So You Want to Start a Business_ Get Started in 7 Steps

The 2020s is the perfect decade to achieve your dream of being a business owner. You don’t even need to have a master’s degree—all you need is a vision for an amazing product or service, and the work ethic to bring that product before consumers. There’s no surefire method to make your business a success, but you can follow these 7 steps to take your dream company from idea to launch day.

1. Explore the Market

So you have an idea for a business—what should you do first? Your first step should be doing market research on your proposed product. “Market research” is how you can answer the following questions:

• Is there demand for my product?

• Which demographic is most in demand for my product?

• Where should I open my business to get the most profit?

The best way to do market research if you’re opening a small business is to run an online market survey. But you can also do market research just by visiting the area you want to open a business in and taking note of whether there’s similar businesses serving the area. If you’re opening an online-based business, it might not matter where you make your headquarters, although you might consider choosing a more affordable city to have an office.

2. Develop a Business Plan

Once you’ve determined that your business idea is viable, you’ll need to develop your business plan. A business plan basically describes all aspects of your business and how you intend to make money. Some of the things you’ll need to include are:

• Which demographics you’re targeting

• Your overall marketing plan

• A timeline of when you hope to open

• Business development plan

• Financing strategies

• Long-term business goals

You’re not legally required to have a business plan, but a business plan is important for two main reasons. First, it’ll help you stick to deadlines and serve as a reference point that’ll help you make the right business decisions. Second, you’ll need a good business plan to draw investors.

3. File the Paperwork

Your business may have to file taxes with the federal government and with your state and local tax authorities. Register your new company with the IRS, and then with your local tax agencies. You must do these things to legally operate your company. For more information, visit the IRS website and the websites for your state/city’s tax agencies.

When you register with the IRS, you’ll need to declare a business entity. If you’re opening a small business, you’ll most likely elect a sole proprietorship or limited liability company (LLC)—both are taxed in a very similar way, although an LLC affords you more protection from liability (at the expense of having to do more paperwork). You can always change your business entity as your company grows.

4. Get Financing

The hardest part about opening a business is getting the financing. If your business is going to need an office, employees, marketing campaigns, and physical and virtual infrastructure, you’ll need to get money to pay for all these things. Having a good business plan will help you find investors and convince them of the potential profitability of your company.

When you get financing from investors, you’re going to be under immense pressure to turn a profit before your funds run out—and if you don’t turn a profit, you may be required to pay back the investors for all the money they lent you. It’s financially risky, and that’s why most business owners prefer to start their company as a one-woman show. Here’s what you could do:

• Work from home, after your day job

• Put your own money into the business, and pay mostly for your website and digital marketing

• Don’t expand your business until you have a steady cash flow

It’s difficult, but this is also the least-risky way to start a company.

5. Build a Brand

Come up with a company brand. Your brand is more than just your logo. Your brand signifies:

• Your company values (sustainability, trustworthiness, young-and-hip, etc.)

• The market you’re targeting

• The image/feelings that your company evokes in customers

Make sure you stay true to your brand through all business and marketing decisions.

6. Build a Website

In the early days of your business, you may have to rely exclusively on your online presence to make a profit and spread the word about your company. Use a website builder (there are lots of software programs that are very easy to use) to create a website, and be sure to supplement it with social media pages and a Yelp page.

7. Hire Your First Employees

Before you open your doors, you may have to hire employees. Use online job boards like Indeed to post job listings, and make sure you thoroughly interview each job candidate to make sure they’re suitable for the position. Also, be sure to run background checks on each candidate before you offer them a job. There are lots of companies that offer a low background check cost, so there’s no excuse for skipping that step. A background check can help you ensure that you’re not hiring someone with a criminal background.

That’s all it takes to bring your business to life. Follow these 7 steps and you’re ready to begin a new career as a business owner.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes.