Whereas most people have come up with a business idea, only a select few of us execute them. The reason we do not put our ideas into action can be plentiful. One of those reasons is a lack of knowledge of how to start business.
This guide has been put together to help people who want to know how to start business – and overcome the many hurdles. Read on to learn about six important tasks on any new business owner’s to-do list and the answers to other common questions.
Most people have had a business idea before. Some are taken to the grave and others are Uber, Google, YouTube, Amazon, Bitcoin and more. There is no exact blueprint to what makes the best business idea.
Some business ideas are innovative while others follow suit and replicate what has gone before. The only thing certain is that a workable business idea is needed before thinking about how to start business.
It is often argued that successful business ideas do not have to be creative and innovative. By all means, a new business idea that solves a problem in a unique way is often successful. However, the best business ideas arise from necessity.
What this means is that business ideas should be an answer to a question. They may be an answer to a question that has never been answered before. This is usually a job for entrepreneurs.
They can also be an answer to a demand for an age-old service or product in a certain area.
These business ideas may be as simple as opening a bakery in a town without a bakery. Either way, the best business ideas develop over time as a response to events and occurrences.
Some people sit down and come up with a business idea, but this is not how business ideas are born for most business owners. Business ideas often come to fruition after encountering a problem.
Many business owners will work on an idea after personally coming into contact with one of these problems and the solution was not available to them. They then have a business idea which serves a purpose. Again, the problem may be something that has never been solved or could just be a problem in that location at that time.
Therefore, you could start brainstorming, but a more organic way of finding business ideas are from looking at the world around you. From this, you could do market research to confirm your idea as well received by others.
Starting your own business can be extremely daunting. Even more so if you are handing in your notice to do it. Giving up the stability of a weekly paycheck to start on an uncertain venture can be scary. Yet, it may be the most rewarding decision you make.
You may become financially better off and have a lot more job satisfaction. In fact, people who build their own business are known to have a happier working life.
The initial steps of starting a business can be confusing. Once you have a business idea, here are some of the key steps and how to navigate them.
Make a business plan
Once a business plan has been conceived, the nest move is to make a business plan. These plans are used to outline every aspect of your business.
A business plan may be needed to secure capital. Alternatively, it could just be needed to map out, as the name suggests, your plan of action. For those writing a business plan to secure finances, they may wish to get the help of experts who write business plans for a living.
Nevertheless, all businesses should have one. The most effective and meticulous plans will include:
- An overview of the business
- Information regarding products and services
- Milestones for the business (within the plan’s time frame)
- The business’s hierarchy
- Financial plans
These are the things that are most often included inside a business plan. Yet, this does not mean that other details can be included. The exact contents of a business plan will be determined by the business itself.
Your bureaucracy obligations
One of the pressing matters to deal with when forming a business is to make the relevant authorities aware. Registering your business is a priority. Businesses can be registered in one of three ways:
- Sole trader: sole traders run a business in a self-employed or individual capacity. These people are responsible for the finances of their business and have accounting responsibilities.
- Limited companies: companies can be set up by an individual or by groups of people. The finances of a limited company stay separate from the business finances. This formation requires more management and reporting obligations. Those setting up a limited company will often employ the services of an accountant for help.
- Partnerships: two or more people may register their business as a partnership. All parties will share equal responsibility for financial affairs.
Many countries make the process of registering a business simultaneous with declaring your business name and your new taxation status. However, some do not and people starting a business in these places will need to inform the taxation office of their new business.
You may even have to let loan companies know that you have started a business. This includes student financing authorities.
Make a marketing strategy
A marketing strategy may be included in your business plan. Others will keep this aspect separate from the plan, especially if it is extensive. Marketing is key to business success and will need careful consideration. Nowadays, there are lots of channels of marketing.
Businesses can make use of tried-and-tested techniques such as advertisements or tap into digital marketing. The latter may involve social media campaigns, pay-per-click marketing (PPC), digital adverts and more.
