So, you’re ready to step into the world of entrepreneurship and become your own boss by opening your own business. The idea of working for yourself and setting your own hours is attractive, but ask any small business owner and they will tell you how much work it really is. Of course, you’re prepared to put in the work—otherwise, you wouldn’t be ready to start your own business in the first place—but maybe you aren’t sure where to get started, or don’t know the steps to take to launch your business.
There are some obvious steps, like finding the right location for the business and branding it with a name and logo, but the other less obvious steps are critical for success. In order to reach your business goals, you have to follow the right path. Instead of guessing or doing it by trial-and-error, you can follow this quick guide to turn your business from an idea into a reality.
Write a business plan
You’ve got your idea for a business, so you need to refine it and come up with a business plan before rushing in and opening. The first step is researching other companies in your industry or in the same niche to see what they’re doing and if and how you can improve on it. If your business can deliver something to customers that the other companies don’t, or offer the same service or product but faster or at a lower cost, then your business idea is solid and you can move on to creating a plan.
Your business plan should answer a few questions:
- What’s the purpose of your business?
- Who are your customers?
- What are your goals?
- How will you finance your business?
Having a solid business plan will help guide where your company is going, how you can overcome any obstacles or difficulties, and what it will take to sustain it. If you’re ready to start writing out your plan, you can find some helpful templates here to get you started.
Figure out your finances
Opening a new business can be costly so figuring out how you’re going to cover those costs is a must. Some entrepreneurs have the means to fund their business already, while others will need to secure financing through other ways, like finding investors or taking out a loan. In getting a loan, you must do your research first to find the best small business loans that will work for you and your business. You can get more information about business loans and the steps you need to take to secure one from Innovative Finance. They also offer a list of the best lenders so you know where to turn.
Decide how to legally structure your business
You have to register your business as a company, but before you do, you need to decide what kind of business is it. This is important because it legally affects how you file your taxes and what kind of personal liability you have, plus everything in between. You can separate yourself from your business and form a corporation, or you can choose to be totally responsible for all aspects of the business (including debts and other obligations) and register it as a sole proprietorship. There are implications to both options, so do some reading on each before deciding and registering with the government and the IRS.
