There are millions of small businesses across the country. You will be surprised to learn that small businesses make up about 99% of all businesses. There are various reasons people consider starting a small business. Some of the reasons include having a unique idea, creating a career with flexibility to grow, investing in yourself, and working towards financial independence. However, not every small business is positioned to succeed. Only about a third of small businesses survive after two years of operation. Thus, you are likely to be in a challenge when you decide to run a small business. These are steps to help you start a business.
Do Your Research
You have probably identified a good business idea. Now you can balance it with some little reality. Do you have the potential to succeed? Remember that you should learn your business through the validation process. For a small business to be successful, it ought to solve a problem, offer something needed by the market, or fulfill a need. There are different ways you can identify a need. Some of the ways include trial and error, focus groups, and research.
Make a Plan
To make your business idea come to fruition, you need to make a plan. In this case, a business plan can guide your business from the start-up phase through establishment and even business growth. Fortunately, there are various types of businesses out there. If you are planning to get financial support from a financial institution or investor, you need to create a business plan. It must have the vital sections that banks and other lending institutions look for when validating your idea. If you are not anticipating financial support, then a simple one-page business can offer you clarity about what you need to achieve and how you can do it.
Plan Your Finances
You should note that starting a small business does not need a lot of money. However, it will involve some initial investment and the ability to cover ongoing expenses. You can record your expenses, insurance, market research, trademarking, inventory, and property leases on a spreadsheet. Other
things to record include rent, utilities, advertising, marketing, supplies, travel expenses, salary, and employee salaries.
Choose a Business Structure
You should note that your small business can be a partnership, sole proprietorship, or a limited liability company. Remember that the business entity you choose will determine a lot of things about you and your business like how to file taxes and liability.