Your Step-By-Step Guide to Starting a Successful New Business Venture
If you talked to some of the world’s most successful entrepreneurs and small business owners, any of them would tell you that the journey to starting a business is no easy walk in the park… in fact, it might be one of the hardest things you may ever do in your professional career; the main thing is to get started somewhere.
If you’re like most people, you’re thinking that coming up with a business idea is a good place to start. Well, a business idea is definitely a great place to start but your idea is just an idea if you don’t put forth any type of effort behind it. There are so many fresh-minded and determined entrepreneurs out there… they have the drive to create a successful business but don’t fully understand the effort that’s needed, and ultimately required, to launch a new business venture… and a successful one at that!
You’re obviously going to need to create a business name and logo to help establish your brand… that’s the fun stuff, but what about those other aspects that aren’t as fun and glamorous but equally important? From determining your legal business structure to getting registered with the IRS and government, these equally important tasks can certainly pile up on you pretty quickly if you don’t stay on top of things.
The great news is that you don’t have to worry about that happening to you. If you can stay focused on the prize and get rid of self-doubt, your business will grow for many years to come. Outlined below is your step-by-step guide to starting your new business venture. This will take all the headache out of trying to figure out where to start and making sure you don’t forget anything. Take a look at how to turn your idea into reality.
Hone in On Your Idea and Enhance It
The fact that you’re even thinking of starting a business means that you have an idea that you fully believe in. With the confidence you have in your business, that also means that you have a pretty good idea of the type of product you want to sell and who you want to sell to. During this first stage, this is when you want to do all the research you can. Look at other companies in your business’ industry; try to find out exactly what they’re doing and then do it ten times better for your company.
The whole point or goal of this sector is to either deliver a product or service that’s unlike any other in your industry or to at least deliver the same product or service but in a much faster and cost-effective way than your competition.
Draw Up Your Business Plan
Now that you have enhanced and refined your business idea, it’s now time to get everything put in writing to solidify it. The point of your business plan is to put every aspect of your business in plain view… essentially it’s the blueprint to your business. You might be wondering why you can’t just start your business off of your refined idea and why does it need to be put in writing? Well, to simply put it… putting your business plan in writing is what’s going to help you not miss anything.
There are so many things to take into consideration when starting a new business venture, some of the easiest and most avoidable mistakes happen because they didn’t put it in their business plan and just operated based off of their memory. Your business plan is going to lay out where your business is going, who your target audience is, how your business will get funding, and how to overcome business obstacles (because you will endure them).
Take a Look at Your Finances
They say it takes money to make money and in the world of entrepreneurship, you can’t start a business without it. If you’re one of the lucky ones, you have your own money to fund your business but if you’re like most people you have to borrow money. In fact, one of the biggest reasons why businesses fail is due to running out of money too soon. According to the Small Business Administration (SBA), the survival rate for your business improves as your business ages. So what does that mean? That means that the longer your business stays in business, the higher the chance that it won’t go out of business.
One commonality among small business failure is that they spend too much money on things that are important to the business but not important enough for the amount of money they’re spending. If you indeed need financial backing for your startup, one of the best routes to take would be to secure a commercial loan. Now, these loans aren’t easy to get so if you are having a hard time getting one, the next best thing would be to take out a small business loan through the SBA.
Figure Out the Type of Business Structure You Want
This is probably the aspect of your business that makes your idea real. In order for your business to be an actual business, you have to determine what type of entity it will be. Forming your business structure is a very important part of your business. The most common business structure is an LLC. If you choose to start an LLC, you’ll be legally protected within the confines of a corporation and still be able to have the tax benefits that come with a partnership.
Get Your Business Registered and Insured
Getting an LLC is what made your idea a reality… well, getting your business registered with the IRS and government is what makes your business legally official in the eyes of the public. As a corporation, your business will need an articles of incorporation document. This is a document that has all the details about your business. It’s also a good idea to get your business name trademarked… just as an added form of legal protection.
Just like everything else, you also have to get your business insured and you need to make sure you get the right kind of insurance as well. Getting your business insured is also something that must happen before your business can even launch. Whether it’s property damage, getting sued, or theft, you need to make sure your business is covered for such incidents.
The Fun Stuff
Now that you have all the legalities out of the way, you now are at a point where you can start building your team, choosing vendors, and putting your brand out there! This aspect might be one of the more fun aspects but it’s still a very serious and important part of your business.
So as you go through your journey to entrepreneurship, just stay persistent and remember that the road may come with bumps along the way but you just have to keep on going to see where the journey takes you.