A Step-by-Step Guide to Starting a Business
Starting a business does not have to be overwhelming. Knowing what to do and where to go for help can take most of the worry out of the process so you can focus on the products or services you want to provide.
Refine Your Idea
One common mistake most new business owners make is to offer too much too soon. By spreading yourself so thin, you will not be able to fully focus on that one really great idea.
“Why” is the most important question: why are you starting a business? Do you enjoy bringing something unique and creative out to the world or simply have a passion for making life easier? Here’s a few more questions to ask yourself:
Are you offering a service that can stand out from the rest?
Do you have a unique product that fulfills a specific need?
Who is your competition? Are you competing against a megastore, chain, or smaller business that has been around for generations?
How can you stand out from that competition? If you are faster, cheaper, or have better quality, then you have a good business idea.
Who are you selling to? Can you easily define your demographic?
Consider a Franchise
If you find that your idea is not that unique and the competition is already strong, consider buying into a franchise. Franchises work well because the business model is already in place and proven. All you need is a great location.
Looking for up and coming franchises will save you a ton of money upfront and more choices in location. For example, Cheesy Street Grill has a newly formed franchise opportunity with several locations in Massachusetts. Recognized by Rachael Ray, this comfort food restaurant works well in a variety of settings including rest stops, stadiums, colleges, and even food trucks. With a proven track record before and during COVID-19, they are now accepting applications from most states in the U.S. with a much lower than average buy-in.
Write a Detailed Business Plan
Once you have the purpose of your business and know your demographic, define your end goals. What do you hope to accomplish?
This is the time to take a close look at your financial picture. How will you finance your start up costs? How much can you realistically afford? Every business is different and start up costs will vary greatly with some costing less than $1000 and some requiring much more. Will you require an SBA or other type of loan? How will you secure that loan?
This is the time to be brutally honest with yourself. Rushing past these important questions will only come back to bite you in the near future. Perform a break-even analysis to determine if the profit from your business is worth your time and effort. Click here for an break-even analysis guide by Business.com.
Every business is different and each require certain items to get started. While we all want our businesses to look established immediately, it is important to avoid overspending, especially before the profits start rolling in.
Commercial loans are available although a small business loan through SBA may be easier to secure. If you require a significant amount of money, consider bringing on investors or equity crowdfunding. Click here to learn more about Business News Daily’s startup finance options.
Remember to think about your exit strategy. Do you want a business that you can sell when you are ready to retire? Will you need to sell inventory or stock when closing shop?
Conduct Thorough Market Research
This is more than just knowing who your competition is. You should be researching every piece of public data about them. There are ways to see their SEO and find out exactly how they are attracting customers. The U.S. Small Business Administration offers an excellent guide here with sources on market research and competitive analysis.
Register Your Legal Business Structure
Your official business structure affects how you file your taxes and determines your personal liability. Here are your options:
Sole Proprietorship - if you entirely own your business and are responsible for all debts and obligations. Your own personal credit can be affected by this.
Partnership - Two or more people are personally liable as business owners.
Limited Liability Corporation - This structure has the legal protections of a corporation with allowing for personal tax benefits.
C-Corporations - Corporations are good for new businesses that plan to “go public” or intend to seek funding for venture capitalists.
It is always a good idea to run your business idea by a business or legal advisor to ensure you have the correct business structure.
Once you decide on the structure, you must register with the government. Corporations will need an “article of incorporation” document which includes your business name, business purpose, corporate structure, stock details and other information about your company. If you do not have a corporation, you still need to register your business name (aka DBA Doing Business As). You have the option to trademark your business name for extra legal protection.
If you have anything other than a sole proprietorship, you may also need to get and Employer Identification Number (EIN) from the IRS. Even with a sole proprietorship, you may still want to apply for an EIN to keep your personal and business taxes separate. Click here for more info from Business News Daily.
Get All Required Licenses and Permits
Check with your local city hall to see if you need any special permits or licenses to run your particular business. You can search for specific licensing requirements by state through the SBA Database.
Don’t forget insurance! You may need to be protected from property damage, theft, or even a customer lawsuit. Plan to have your policy in place before your launch.
Choosing Your Team and Vendors
You will need honest and dependable employees and vendors. Whether you are hiring directly or outsourcing, you researching their experience, track record, dependability, recent reviews and more is imperative.
If you are on a strict budget, this may be the time to think creatively. Perhaps you can hire a virtual marketing director and just pay a fraction of the cost of a full time employee.
Create a Brand
Online, first impressions are everything and with the ever-increasing competition, you may get only one chance. You need to make your business appear approachable, familiar and trustworthy, and above all memorable. Your brand must be clear and reflect exactly what your product or service represents while appearing likable and invoking familiarity. Click here to learn more about creating a brand.
Set Up a Professional Website
Here is where many businesses drop the ball. A website is often the first point of contact with a potential customer or client. It is your new storefront. While there are many DIY website generators that create a beautiful website using a template, these cannot understand your company’s branding or know how to creatively captivate your viewers. Embedding successful SEO is a learned capability and unless you are creating websites on a daily basis, you are not going to know the latest algorithms from Google or other search engines.
Choosing the right web designer is crucial. You need someone that not only has creativity, but the experience and knowledge to ensure your website is professional, reflects your business in the best light, and has advanced SEO skills. Click here to contact me.
Growing Your Business
Creating a marketing plan is essential to building your customer or client base by continually getting word out about your business. Marketing is easily just as important as providing the highest quality product or service. After all, if no one can find you, you will not have any customers.
When you own your own business, you either have to find a cost-effective way to hire help or hire someone to teach you the ropes so you can do it yourself. You do not have to be an expert in every type of marketing. If you have an outgoing, engaging personality, you may find networking or video sessions work well. If you enjoy writing, blogging and using those blogs for advertising may be the key to your business’ success. A good marketing company will present you will all the options based on your mission and goals.
In A Nutshell
Now is a great time to consider starting a business. With the current pandemic situation, there are a number of new opportunities to provide services or products never seen before.
While there are a few steps to starting up your dream business, it does not have to be overwhelming. Make a plan, be realistic about your finances and goals, and find people you can trust to help where needed.
Refine your idea
Write a business plan
Research the market
Register your business
Obtain appropriate licenses/permits
Set up your team
Create a brand
Get a professional website
Make a marketing plan
I would love to be part of your new adventure and can offer branding and graphic design, website design, and a wide range of marketing and lead generation services (basically the last three items on the list). I can also assist and refer you to trusted professionals for any step mentioned in this article. Feel free to contact me to learn more.
5-star Google-rated Charlotte’s Web Design, LLC is a sole proprietor web design and digital marketing firm specializing in custom, professional websites, SEO, branding, logo design, digital marketing, content writing, and graphic design with over 35 years of technology experience currently working with over a hundred small businesses. Please contact me for a free consultation.
