How to Start a Business

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This section of our website is meant to show you the basic steps of how to start a business, whether it is sole proprietorship, shared ownership, a shareholder company and so on. In previous articles we explained how to start this or that type of business, generally presenting ideas that are easy for everyone to accomplish. Today however, we are going to expand on the subject and show you how to start a business no matter what your idea is. If you follow these steps it will be much easier for you to get organized and deal with one thing at a time.

Keep in mind that things are never as simple as they seem, and that you still have to e determined and hard-working. You need to have patience with things and avoid taking any rushed decisions; while being in business sometimes means making compromises, try not to make too many at this stage of the process. If your idea is successful, then you need to do things exactly as you envisioned them, and be prepared to wait a little longer for things to happen. When learning how to start a business there are many things to take into consideration, and you don’t want to be open on the market before you’re sure everything is in place. Here is where you have to start:

  • Write the business plan – A previous article on our website explains what a business plan is and how to write one, but for the sake of comprehensiveness, know that it has to begin with an executive summary that shortly relates what your idea is and what you hope to accomplish. It can be like a business philosophy, with examples on how you plan to grow, the products or services you want to offer and where you see the company in the future. Continue your business plan with a description of the company and show what makes you different from other companies. No business can be successful without a market analysis, which shows you whether your product or service is demanded on the general market, or in the area where you want to set up shop. Continue by presenting how you aim to organize and manage the company, and what the structure and hierarchy will be; see how many employees you would need, what their qualifications and responsibilities will be and so on. Present once more, in detail, your products and how you aim to offer them, then continue with your ideas about sales and marketing. Although this is a continuous process, you have to start with an idea of how to make your products and services known to prospective consumers. If you need investors and funds to start the business, this is the time to mention it and to present the details of how you would like things to go, such as the sum of money you need, whether you offer shares, and to what extent you keep control of the company. These are the main subjects that have to be included in your business plan; for more information search other specialized websites detailing this process step by step.
  • Go to business classes – If this is your first business, then it would be a good idea to take some classes, or hire for some assistance and training. Knowing where everything goes and how everything has to be done only on paper will be nothing like the practical, actual thing. When you are faced with problems head-on you need to know how to react, what to ask for and how to avoid any mistakes. With a little training you will be more familiar with certain terms and concepts and prospective business partners, competitors and customers will take you more seriously.
  • The business location – If your business is not Internet-based, then the location is essential. If, for example, you want to open an accounting firm, then you need to try as much as possible to find a location in a business center for example, or somewhere where people can reach you easily. A bakery business should be located in an area where people go shopping for food – such as the market -, or in a location where lots of people work and need a place to take lunch or breakfast.
  • Get the money – Unless you have all the money you require to open your business, you need to find as much as possible about government loans, bank loans or how to get investors. Your business training may come in handy at this point, because finding prospective investors is not enough; you have to know how to convince them that investing in your business is a good idea. For example, while presenting your business, focus more on what they have to gain from investing, rather than insisting on how brilliant your idea is and what you will get out of it.
  • Legal status – Find out from the local authorities what the legal status of your business is, what laws you must abide, what taxes you have to pay, what types of insurance you need and so on. Hiring a lawyer may be a very good idea, even though you don’t need one except for consultation.
  • Register for taxes – We already mentioned this, but it is a very important part of keeping a business alive; the last thing you need is trouble with the IRS or the government, so make sure you know what taxes you have to pay and where to pay them.
  • Licenses and permits – Depending on the type of business you’re opening, find out from the local authorities what types of licenses and permits you need in order to operate legally.
  • Hire employees – Decide how many and what types of employees you need and put up some ads in the local papers, on the internet and so on. Furthermore, find out what your obligations towards your employees are, whether you have to insure them, the taxes you have to pay for them and so on. Be very careful when hiring and don’t settle for compromises.

These are the basic steps of how to start a business and if you follow them precisely you shouldn’t meet any impossible obstacles.

May 2022