Considering starting your small business? Before you start your business, keep in your mind that not every small business is positioned to succeed. In fact, only about 2/3 business with an employee can survive at least 2 years and about 50% can survive in the past 5 years. The stage of starting a small business can be your foundation for small business to success.
Step 1: Make your research
This is likely identification for a business idea. You need to find out a small business that has the potential to succeed and also some problems that might you met when you open the business.
Step 2: make the plan
In order to make the business idea to reality, you need to make a business plan. The business plan is the blueprint of your business that will guide you from the start-up phase through the establishment and the business growth and it becomes a must-have for all new business. There are different types of business plans that need for different type of business.
Step3: plan the financial issues
Start a small business does not have to expense a lot of money, but it still needs initial investments as well as the ability to cover the ongoing expense before turning the profit.
Step 4: choose your small business structure
When you build your small business, you should choose the business structure, whether it will be a partnership, sole proprietorship, corporation, or it should limit the liability company (LLC). The business entity that you choose will influence many factors starts from business name, liability and how you need to file your taxes. After choosing the initial business structure, then reevaluate and change the structure as the business grows and it needs some changes. Depend on the complexity of your business, and then it may be worth for invest consultation with attorney or CPA that will ensure you make up right structure option for your small business.
Step 5: take and register the business name.
The business name will have a big role in many aspects of your business; therefore you will need a good one. Make sure that you have thought to all through the potential implications as you explore to the options and business name it. Once you have picked the name for your business, also need to check out if there is any trademark or it has already currently in use. After that, you will need to register it.
Step 6; get the license and permits.
This is a process that involves the paperwork when you start your own small business. There are wide ranges of small business license and permits that can be applied to the type of small business you choose and where you located.
Step 7: choose the accounting system
A small business should run an effective accounting system as it is needed to creating and manage your budget, assets rates, and prices, conduct business with other partners and also file the taxes. You can hire an accountant, or set up your own accounting system.
Step 8: set up the location for your business
Location is important to operate your business, whether it will be a home office, shared or private office space, or rent from the retail business location. Think about the equipment, your home to office location, and also the type of your business.
Step 9: get ready with the team
If you consider hiring the employee for your small business, then it is time for start recruiting process. Make sure that you take time for outlining the positions that you need to fill, and the job description for each position. The small business administration will help you in hiring the first employee that is useful for a new small business owner. If you not hiring the employee, then it is time to work with the attorney to get independent contractor agreement and start research. The last, if you a solo entrepreneur and hit the small business alone, then you may still need to have support team such as mentor, small business coach, or your family that will serve you and motivate, suggest and reassurance when the road gets bumpy.
Step 10: promote your small business
Once the business starts and running, then the next step that you need to do is start to attract clients and customers. You will need to start with marketing strategy such as write unique selling proposition (USP) and create the marketing strategy. You also need to explore as many as a small business marketing strategy that you can apply to promote business effectively.
Once you have completed to the start-up business activities, then you will have all basis of the small business to cover. Always keep in your mind that build small business and gain success is not happen in overnight. Use the marketing strategy and business plan that you created before and work consistently to increase and grow your small business.