Starting a business is exciting but also dem anding. It involves planning, execution, marketing, managing financials and other legal activities. These 12 easy steps can help you plan, prepare and manage your business and ensure your company is ready for success.
Step 1: Identify the need gap
“A Business is simply an idea to make other people’s lives better”
– Richard Branson.
An idea can be developed into a successful business if it fills up any existing need gap and adds to the quality of life of your target customer. Thus, it is imperative to identify the need your idea meets and the impact it has on the life of others.
Also read: Top 5 simple steps to generate a wonderful business idea
Step 2: Take time to brainstorm
“Think like a customer”
– Paul Gillin.
An initial idea is always great, but it is important not to get overwhelmed by the notion, rather reconsider it and think about every aspect before deciding to give it a business form. Optimism is good but only if it is balanced with a little negativism. Think about your idea from the viewpoint of a customer.
Step 3: Conduct a personal evaluation
“Know yourself, and work in a job that caters to your strengths. This knowledge will make you happier”
– Sabrina Parsons.
Once you zero down on the idea, it is important to analyze your strengths and weaknesses to judge if you and your business would suit each other in future. To start a successful business, passion alone isn’t enough.
Step 4: Evaluate your target market and existing competition
“Competition is a good thing; it forces us to do our best”
– Nancy Pearcey.
Next, it is important to analyze your target market. Here you may opt for an official market research. Currently, there are a number of agencies that help you accomplish the same. The market research report can also help you get the funding in case you opt to finance your business from outside sources. Nonetheless, it will give you an insight into the kind of dem and you can expect for your product or service.
Along with the target market, it is important to analyze your competition as well. Carefully study the business of your competitors, their USP and their core strengths and weaknesses.
Also Read: Determining the competitors in the Market
Step 5: Write a business plan
“Planning is bringing the future into the present so that you can do something about it now”
– Alan Lakein.
Once you are confident of executing your idea, put together a concrete business plan. Here you need to come up with a “feasibility plan” or a “startup plan.” This business plan will help you figure out your idea clearly, plug in the loopholes, identify what needs to get done and how much money you will need in order to get started. This plan is also necessary in order to start a discussion with potential partners and associates.
Also read: How to write your business plan
Step 6: Identify and gather resources
“Doing more with less, is a crucial principle to learn; especially if you are going to be in business in this rapidly changing world”
– Robert Kiyosaki.
A few essential resources are needed in order to start operating. Create a list of everything you might need, when will the need arise and the costing of the same. While planning resources, also identify resources which although not needed now, but will be required in the near future so that the funds can be arranged accordingly.
Step 7: Get the finances in shape
“Watch your finances like a hawk”
– H. Jackson Brown, Jr.
If you are looking to seek outside funding, it is imperative to have an impressive and convincing business plan ready. This plan is different than the feasibility plan. The main parts of a business plan include the executive summary, the company’s structure, a description of the service or product line and what makes the company unique, an analysis of the target market and the existing competition, the marketing and sales strategy, financial projections plus any additional useful information.
Although most investors will expect you to have the business plan, but the business plan alone will not get you very far. You need to have a good pitch as well.
The main types of investment options include:
- Own savings
- Family and friends
- Commercial banks
- Venture capital and angel investment
In addition to the funding, you also need to hire an accountant to manage your books and keep a tap on your taxes.
Also Read: Top 10 funding Options for Your Startup
Step 8: Choose the right legal structure for your business
“When you make a choice, you change the future”
– Deepak Chopra.
Registering your business is the first step towards making it real. Start with carefully analyzing the pros and cons of different business formations.
Various types of business structures include:
- Sole Proprietorship
- Partnership
- Limited Liability Partnership
- Private Limited Company
- Public Limited Company
- Not for profit or Cooperative
Other than registering the business, you need to decide the business name and research for its availability, choose a business location, register the company for taxation purposes and obtain business licenses and permits. It is best to engage an attorney to take care of every aspect.
Step 9: Launch your business
“You don’t have to be great to start, but you have to start to be great”
– Zig Ziglar.
Upon registration, you are ready to begin. But “beginning it” does not come that easy. You need to put every necessary thing in place, e.g. business bank account, phone connections, suppliers, customers, after sales services, stationery, business cards, etc. But the good thing is that you don’t need all the things in the very beginning. Just analyze carefully what are the most critical of these things, put them all in place and launch your business.
Everything will not be right from the first day. Expect to make mistakes. This is natural and as long as you learn from them, also beneficial.
Step 10: Launch marketing and business awareness campaigns
“A lot of times, people don’t know what they want until you show it to them”
– Steve Jobs.
In the today’s competitive world, it is highly important to plan you advertisement campaigns before you even start your business. In addition to the traditional marketing mediums, you should try social media as well, considering it reaches more number of people and is relatively cheaper. Choose the right social media channel for your company and be sure all your web pages are regularly updated.
Step 11: Create a maintenance list
“Effective leadership is putting first things first. Effective management is discipline, carrying it out”
– Stephen Covey
The maintenance list is needed to keep the business running. Note down all the tasks which you need to do on a regular basis to run your business, namely doing payroll, keeping up with inventory, updating the website and regularly blogging and using social media. These tasks are like housekeeping, and this list will ensure they are done and dealt with automatically.
Step 12: Set future goals
“Setting goals is the first step in turning the invisible into the visible”
– Tony Robbins.
One needs to continuously keep setting goals for future, to move forward. At the same time, it is also important to remain flexible with the goals. Examine what new goals need to be set and what needs to be done so as to be successful.
