10-step guide to starting a new business

Last Updated at: Nov 04, 2019
A 10-step guide to starting your own new business

Beginners who are about to start a new business would require help on how to establish their business successfully. A step by step guide for starting a new business would help them in a great way. The starting stage of your business is crucial and thus the following guide would help young entrepreneurs.

Every person starts a new business with so many hopes and aims for achieving success. But only some business concepts are positioned for success. Also, only about two-thirds of businesses with workforces survive at least two years, and about half businesses survive five years. So one will be in a real challenge when they decide to take the plunge, ditch their day job, and become a business entrepreneur. The stage is generally set in the beginning, so one should make sure that they follow all of the required steps when they are starting a business which can set the foundation for success. Here are 10 steps that are necessary to start a business successfully.

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Business idea

If one has any idea of what business they want to start and which market they want to enter then they should do thorough research of existing companies in that particular market. One should try to analyze what the rival companies are doing and what can they do to get better than them. If the business can deliver something extraordinary which the other companies are not able to then the best business idea will come into existence.

Business plan

One needs to plan in order to make the business idea a reality. A business plan is generally a blueprint that will guide the business from the initial phase to the establishment and eventually towards the business growth. The business plan is a must for all fresh businesses.

If anyone is interested to take financial support from a financial institution or investor, a traditional business plan is mandatory.

Planning finances

Starting a business requires a lot of money for the initial investment and also for covering ongoing expenses before getting profits. So, it is always better to plan the finances which include licenses and permits, legal fees, equipment, insurance, market research, branding, inventory, grand opening events, trademarking, property leases, etc. for the business. If the finances are planned properly beforehand further conflicts can be avoided.

Determining the business structure

Before registering the company, one needs to decide which type of entity they want. The business structure will legally affect everything from filing the taxes to personal liability if something goes wrong.

If an individual is interested to own the business entirely and ready to be liable for all debts and responsibilities, they can register for a sole proprietorship. Along with this, a partnership, where two or more people will be held personally liable as business owners for the respective liabilities.

One can even choose a Limited Liability Corporation (LLC). This business structure has the legal securities of a corporation while allowing for the taxable profits of a partnership.

Register Your Startup Business

Naming the business

The business name plays a major role in almost every aspect of the business. So, everyone wants it to be a perfect one. One should make sure that they think through all of the potential implications as they explore the options while choosing the business name.

Once the name is finalized for the business, try to check if it is trademarked or currently in usage. Then, the name should be registered. One should not forget to register the domain name after selecting the business name.

Licenses and permissions

Licenses and permissions are part of the process when a new business is started. There are different business licenses and permissions that one needs to take depending on the type of business they are starting and where it is situated. So, one needs to do thorough research about what licenses and permissions they need to apply during the initial stage of business.

Insurance policy

Purchasing the right insurance for the business is a necessary step that should take place before the official launch. Dealing with incidents such as property damage, robbery or even a customer lawsuit can be costly. One needs to be sure that their office is properly protected. So, it is better to learn about the types of insurance policies required by the business.

Choosing business location

Setting up a business place is necessary for the operation of the business regardless of having a home office, retail location or a shared or private office space.

One needs to think about the location, equipment, overall setup and make sure that the business location works for the type of business they will be doing. One should also try to consider the idea of buying or leasing commercial space for better business.

Hiring employees

The hiring of the employees is a time taking process and it should be done as soon as possible. So, one should first make an outline of all the positions they need to fill and the job responsibilities allotted for that particular position.

Advertising and promoting the business

Once the business is started and running, then one should start attracting customers and clients. It is better to start with the basics by writing a unique selling proposition (USP) and generating a marketing plan. Then, explore all the business marketing ideas as possible so one can decide how to promote their business most effectively.

After completing these business activities, one will have all of the required bases covered. One should keep in mind that success does not happen overnight. But one should try to use the plan that is created to consistently work on the business which will increase the chances of success.

Make sure that you concentrate on the steps mentioned above when establishing a new business. You can also seek the help of an experienced businessman who can offer you some valuable inputs on starting a business. Be aware of agents who assure to help you in starting a business.