Steps in Starting a Small Business
As someone rightly said, “a big business starts with a small idea”, which means that you must have great ideas that can fetch a lot of profit. The idea of course should be free of any illegalities. It should give you an opportunity to serve the people and cater to their needs. Also it should be commercially viable and practical. Once your vision and aim is clear along with the start up idea, you are ready to move on to the next step.
Market research is one of the most crucial steps in starting a business. You must have a thorough knowledge of the sector you are planning to enter in. You also must know about the competition and the challenges you will have to face. In short, you must have the complete knowledge about the industry. This will help you start with proper precautions and will also help you taste the success a little earlier.
A business plan is very important where you need to pen down every detail of the business including the details of capital investment, type of business, money transactions, marketing strategies, advertising strategies, etc. It will help you understand the proposed amount of money required in executing your plan. It is also essential when you go asking for grants and finance to the investors, lenders, or finance companies.
Once you have a plan ready, you also have to arrange for the required finance. You have to decide if you want to start a business in partnership, proprietorship, a corporation, or a public holding company, etc., and accordingly have to go and visit the lenders. You can also seek loans or government grants. You can use your savings or apply for a bank loan. It is suggested to consult your financial adviser before you take any such major decision. But whatever way you choose, you have to submit your business plan to the lenders or associates.
Once you arrange for the finance, you must invest in the location or area where you wish to start a business and complete all the legal formalities associated with it. If it needs a license or permit, then acquire it before you start. You may have to register for local and state taxes to obtain tax identification, compensation for the workers, employee responsibilities, unemployment or disability insurance, etc. You also have to register your business with a state authority for your identity. These steps will help you determine the legal framework of your business that would help you avoid any legal problems in the future.
With the right advertising and marketing strategy, you are sure to start on a positive note. Make sure that you are providing your clients or customers with satisfying services. You can also ask customers to give their feedback so you can improve upon it. Always maintain the quality of your goods and service that would help you retain the customers. In addition, have some interesting offers for the first few days to attract more customers. Once you establish the name and trust among customers, your business will certainly flourish.