your Finances
Do not start a business without getting your finances in order. Many people dream of having their own business, but most put it on hold because they don’t know where to begin. Even more, don’t know how to manage their personal finances once they open that small business.
If you are just about to start a business or are in the very early stages of creating one, my advice is to get your finances sorted out first.
It is more worrying when you are about starting a business and you have money troubles. Plan early for things like your taxation, accommodation, and insurance.
Cash flow for your business can be difficult to manage if initially, you have not taken the time to sort out the finances of your household or yourself. It is important to take some time and get this area sorted out before considering starting your own business.
It is also a good idea to get help with this when possible, as sorting out finances is never easy and likely you will have many questions along the way.
Once you are stable with your finances, you can then start to think about how you plan to run your business and where it will take you in the future.
4. Identify Your Ideal Business Structure
Business owners often ask the question: how do I start a small business? More than just receiving a license and storefront, you need to decide what type of business structure will work best for you. The most common types of business structures are sole proprietorship, partnership, corporation, and S-corporation.
The right choice matters since it impacts your tax obligations and how much financing you’ll need. Each of these business types has its own advantages and disadvantages. As you can imagine, while each type of business structure is different in its own way, they’re also similar in many aspects.
5. Choose and Register Your Business Name
Choosing a name for your new business and registering that name is one of the most important steps to starting your business. Please choose carefully. The future success of your business hinges on it. You should avoid making a mistake when picking a business name.
The name should be easy to remember and reflect your brand. A great business name can help your small or large business to attract more customers to your products and services.
Check if a business name is trademarked or in use once you choose it. It’s then time to register if everything is all right. As a sole proprietor, the state or county clerk must register the business name.
In general, corporations, limited liability companies, or limited partnerships register the business name when they file their formation paperwork.
Choose a business name and register your domain name as soon as possible.
6. Get All the Licenses and Permits Required For Your Small Business
Having a small business means that you need to have valid licenses and permits. With the internet, starting your own business is much easier than before. However, there are many laws that you will have to follow if you want to continue running your small business.
To start a small business, you have to get all the licenses and permits required for your type of business. To run a small business, you have to register your business name, tax id number and check for any laws and regulations required.
You can first check with your state’s small business administration group to confirm whether all licenses are really necessary for your type of small business.
7. Pick An Accounting System For Your Small Business
If you’re starting as a very small business owner, you will have to pick an accounting system for yourself. And this is not an easy task for many new business owners because there are so many options that can be downright overwhelming.
Checking out all the available options and the required features to your business can take you days – maybe even weeks.
A good accounting system is essential to setting rates, setting prices, conducting business, and filing taxes. An accountant can be hired or you can set up your own accounting system.
See also: Best Accounting Software for Small Businesses
8. Get Your Business Location Ready
If you are taking the first step to create your own business, it’s time to plan the logistics. Choosing a location for your business is one of the most important decisions you will make. It is where your business will start and where it will end. Your location can be an asset or liability.
You have to consider the factors of your location in terms of getting the ideal shoppers, suppliers, and infrastructure for customers’ satisfaction. It’s a strategic way to establish your business that can help it stand out from your competitors.
9. Spread the Word About Your Small Business
Once you’ve decided to start a small business, the next step is getting the word out. There is nothing worse than spending thousands of dollars on a business that never materializes because nobody knows it exists. You have to spread your message if you want customers.
If you really want your small business to thrive, you need to constantly find ways to spread the word about it. This is easier said than done; it requires you to do a lot of research initially and on an ongoing basis.
There are different ways you can let people know what you are doing. You can do it via social media platforms like Facebook, Twitter, Instagram, etc. You can also use the traditional method of marketing to spread the word out.
See also: Introduction to Social Media Marketing
FAQs
What are the 9 things you must do before starting a business?
- Choose your business idea
- Develop a plan
- Sort your finances
- Identify your ideal business structure
- Choose and register your business name
- Get all the licenses and permits required
- Pick an accounting system
- Get your business location ready
- Spread the word about your small business
Is starting a business the only way to get rich?
A majority of wealthy individuals are entrepreneurs. There aren’t many jobs that can make you rich, but you can start a business if you’re motivated enough.
Can you start a business with $1000?
With $1,000, you can begin almost any business, but without some basis on which to build, you are unlikely to be able to sustain it or even generate some cash flow.
Which business is good for housewives?
Housewives consider freelancing to be the most suitable home-based business idea since it allows for earning extra income from sitting at home.
What business can you start with $100?
Businesses that require less capital like sales or service businesses are the best to start with $100 or less. Your only requirement is a smartphone and internet access.
Final Thoughts
Starting a small business is exciting, but also very daunting. The education and experience needed for success can be difficult to attain for many people, which is why many people give up their dreams of entrepreneurship to go back to the corporate world.
But that’s a shame because starting a small business is something every entrepreneur should consider at some point in their lives.
Tosinajy educates you on how to make money online, the tools you need, and solutions to common issues you may encounter. Thanks for reading.
