How to create your own business? What do you have to do to start a business for the first time? What are the exact steps for a new business to be successful?
It's a fact: not all small businesses are positioned to succeed.
The reality is that only 2 out of 3 companies survive at least two years, and about half survive five years.
This indicates the real challenge you will face if you decide to take the step of becoming a business owner.
The scenario you set at the beginning depends on the assurance of taking all the steps necessary to start a successful business.
These are the 10 steps that will help you start a successful business and take you on the path to success as a business owner.
Surely you already have an idea in mind and now you want to know if it is compatible with reality.
To do this, it is necessary to answer the following question: does your idea really have potential?
To know if your business idea can lead to a real business, you will have to submit it to a validation process before going further.
For small businesses to be successful, always:
- They have to solve a problem
- Solve a need
- Offer something that the market demands
There are several ways you can identify this need: market research, focus groups, trial and error ...
As you get to know the market, you will know if there is a need for your product / service, who needs it, if there are competitors that already offer a similar solution, who are those competitors and how your business adjusts to the market. Remember that you will have clarify a few more points before starting your business.
Make a plan
All ideas need a plan to make them come true.
With a business plan you get a guide from the beginning, to the establishment phase (and even in the event of an eventual growth of your company), and it is essential for any business worth its salt.
Before continuing, you need to know that there are different business plans for each type of business.
For example, if you plan to seek financing from an investor, you will need a traditional business plan that will be used to establish the most common sections that investors will be able to analyze when they validate your idea.
If you are not looking for advance financing, you can make a one-page business plan to be clear about what you hope to achieve and how you are going to do it.
The good of start a small business, is that it does not take a large amount of money to get started.
You can start with a small investment, as long as you have the ability to cover expenses before your business begins to generate income. Spreadsheets are ideal for estimating the initial costs of establishing a business (licenses, equipment, legal assistance, insurance, market research, etc.) for at least the first year.
These numbers are so important because they will be the initial investment that you will need.
Choose the legal form of your business
Your small business can start with a sole proprietor, being a partnership, as a limited liability company ...
The legal form you select will affect many factors. They will be affected from the name of the company to your responsibility and the way in which you declare your taxes.
Don't worry: you can choose an initial structure and then reevaluate and change the legal form as the business and needs change.
Choose and register your company name
The name of your company plays a leading role in almost every point of your business, so you have to make sure you choose it well. Start by analyzing all the possible implications for choosing your business name.
Once you choose the name, you will have to check if it is registered or in use. Then, you will need to register it.
You will also have to register domain name once you are clear about what the name of your company will be.
Obtain the necessary licenses and permits
Bureaucracy is something you can't avoid when it comes to starting a new business.
You will have to know what licenses and permits for small businesses you need, depending on the type of business you are starting and where you are (for example, if you are in Colombia you will have to find out how to get the rut for the first time). You need to research what licenses and permits are required for your business during the startup process.
Choose an accounting system
Small businesses especially are more efficient when they have systems in place. One of the most important systems for a small business is its accounting system.
With an accounting system you can create and manage budgets, set rates and prices, conduct business with others, and file your taxes. You can set up an accounting system yourself or have an accountant. If you decide to do it for your story, research the different accounting software.
Set your business location
The location of your business is crucial to the operations of the company. You can have the office at home, in a shared or private office, or in a retail store.
Consider the location based on the equipment and general setup, making sure that the location of the business is compatible with the activity that it will carry out.
Prepare your team for work
Now is the time to hire the employees who will work in your company.
Take the time to establish the vacant positions you need to fill and the responsibilities that each one will have.
If you are not hiring employees, but instead subcontracting the work, now is the time to speak with your attorney to establish your independent contractor contract and start looking.
On the other hand, if you are a solopreneur you may not need employees or contractors, but you will want a support team. This team can include a mentor, a coach or your family - this is an ideal resource for advice, motivation and reassurance when obstacles arise.
Promote your new business
When your business is ready, it's time to attract leads and customers.
Write your unique selling proposition and come up with a marketing plan. Next, research small business marketing actions that help you market your business effectively.
Once you have all these tasks ready, the most important business startup bases will be covered. Keep in mind that success does not happen overnight, but that with a plan created to constantly work on your business you will exponentially increase the chances of success.