How To Start A Business: A Step by Step Guide
- Jan. 16, 2022
- SME Businesses
Honestly speaking starting a business is not that easy. The documentation, legal requirements, financing and strategic development can be quite overwhelming. But the good news is, it is very possible start your own business. It just takes patience, effort and a few setbacks but you can definitely do it. I mean, we’ve all heard of spectacular success stories of early-stage startups growing to be multi-billion-dollar companies, such as Uber, Facebook, WhatsApp, Airbnb and many others.
The thought of starting a business usually comes with some confusion and questions such as, what should you name your business? What about the logo? Should you start to apply for a loan? All these are the right things to consider. It just requires some order so that everything falls into place and you're not left to guess where to start. That is why we have listed below a few steps to help you kickstart this process. Let's get started.
Start with a viable business idea
All successful businesses start with an idea so the first thing to do is to think about what type business you want to start. Be familiar with the market that you’re interested in and also that you’re absolutely clear about what you can add and how you can serve customers differently. Afterwards you can build a product or service that solves a need for consumers. It has been estimated that about 79.4% of companies survive in their first year of operation so be sure to do your research before anything.
Research on your business idea
Once you've figured out your business idea, the next step is to conduct market research so you can confirm whether it's worth pursuing and also analyze your competition. For you to successfully conduct research you’ll need to identify your target customers, engage with your audience and also look at competitors. Thorough market research will also help give new businesses like yours the ability to make informed decisions about the way you position your products and services.
Develop a business plan
A business plan will help you outline your current and future goals. It is very essential for businesses aiming for long-term success and growth. It helps you make more efficient and strategic decisions as well as helping you focus on your goals and strategies. Having a plan will help you keep on track and is essential when you approach potential partners and investors as this will give them confidence to invest in you. It needs to include a title page and contents, statement of purpose, product descriptions, market analysis and competitor analysis.
Make your business legal
You will need to acquire a variety of business licenses before you can legally operate your business. You will need to register your business with your state, pick up the right licenses and permits then get a tax ID number. After following these steps, you will finally create a brand name that no other company or business has. Then you can set up an office and introduce yourself in the market.
Assess your finances
The next step is for you to determine what your startup costs will be. Every business has a starting price so you need to determine how you're going to cover these costs. You need to determine whether you have the finances or if you'll need to borrow money. The main reason most businesses fall at an early is stage is because they do not have enough money to keep them running before they start to receive profits. To avoid this, you can over-estimate your startup cost since most businesses take some time before they start to receive sustainable revenue. You can also avoid overspending by monitoring your expenses to ensure you're staying on track. Don't be too quick to get unnecessary fancy items.
Launch your business
We're now onto the last step and at this point you already know everything regarding how to run a successful business. This is the most exciting part and one that every new business owner waits for. The launch should focus on marketing activities to help you make your first sale. There are also a few things that could help make the launch even more successful and these include; using your network to promote your business, offering discounts by rewarding early customers so as to gain traction early and also trying to test paid ads which will help advertise your business tons larger number of people and customers interested in what you offer.