Start Up Business
How to Start a New Business in 10 Steps
Starting your own business can be one of the most rewarding things you ever do, but it’s also one of the most daunting. Entrepreneurs from all over the world have made their dreams come true by following their passion, and they want to help you follow yours by giving you their best advice on how to start a new business. This article provides 10 steps that will guide you through getting started and seeing your vision through to the end.
10 STEPS
Step 1: Research your industry
For any business idea, we strongly recommend that you do some research before you proceed. First, determine whether your idea will be unique and offer something new for your customers; chances are that someone else has already thought of your exact business plan. The more it appears you’re just running with an established model, rather than pioneering new territory, then your industry is saturated. It’s better to find a different niche.
Step 2: Brainstorm business ideas
Once you have your business ideas, you need to find something that's viable for today's market. To help narrow down your options, answer these questions: What needs does my business fill? Does my business idea solve a problem or address an opportunity? What’s distinctive about my business idea? How is it different from similar businesses? Will people pay for what I offer? Can I scale my venture up as needed if and when more customers come on board?
Step 3: Check viability of ideas
In its simplest form, viability is just asking if your customers want or need what you’re offering. If they don’t, you have an idea that will never become a business. At first glance, it might seem like there are many moving parts involved with checking viability—but I promise it's not as complicated as it seems. In fact, feasibility research is one of those areas where you can get by with very little formal preparation. First of all, remember that nothing is set in stone at first. You’re simply trying to figure out if something could work or not—and if your idea for entering an industry has any potential issues that might cause problems later on down the road. Here are some simple ways to test viability
Step 4: Pick your idea and start building
So you’ve got your idea and have started doing research. Now what? The fourth step is all about implementing. If your idea will require investing capital, or you need partners or employees, wait until you’re sure before taking action. Otherwise, there’s no reason to wait—get started now!
Step 5: Gather feedback and refine your idea
At every step along your journey, you should be testing and refining your idea. It's important that you talk to real people who have no connection to your business — including friends and family. People will tell you what they think you want to hear if they don't want you to quit, but these sorts of people can be among your worst sources of feedback since they're often too excited about an idea or product. Seek out people who are less invested and genuinely interested in helping shape your business because their objective perspective is often key for figuring out what's working and what isn't. You also need solid feedback from industry experts as well, even if that means paying for it.
Step 6. Get funding, if needed
It’s very important that you have some cash on hand for launching your business. But if you don’t, there are other ways to make it happen. Bootstrapping is often thought of as an option for new businesses, but it’s not just for small startups with micro-budgets. Some startups rely solely on bootstrapping, and later use outside funding when they’re ready.
Step 7. Make sure you're ready
Before you start your business, make sure you're ready! There are only so many hours in a day and no one wants to spend that precious time on something that isn't going anywhere. You want to dedicate yourself fully to your idea, but it's hard when you're not making any money. Save some money (don't forget about taxes!) before you dive into business full-time and make sure you have enough support from friends and family. Having them on board will give you more drive and motivation as well.
Step 8. Register your legal entity
Registering your legal entity (i.e., a limited liability company or an LLC) is a crucial step on your path to becoming an entrepreneur. Here’s why: Your business entity will shield you from personal liability for business debts and lawsuits, so it’s important to choose one that’s right for you and protect it legally. Don’t worry, we’ll walk you through how to register your entity with both federal and state governments.
Step 9. Choose an appropriate location
Choosing an appropriate location for your business is an important step. The type of business you are operating will determine what type of space you need: for example, if your store sells items that can be bought online, you won’t need a storefront at all—so consider renting office space instead. Other types of businesses might require on-site storage or live music.
While your online presence is an important part of attracting customers, there’s nothing like word-of-mouth advertising. While you should have business cards available and make yourself available for questions via email or the phone, it can also be helpful to attend local networking events where you can reach out directly to individuals who might become customers. Create a good first impression, and they just might spread the word about your services.
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