More people than ever before are swapping their traditional forms of employment to go it alone and start up their own business. It has become a very popular employment move in the last few years, and now there are currently 28 million small businesses in the US today.
However, there are many different steps and considerations you must follow when starting your own small business if you want yours to be successful. A lot of small startups fail in the first year, and it can be very difficult for new businesses to develop their identity and to stand out from other more developed companies. But by doing the correct groundwork and following a developed start-up process, you can increase your chances of creating a successful business.
To make this easier for you, we have put together this guide on how to start up your own small business in these seven easy steps.
1. Do Your Research.
It is important that you have considered your business idea carefully before bringing your idea to life. This involves researching the industry, the current market, and how much competition you will face. If your business idea is in an industry that is saturated with other competitors, then you may have to carefully consider what makes your business different. You will need a unique selling point if you want to stand out from the crowd and convince customers that they should do business with you. If you have already been employed in the industry you want to open your business in, then you should consider the gaps in your knowledge and perhaps develop your skills in leadership and management.
2. Choose a Name for Your Business.
Every business needs a catchy and memorable name so that you stick in the mind of potential customers. You need to make sure that your name is somehow related to who you are or what you do as you want it to be clear what your business is about. You may also want to research the names of other businesses in the industry; you wouldn’t want to sound too similar to a competitor, as this will make developing your brand indemnity more difficult. Once you have decided on a name for your business, then it is advisable to register it as your own. You should also take into consideration a domain name that goes with your business name and check to see if there is a URL available for you to develop a company website.
3. Pick a Location.
Nowadays, many businesses solely operate online due to the dramatic transformation that has taken place in how people buy things in recent years. E-commerce sales are growing every year, so it is no surprise that new businesses are being set up online instead of in physical locations. Therefore, this is something you should seriously consider when starting up your own business and should weigh up the factors for and against each option. If you are thinking about setting up a physical location for your business, then you should consider the financial pressures this puts on your new business, such as rent and upkeep costs. While you don’t have to consider renting costs if you set up your business online, you will still have to account for the website development costs that come with setting up an e-commerce business.
4. Make a Business Plan.
Many people disregard the usefulness of a business plan and think that small businesses that are being set up nowadays don’t need a business plan in order to be successful. However, you should still create a developed business plan so that you have all your ideas and concepts clearly noted down in one place. This will help you to follow a start-up process during the early days of creating your own business and you are less likely to forget anything. Your business plan should also consider financial plans and how you plan to make a profit.
5. Choose a Business Structure.
Different businesses have different structures, and it is important that you consider what structure your business should take beforehand. You can either create a small business that is a corporation, a limited liability company (LLC), or a sole proprietorship. The business structure you decide on will determine how you file your taxes, your liability, as well as your overall business name (and how you will file for it). You can always change the structure of your business as you grow and develop over time. If you are unsure how to go about setting up the structure of your business and, for example, want information on how to start an LLC in Florida, then you should use the advice and information provided by TRUiC who can tell you everything you need to know about how to form an LLC in Florida.
6. Sort Out Your Finances.
You should think about your own personal finances before you start a business, as it can be a costly venture to take on. If you have any debts or money problems, then you should aim to sort these out before you go ahead putting money into a startup. While not all small businesses will require a considerable amount of money, you should expect to make some investments in order to cover the costs that come with creating your own business. To make sure that you have anticipated all the costs that you may be faced with, you should start your own spreadsheet of every outgoing expense. From insurance to necessary equipment, you may be surprised at how much you need to pay for during your first 12 months of business.
7. Check Licenses and Requirements.
Depending on what type of business you plan to open, you should check whether you need any licenses or specific requirements for you to operate legally. However, this will likely vary between states.
If you want to open your own business, following these seven easy steps can improve your chances of success while making the process a lot less stressful.
Young Upstarts is a business and technology blog that champions new ideas, innovation and entrepreneurship. It focuses on highlighting young people and small businesses, celebrating their vision and role in changing the world with their ideas, products and services.