How to Start a Business?
When you want to start your business. At first, you have really knowledgeable and passionate about something, and you have to select the marketplace. Wherever your interests lie, there's almost certainly a way to turn it into a business.
This expedition isn't an easy one, Starting a business requires a lot of time, effort and hard work, and many would-be entrepreneurs end up failing. But if your company survives, the rewards are well worth the obstacles you'll face on the road to success.
There's a lot to consider and plan before you start on, and it's important to prepare yourself for free enterprise. If you think you're ready to start your first business, here's a step-by-step overview of what you need to do to make it happen.
- Improve your idea
- Make a business plan
- Assess your finances
- Find your legal business structure
- Register with the government and IRS
- Purchase an insurance policy
- Build your team
- Select your vendors
- Brand yourself and advertise
- Grow your business
Improve your idea
If you are thinking to start a business, you have already an idea of what you want to sell, or at least the market you want to enter. Do a fast look for existing companies in your selected industry. Learn what current brand leaders are doing, and figure out how you can do it better. If you think your business can deliver something other companies don't or deliver the same thing, but faster and cheaper. You have got a concrete idea and are ready to create a business plan.
Another option is to open a permission of an established company. The concept, brand following and business model are already in place; all you require is a good location and the means to fund your business.
Make a business plan
Now that you have to make a business plan in place, you have to to ask yourself a few important questions. What is the idea of your business? Who are you selling to? What are your end goals? How will you finance your startup costs? These questions can be answered in a well-written business plan.
A lot of mistakes are made by new businesses rushing into things without pondering these aspects of the business. You need to find your target customer base. Who is going to buy your product or service? If you can't find evidence that there’s a demand for your idea, then what would be the point?
Conducting thorough market research on your field and demographics of potential consumers is an important part of crafting a business plan. This involves conducting surveys, holding focus groups and researching SEO and public data. A guide to conducting market research can be found on our site businesshubgroup.com
A business plan helps you figure out where your company is going, how it will overcome any potential difficulties and what you need to sustain it. A full guide to writing your plan can be found here, and when you're ready to put pen to paper, these free templates can help.
Assess your finances
Starting any business has a price, so you need to determine how you are going to cover those costs. Do you have the means to fund your startup, or will you need to make use of money? If you are planning to leave your present job to focus on your business, do you have some money put away to support yourself until you start making a profit? Find out how much you are going to need.
Experts generally agree that startup businesses often fail because they run out of money too fast before turning a profit. It's never a bad idea to overestimate the amount of startup capital you need, as it can be a while before the business begins to bring in sustainable revenue.
If you need financial assistance, a commercial loan through a bank is a good starting point, although these are often difficult to secure. If you are unable to take out a bank loan, you can apply for a small business loan through the Small Business Administration (SBA) or an alternative lender.
Startups requiring a lot more funding up front may want to consider an investor. Investors usually provide several million dollars or more to a fledgling company, with the expectation that the backers will have a hands-on role in running your business. Alternatively, you could launch an equity crowd funding campaign to raise smaller amounts of money from multiple backers.
You can learn more about each of these capital sources and more in our guide to startup finance options.
Find out your legal business structure
Before you can register your company, you need to decide what kind of entity it is. Your business structure legally affects everything from how you file your taxes to your personal liability if something goes wrong.
If you own the business entirely by yourself and plan to be responsible for all debts and obligations, you can register for a sole proprietorship. Be warned that this route can directly affect your personal credit. Alternatively, a partnership, as its name implies, means that two or more people are held personally liable as business owners. You don't have to go it alone if you can find a business partner with complementary skills to your own.
If you want to separate your personal liability from your company's liability, you may want to consider forming one of several types of corporations. This makes a business a separate entity apart from its owners, and therefore, corporations can own property, assume liability, pay taxes, enter into contracts, sue and be sued like any other individual. One of the most common structures for small businesses, however, is the limited liability corporation (LLC). This hybrid structure has the legal protections of a corporation while allowing for the tax benefits of a partnership.
Ultimately, it is up to you to determine which type of entity is best for your current needs and future business goals. More details about the different business structures can be found here.
