Many people believe that more than 50% of businesses fail during the first year, but recent figures released by the U.S. Bureau of Labor Statistics show that this is not true. According to their data, 20% of businesses fail within two years, while only 25% survive after 15 years.
Starting a business requires a great idea based on the right target audience and plenty of research. Once you know that your idea has the potential product or service that solves a problem, you are ready to create a business plan that will help you get it off the ground. However, in the initial phases of your startup, you need to hit the ground running to ensure its formation gives you the room for growth known as scalability.
Initial Phases of Starting Your Business – A Very Busy Time
A business plan is essential for your startup. Of course, you can change the plan along the way. Still, it maps out everything about your business at this stage, including your products, business structure, funding, documentation required, leases, and financial projections.
As you initialize your business, it enters the seed stage, a time where you need to act quickly and decisively without spreading your resources – time and money – too thinly.
1. Branding Your Business With Its Unique Business Name
The most challenging step for your business is giving it the best possible catchy brand name. There are several ways to get creative business name ideas, including mind maps, freewriting, and word associations. Remember that the shorter and easier a name is to pronounce, the more catchy and memorable it becomes. Therefore, the idea is to create a unique and captivating name.
If this seems easier said than done, then don’t fret because business name generators make it easier than you imagined. Read more about how the TRUiC Business Name Generator uses AI tools to help you find a business name and available domain name that will brand your business and make it easier to find online.
You have an endless stream of business name options with just two keywords, your industry, and a location (if needed). Work on these ideas to choose or create a name that fits your business.
2. Registering Your Business Name
Now that you have found the perfect name for your business, the next important task remains deciding if you want to use a legal business name only or if you also want to have a separate brand name. If you decide you want a legal name and a “doing business as” (DBA), you must file separately for a DBA.
Before registering any of the above, do a business name and domain search in your state to ensure the names are unique. You also want proof that there isn’t a similar brand with a web presence, so run a U.S. Federal Trademark Search.
3. Incorporating the Business
You are now ready to register your business name and incorporate it at this stage. There are several formation options available in the U.S. Whether you decide to register your business as a sole proprietorship, partnership, LLC, or corporation is your choice.
However, it makes business sense to discuss the consequences of each with a legal or financial advisor, ensuring you meet the legal and financial obligations of the structure you choose. In addition, an LLC or corporation provides personal asset protection from any debts and liabilities. At this stage, you need to obtain an EIN and a sound accounting system to help meet your business obligations and compliance.
4. Giving Your Business Traction
The sooner you start selling, the better, so get your product into the market. Then, you can perfect and increase your offerings as you go along. While doing this, also dedicate the time to building an impressive website with high-quality content that is SEO optimized. Before starting, check competitor websites for ideas on what works best.
5. Marketing Your Business
Marketing your business is essential to giving it the traction it needs in this initial phase. So continually network, and don’t forget the importance of social media marketing in your efforts. Traction is about growing your customer base and ensuring your product reaches the market fit you planned.
Final Thoughts
The stronger your business starts in its initial phases, the better its chances of survival. So begin your business at a fast pace with great enthusiasm. First, however, make sure to stick to your business plan and continue making your audience aware of why you differ from your competitors, helping you grow your company into the next phase.