Even though all businesses can use all marketing strategies, it is unlikely that a startup can afford the funds and time needed to use all of them.
The good news is that not all marketing avenues offer an effective return on investment. The best avenues for your new business will depend on what it does and its aims.
Marketing strategies will need to be drafted up at the start of your business’s formation. At this stage, it is worthwhile researching what channels will offer the best return on investment for you. You could do this independently or you may want to employ the help of a team of professionals.
Their experience can be invaluable and ensure the business makes the most of its marketing budget.
Source suppliers, staff and more
A business plan will include the details of services and products. It is therefore important to look into the ways that you will supply these products and services. This means looking for manufacturers, office space, warehouses, suppliers and/or staff.
Some businesses may also need to look into other legalities such as insurance. These are important details to be finalized in the beginning, but they hinge on the type of business and how it plans to operate.
Get a website
The internet is a valuable resource for attracting cold leads. The most successful businesses use their website to effectively promote their products and services. Even new businesses can have a website to do just that.
There are lots of hosting sites to choose from and domain names come relatively cheap. For these reasons, there is no reason why any new business should not take immediate steps to get a website.
Open a business bank account
New businesses will need to open a business bank account. The only businesses exempt from having to open one of these bank accounts are those businesses which are registered by sole traders. This is because sole traders are led by individuals.
Limited companies and partnerships require a business bank account because the finances of the business may not be the responsibility of one person.
There are many types of business accounts available with a number of perks. When opening a business bank account, it is beneficial to look around at what is available.
These six tasks are some of the most important in the early stages of setting up a business. They are also tasks that stop would-be-entrepreneurs from asking the questions of how to start business. Complete these tasks effectively to get your business off to a good start.
The importance of a website was already discussed. However, it is even more essential for those who are going to operate an online business alone.
These businesses put more weight on their online presence because that is the only avenue to their products and services.
These new businesses should aim to put even more effort into their website.
This may include paying for search engine optimization (SEO) services. Buying SEO audits, SEO keyword research and similar services can help you grow an online presence by attracting more organic visitors.
These investments are worthwhile to all businesses – new and old – but even more so to online businesses.
Some people who want to own their own business do not research how to start a business. Instead, they research existing businesses to look into buying them. This is a suitable alternative to many.
It is especially suitable for those who already have business experience. Buying an already established business is best considered by those with experience in the industry of the business for sale.
Moreover, when buying a business it is recommended to get legal professionals to look over the respective documents.
This guide has covered a lot of information on how to start business, including the prerequisite tasks before starting out. Here are the key takeaways from the different sections above:
- Business ideas may be unique and innovative, or they can be the same as what has been done before. However, in either situation, they are often developed over a long period and always answer to a solution or a demand.
- New businesses will need to make a business plan. These plans can be sued to secure investment or can just be used as a blueprint over a set period of time. They will include lots of details from finance to hierarchical arrangements.
- You must register your new business as a sole trader, limited company or a partnership depending on its setup. New business owners may also need to register a business name, declare their tax status and notify loan companies.
- Finalizing marketing strategies from the outset is important to ensure time and money is spent wisely for the best return on investment.
- Other tasks may need to be completed. Deals may need to be made with suppliers, staff may need to be recruited, working premises leased and insurance purchased.
- Businesses should have a website made to promote their services and products. Online businesses may want to invest more into their website with SEO services due to this being their only presence.
- Unless the new business is registered as a sole trader, a business bank account will need to be opened.
- Not everyone needs to know how to start business from scratch. Another option is to buy a business. However, this should only be done by experienced people with knowledge in that business’s field. It should also be done in cooperation with the required legal personnel.
A final word
That concludes our guide on how to start business successfully. Turn this article into your new-business checklist to help you succeed. Naturally, some of the tasks and questions on this guide will not be relevant to you and your new business.
Although, many of them included must be carried out completed for your business to trade legally. If you have a business idea that could change the world or just one that will make a difference to a certain group, you now have the understanding of how to start business with the preparations to succeed.