Register with the government and IndianRevenue Service (IRS)
To become an officially recognized business entity, you must register with the government. Corporations will need an "articles of incorporation" document, which includes your business name, business purpose, corporate structure, stock details and other information about your company. Otherwise, you will just need to register your business name, which can be your legal name, a fictitious "Doing Business As" name (if you are the sole proprietor), or the name you've come up with for your company. You may also want to take steps to trademark your business name for extra legal protection.
After you register your business, you may need to get an employer identification number (EIN) from the Indian Revenue Service (IRS). While this is not required for sole proprietorships with no employees, you may want to apply for one anyway to keep your personal and business taxes separate, or simply to save yourself the trouble later on if you decide to hire someone else. The IRS has provided a checklist to determine whether you will require an EIN to run your business. If you do need an EIN, you can register online for free.
You also will need to file certain forms to fulfill your federal and state income tax obligations. The forms you need are determined by your business structure. A complete list of the forms each type of entity will need can be found on the Business Hub Group. You can also find state-specific tax obligations there. Some businesses may also require federal or state licenses and permits to operate.
Purchase an insurance policy
When you start business, you might to purchase the right insurance for your business is an important step that should happen before you officially launch. Dealing with such incidents as property damage, theft or even a customer lawsuit can be costly, and you need to be sure that you're properly protected.
If your business will have employees, you will at minimum, need to hire staff' compensation and unemployment insurance. You may also need other types of coverage depending on your location and industry, but most small businesses are advised to purchase general liability (GL) insurance, or a business owner's policy. GL covers property damage, bodily injury and personal injury to yourself or a third party.
If your business provides a service, you may also want to consider professional liability insurance. It covers you if you do something wrong or neglect to do something you should have done while operating your business. Learn more about the types of insurance policies your business might need here.
Build your team
Unless you're planning to be your only employee, you're going to need to hire a great team to get your company off the ground. “MediaMath” CEO and founder who is Joe Zawadzki, said entrepreneurs need to give the "people" element of their businesses the same attention they give their products.
"Your product is built by people," Zawadski said. "Identifying your founding team, understanding what gaps exist, and determine how and when you will deal with them should be top priority. Figuring out how the team will work together is equally important. Defining roles and responsibility, division of labor, how to give feedback, or how to work together when not everyone is in the same room will save you a lot of headaches down the line."
Visit Business Hub Group News Daily article for tips on building a great startup team.
Select your vendors
Running a business can be overwhelming, and you're probably not going to be able to do it all on your own. That's where third-party vendors come in. Companies in every industry from HR to business phone systems exist to partner with you and help you run your business better.
When you are searching for B2B partners, you will have to select very carefully. These companies will have access to very important and potentially sensitive business data, so it's critical to find someone you can trust. In our guide to choosing business partners, our expert sources recommended asking potential vendors about their experience in your industry, their track record with existing clients, and what kind of growth they've helped other clients achieve.
Business Hub Group offers reviews of the best vendors across a wide range of B2B product and service categories. Visit our Find a Solution section to our recommendations.
Brand yourself and advertise
You start to sell your product or service, you need to make your brand and get a following of people ready to jump when you open your literal or figurative doors for business.
Create a logo that can help people easily identify your brand, and be consistent in using it across all of your platforms, including your all-important company website. Use social media to spread the word about your new business, perhaps as a promotional tool to offer coupons and discounts to followers once you launch. Be sure to also keep these digital assets up to date with relevant, interesting content about your business and industry.
Make a business plan that goes beyond your launch is essential to building a clientele by continually getting the word out about your business. This process, especially in the beginning, is just as important as providing a quality product or service.
For more information on creating an effective marketing plan for your business, visit business hub group to find guide here.
Grow your business
Your launch and first sales are only the beginning of your task as an entrepreneur. In order to make a profit and stay afloat, you always need to be growing your business. It's going to take time and effort, but you'll get out of your business what you put into it.
Collaborating with more established brands in your industry is a great way to achieve growth. Reach out to other companies or even influential bloggers and ask for some promotion in exchange for a free product sample or service. Partner with a charity organization and volunteer some of your time or products to get your name out there. In this article, Business News Daily offers some suggestions for rapid growth.