Entrepreneurship isn’t easy. Starting a business requires a lot of hard work and determination. But anyone can start a business and that’s what makes entrepreneurship so great. If you’re reading this article and thinking about it, then this is the place to be. Although the process is quite long and can take months if not years to complete, we will give you the rundown in 5 steps. So with all that said, let’s start.
Develop An Idea
Many consider this step to be the hardest. And rightfully so as anything but the right idea will result in failure. That is why you should spend a lot of your time thinking and developing your business idea. If you happened to have an idea all figured out, then you can skip this step. But if not, then listen up.
If you’re stuck on the idea part, then there are a few things you can do to get you unstuck. The best way to come up with potential business ideas is to think of problems. Think of an industry you’re familiar with and think of a problem. Once you come up with a few, do some research and figure out if someone has already solved that problem. Chances are, after weeks and months of brainstorming you’ll eventually come up with a problem that doesn’t have a solution.
One other thing you’ll need to do is explore markets and determine if the idea is profitable. There is no point in developing an idea that won’t make you money. The whole point of entrepreneurship is to create something that will turn into a business.
Write Your Business Plan
Once you’ve figured out your idea, it’s now time to write the business plan. This step is very important as no business will survive without a plan. A business plan involves plenty of things. From a roadmap that helps you reach goals to how you plan on growing your brand to how you plan on securing funding, everything around your business will be written here.
Many entrepreneurs understand the importance of a business plan, but for the wrong reasons. Securing funding is essential for startups. And that’s certainly the purpose of a business plan. But the primary purpose of this paper is to define your strategy, tactics, and how you plan on executing milestones, deadlines, and cash flow.
Making It Legal
Many rush the business starting process by starting with this step. But that’s an obvious mistake to avoid making. We mentioned the importance of planning. No business will survive without a plan. That’s why you focus on the two previous steps before you make your business legal.
But once you’ve got all that taken care of, it’s now time to register your business. This is the step that involves plenty of paperwork. Unless you enjoy doing paperwork, we suggest you hire an attorney to take care of the details and help you get the necessary licenses and permits.
This is also the step that you have to figure out your business structure. There are four to choose from. Those are sole proprietorship, partnership, corporation, and LLC (Limited Liability Company). We suggest you dig deeper into these four to determine which is the right one for you.
Like it or not, you will have to somehow secure funding for your new business. The amount of money will depend on various things, but size and goals are the two most important ones. If you aim for the stars, then you’ll need more money to build your rockets. But if you aim small and look to grow through time, then smaller investments will do the trick.
Regardless, there are multiple ways to secure funding. It’s safe to say that none of these will work if you don’t have a good business plan to show. If you’re looking to secure funding, then you can go to venture capitalists, angel investors, banks, SBA loan givers, and friends and family.
Even with you go to some of these investors with a solid plan, that doesn’t guarantee you funding. Your idea needs to be interesting enough so that these people invest in your business.
Pick A Location
The very last step of the business-starting process is the location. Your business might have a physical location, or it might be online. Both are excellent options nowadays as brick-and-mortar stores operate to the same degree as online stores. What you will need to take into account the various expenses that come with owning a physical location.
This doesn’t have to be a store, it could be an entire building. But do take these expenses into account.
Be Ready To Grow
Reading this article you might think that starting a business is a piece of cake. But do not underestimate the business-starting process as you could just as easily get lost it in. We hope that these 5 steps somewhat explain to you how the process goes from start to finish. And we hope that our article has served you well and prepared you for the journey that you’re about to embark upon. The last thing to do is to grow your business and become a successful entrepreneur.