Seven Steps to Starting Your Own Business 10

7 Steps to Starting a Business

People are always asking for a list of fundamentals, a checklist they can use to start their own businesses. From your business type to your business model to your physical location, there are so many variables it’s not easy to come up with a list that will work for everybody. The key, regardless of what type of business you’re starting, is to be flexible!

That said, here’s are seven steps to take before you start your business.

Step 1: Personal evaluation.

Begin by taking stock of yourself and your situation. Why do you want to start a business? Is it money, freedom, creativity, or some other reason? What skills do you have? What industries do you know about? Would you want to provide a service or a product? What do you like to do? How much capital do you have to risk? Will it be a full-time or a part-time venture? Your answers to these types of questions will help you narrow your focus.

Step 2: Analyze the industry.

Once you decide on a business that fits your goals and lifestyle, you need to evaluate your idea. Who will buy your product or service? Who would be your competitors? You also need to figure out at this stage how much money you will need to get started.

Step 3: Make it legal.

There are several ways to form your business –– it could be a sole proprietorship, a partnership, or a corporation. Although incorporating can be expensive, it is well worth the money. A corporation becomes a separate entity that is legally responsible for the business. If something goes wrong, you cannot be held personally liable.

You also need to get the proper business licenses and permits. Depending upon the business, there may be city, county, or state regulations as well as permits and licenses to deal with. This is also the time to check into any insurance you may need for the business and to find a good accountant.

Step 4: Draft a business plan.

If you will be seeking outside financing, a business plan is a necessity. But even if you are going to finance the venture yourself, a business plan will help you figure out how much money you will need to get started, what needs to get done when, and where you are headed.

Step 5: Get financed.

Depending on the size of your venture, you may need to seek financing from an “angel” or from a venture capital firm. Most small businesses begin with private financing from credit cards, personal loans, help from the family, etc. As a rule of thumb, besides your start-up costs, you should also have at least three months’ worth of your family’s budget in the bank.

Step 6: Set up shop.

Find a location. Negotiate leases. Buy inventory. Get the phones installed. Have stationery printed. Hire staff. Set your prices. Throw a “Grand Opening” party.

Step 7: Trial and error.

It will take awhile to figure out what works and what does not. Follow your business plan, but be open and creative. Advertise! Don’t be afraid to make a mistake.

Above all, have a ball! Running your own business is one of the great joys in life!

About the Author Tim Berry is the founder of Palo Alto Software and Bplans.com. Follow him on Twitter @Timberry. Follow Tim on Google+ Read more »

RATE THIS ARTICLE 1 Star2 Stars3 Stars4 Stars5 Stars
Loading ... Loading ...

How LivePlan makes your business more successful

LivePlan: Online Business Planning Software

If you're writing a business plan, you're in luck. Online business planning software makes it easier than ever before to put together a business plan for your business.

As you'll see in a moment, LivePlan is more than just business plan software, though. It's a knowledgable guide combined with a professional designer coupled with a financial wizard. It'll help you get over the three most common business hurdles with ease.

Let's take a look at those common hurdles, and see how producing a top-notch business plan sets your business up for success.

Click to continue
  • Dr. Hussein Saraya

    thanks a million for this very helpful artcle….

  • Tunde Ogunremi

    We cannot thank you enough for the kind of support you are rendering the business community.
    Thanks indeed.

  • Jill_le

    Wow, great advices. Thanks a lot!

  • Adan Mohammednoor Isacko

    This is really an impressive steps in leashing the potentials in us……….. What an article. Thanks

  • Omphile

    Good stuff,just what i wanted

  • Dennisaber84

    Great ideas from good source.

  • Jaya Prakash

    i want to be practical in business

  • Pandi vel

    good one.but need some practical update.

  • https://me.yahoo.com/darlaimports1#4a1e2 importexporthomestudy.com

    I agree with the post that we can be our own boss. Work on our time and pace. Enjoy leisurely vacations. All of this is possible when we have our own business. That’s why I work from home selling import export goods…back then I was in real estate.

  • John

    great idea sir