Are you about to begin your first business! Congratulations are in order! Coming up with the idea and ironing out the details is the start of your entrepreneurial journey.
However, creating a business is more than just coming up with a business name and creating your own logo. There is so much more to starting a business, and the steps may be daunting to those new to the industry. Not to worry, as this is a short guide on how you can put up your first business smoothly.
- Refine the idea
As mentioned, you most likely have an idea of what to do for your business or at least the market you’ll enter. Further refine that idea with thorough research.
Who are the existing companies in the industry? What are the brand leaders doing and what can you do to make it even better? Think of what your business can provide that others can’t, then that is when you can create your business plan.
- Write your business plan
When you have a refined idea, the next step is to create your business plan. Answer the following questions:
- What is my business’ purpose?
- Who is my target audience?
- What are the end goals?
- How will the business’ startup costs be financed?
Make sure that you include this into your business plan as well:
- Detailed market research about your target customers
- An exit strategy in case of financial constraints or poor economy
- How much is needed to run the business and where to allocate the funds
- What’s your financial situation?
There will be a price when starting any kind of business, so you’ll need to know how those costs will be covered. Can you start with your capital, will you need to borrow money, or do you want to pitch your plan to companies like Clean Venture Fund in exchange for shares?
As you determine your start-up costs, perform a break-even analysis to see if your company and offerings are profitable in the long run. Furthermore, as you list down your expenses, monitor them and see what you can do to save on certain areas to prevent overspending.
Once you have the breakdown of how much you need, consider your financing options, which can be through the form of business loans or grants, investors, or even crowdfunding, if you don’t have the capital yet.
- Register your business
Once you have ironed out all the details and determined your legal business structure, now is the time to register your business with the government and IRS. You will have to acquire business licenses before legally operating it, registering your business with the federal, state, and local governments.
Make sure you prepare all the requirements beforehand and submit all details for a smooth transaction.
- Build your team and vendors
Now that you are allowed to operate the business, next up is to build an efficient team and select your vendors wisely! Make sure you select passionate and hardworking team members with experience in the industry.
Wrapping It Up
If you’ve got the idea for a fruitful business, this is your time to begin putting that idea to life NOW!