Coming up with an idea for a small business shouldn’t be hard, given the number of resources that you have today.
However, there are many things that go into making a business work. And not all entrepreneurs, especially the rookies, would know all of them.
Putting a business together, even a small one, is hard work. But it isn’t complicated as long as you can come up with a robust plan and stick to it.
That said, if you already have a name for your business, here’s what you can do next.
1. Choose the Structure of your Business
Most small businesses start as a partnership, an LLC, or a corporation. There are many factors that come into play when you decide on a structure for your business.
A few such things could be the name of your business, the liabilities and tax filings.
But for starters, you could choose a structure that you think works well, and then refine it as your business evolves or as the change in times or circumstances demands.
If you are not sure about what structure your business should follow, then it’s best that you consult an attorney or CPA so that you don’t end up making the wrong choices.
2. Get your Business Registered
You should be careful when choosing a name for your business, as it has a prominent role to play in almost all the aspects of your business. So, when choosing a name, make sure that you think about the implications it will have on different aspects of your business.
One of the most crucial things to consider when choosing a business name is whether it has already been taken or trademarked. The last thing you want is a copyright violation. So, only after making sure that the name you choose is legit, and is available, should you get your business registered.
3. Get all the Licenses and Permits
It is essential that you complete all the paperwork for getting the licenses and permits for running your business. You can get the permits and licenses from the Government.
These days, the process is mostly online, where you may have to visit a specific website.
4. Assess your Financial Needs
When you start a business, you must also think about how you are going to cover the different operational and other costs. So, you must assess your funds to know if you need a business loan.
If you feel you don’t have enough to set-up or run a business, you can always take out a business loan. There are many ways to do this, including through banks and other non-banking financial companies. But you must first analyse your financial stance before you can even think about how to set up or run the business.
To do this, you need to do two things:
- Assess the profitability of your business
Assess how much revenue your business can generate in a year. Also, consider your expenses that keep the business afloat.
- Analyse the price of the products and services that you offer
Besides assessing the revenue and expenses, you must also analyse the cost of the products or services that you offer. You can check with your competitors to find out how they are pricing their products and services.
You could then take cues from them and develop a pricing strategy that works best for you.
5. Chalk out a Business Plan
There are many things you should consider when making a business plan, including finances, profits and revenues, and the structure of your business and how it will impact your organisation in the coming days.
Your business plan must include:
a. The purpose of your business
b. Your goals.
c. Your customers
d. The operational costs
Before you chalk out your business plan, you must conduct a thorough research on the markets. You could also consider having an exit strategy so that you can have a smooth closure.
- Market Research
When you do market research, also consider the target demographics. To whom are you selling your products or services? Doing market research may involve surveying different people, holding group meetings with them, and even taking cues from SEO, public data, and other such information.
Once you have gathered all the information, you must analyse it using various analysis techniques so that you can be clearer with your opportunities and limitations.
- Exit Strategy
As mentioned earlier, you could also consider an exit strategy for your business so that you can have a smoother closure.
So, a business plan will help you figure out the direction in which your organisation is going to head and enable you to steer it in that direction, or change it if required.
6. Set your Business Up
After you have chosen the location or the city or state in which you want to set up your business, consider buying an office space. But before you do that, also think about whether you want to run the business remotely or if you want to run it out of office space. Many small businesses today also operate from remote locations.
However, if you want to run it out of an office space, also keep in mind you may need to rent or lease out that office space. You could also consider buying the office space.
7. Make your Team
So, now that you are done setting your business up, it’s time to hire people who are going to be working along with you. To do this, you must consider the positions you are going to be filling and the responsibilities and functions of those positions. Instead of directly hiring people, you can also outsource the work to contract employees. In that case, you may need to have an independent contractor agreement in place.
If you are thinking of taking up sole responsibility for the operations of your business, then too, you must consider having a small team that can help you out with the daily activities. The team could comprise a mentor or business coach or even your family.
Whatever the case, you need people for your business to operate smoothly. So, make sure that you consider recruiting potential candidates for your organisation.
8. Promote your Business
So, now that you have got your business operational, it’s time to get the word out. And once you let people know about your business, you are likely going to get investors and clients. Note that the growth of your business also depends on your investors and clients.
The more investors and clients that you acquire, the more your business grows. It would also be wise to come up with a marketing plan. For this, you could look at different marketing ideas that will help promote your business effectively.
If starting a business is on your mind, you can follow these eight tips to get an impressive start, provided you already have a name for it. Also, explore different niches in which you can start a business. You should explore those niches which are best suited for you, and that are profitable.
Promote your business in such a way that your marketing efforts pay-off. For this, you can take the help of your in-house marketing team, or you could even outsource your promotional efforts to contract employees or organisations.
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