Basic Steps to Start-up A New Business

Basic Steps to Start-up A New Business

A lot of people think that starting a business is difficult and that it requires large amount of capital. A lot of would-be-entrepreneurs get stuck early in the process because they think that only a certain type of person has that quality and what it takes to become a successful business owner. The reality is, that most of the people have what it takes: a good idea, the right amount of capital and the creativity.

But what most of the people lack, is patience, determination and the ability to plan. A business owner can easily become overwhelmed in the early stages of starting a business and the key to it is that the business owner is required to have working plan and he must stick to it. Thus a business owner must use something simple which guide him.

Bellow are the key steps to follow to start a new business:

1. Take time to brainstorm

An idea is always great, but a business owner is required to give it legs. But The first essential step which every business owner must follow is that he must research his potential market. His job as a new entrepreneur and a future business owner is to think about every aspect of his business. Come up with answers to every question which either a stranger or a potential investor might ask the business owner. For example try to find answer these questions:

Who is the target market for the product?

What could go wrong and how will the business owner solve it?

Are there additional products or services that the business owner could tie into his main offering?

What are the main things which a business owner wants his customers to know about him?

By preparing answers to these questions ahead of time, the business owner would become a more confident and a trustworthy business owner when it comes to trying to attract the attention of the right stakeholders.

2. The business owner must create a business plan

After the business owner has taken the time to answer the questions about his business or the product idea, he must use them to put together a concrete business plan.

The main parts of a business plan include the executive summary, a company description (as to what makes the company unique), a market analysis (the competition and the target demographics), the company's structure, a description of the service or the product line, the marketing and the sales strategy, its financial projections -- plus any other additional useful information.

3. The business owner is required to surf for the start-up funds that are required
A business owner can't start a business without capital. He is required to determine what he has, what he will need and how he will fund the business. If he plans to seek investors to fund or finance it, he is required to start writing a business plan. he must Research the costs that are associated with his business. He must Know how much money he will need and decide where it could come from.

4. Cconsult or Hire a good business attorney

The businessman is not necessarily required to have need an attorney on a retainer. An attorney can advise the businessman about things such as drafting of contracts, reviewing business owner's lease and determining the right business structure. However, the best way to find a good attorney is either by referral or through networking.

5. The business owner is then required to hire a good accountant

An accountant will work in conjunction with the attorney and they will play an instrumental role in determining the best form of ownership. The accountant can also help the owner to establish bookkeeping and other record keeping procedures which the business owner is required to keep on track for years.

6. Decide on a Suitable business structure

The business owner has a lot of choices which include sole proprietorship, partnership, Private Limited Company or Limited Liability Partnership. The Personal liabilities, taxes, paperwork and regulations vary greatly among the different legal business structures. The business owner's attorney and accountant help to play a key role in assisting him in this important decision.

7. Decide on a business name

It seems obvious and simple, but the name is how the business will be known to the world. The right name says a lot about the business. The business owner must make a list of all the potential names and he must then narrow the list down to the one that best describes the company in a few words, while being catchy, easy to remember, easy to pronounce and easy to spell. The business owner must also consider how it would translate to a web domain name.

8. Get all necessary permits and licenses

Along with a business license, the business owner is also required to get additional licenses depending on the type of business and local laws. Many professionals, such as contractors and real estate agents, are required to licensed in the states in which they work. Additionally, he may need licenses to manufacture and/or sell specific products such as liquor, firearms or even lottery tickets and these licenses might be Import Export Code, Fssai License and so on. The business owner must thus Research all the licenses that are applicable in his state. It's also extremely important to know the zoning laws before the business owner opens a business.

Whether the business is a day or a year old, the business owner or a would be business owner must continuously set goals in order to move his business forward. He must Examine the competition, employees, investors and peers which helps him decide what new goals are needed to be set and what needs to happen in order to be successful.