At some point in our life, all of us have considering starting our own business. However, those who followed through are in the minority. Perhaps it was a lack of information, funding, or experience that stopped you from starting your business. Whatever the reasons may have been, there is no reason you can’t learn how to start one now. These days it is easier than ever to start a successful business. If you’re risk-averse, you can always test the waters through a lucrative side hustle first.
When the concern is more about your experience or funding – well, there are ways around that. Without further ado, let’s dive right into how to start a business successfully!
Do Your Research
The first thing you’ll want to do when you have an idea for a business or a side hustle is some research. Specifically, you’ll want to look at the market data and the details you can find about the logistics of it. This way you’ll start to learn the ins and outs of the industry and what you’ll need to do to get the business off the ground. More than that, you’ll know what is normal in the market. That’s good for letting you know how to be competitive. You may see holes that people aren’t filling, which you can. Additionally, it will help you with your pricing and expectations overall.
The one thing to avoid is getting too caught up in the research. It’s easy to do, but remember that you have to start at some point. Push yourself to gather the information and analyze it as fast as (reasonably) possible.
Write A Business Plan
Once you have the basic research out of the way, it’s time to write up a business plan. Make it detailed, and try to encompass every significant part of your business. This includes things like general pricing strategies, customer acquisition, and so on. This will help you by giving you something that can work as a guideline. Instead of winging it, you’ll have something you can follow to keep you on the right track. As new information comes in, or the market shifts, be willing to adjust your business plan accordingly though.
Find Funding
There are a lot of options for funding. You can practice your elevator speech and shoot for an investor, or you can request a loan from a bank. Just do your research and make sure with whatever you do that you’ll be happy with it in the long run. However, I think people overemphasize the need to find funding. There are many businesses and side hustles that require little or no money to start up.
If your business needs a substantial amount of money, try to get creative with it. You may be able to fund it yourself, or you can find a partner to split it with – a partner who will also help with the workload. Just don’t sell yourself short here!
Location, Location, Location
Now, I know that many modern business ideas can be almost completely remote. Often, the location where you base your business doesn’t matter much – outside of taxes. However, there are many different businesses where location still matters a lot.
Let’s take stores and restaurants as an example. If you go through the effort of starting a shop, or a nice restaurant, but do it in the wrong location, then you’ll be done before you even started. When your location impacts your company’s success or failure, make sure you put in the proper thought and consideration for it.
Legal Structure
The next step is determining the legal structure for your business. That will be based on how you want to handle your taxes as well as how much liability you’ll want to take on personally. If your business is something where you can get sued, limiting your personal liability can be crucial. The main ones to consider are:
- Sole proprietorship
- Partnership
- LLC
- Corporations
- S Corporations
For most people reading this article, sole proprietorships and LLCs are likely the most common and suitable structure for your business. Of course, before you decide, be sure to do your own research or hire a consultant.
Naming Matters
Be sure to pick a great name for your business. Like location, this can be really important. Depending on what you do, a simple and straightforward name (that describes what the business is) will be perfectly fine. For those with businesses that require strong marketing, like many business to consumer operations, that may not be enough. Try to brainstorm and see if you can come up with something that is catchy, but also gives the customer a good idea of what your business does.
Follow Federal And State Laws And Regulations
Now, as you start your business it is important to follow ALL federal and state regulations for its operation. This varies a mind-boggling amount between niches and types of businesses, so you’ll need to do more research here. There are many states and agencies you can contact for more information regarding local guidelines and requirements. In fact, your state likely has an online resource with a checklist or document to help you through the whole process.
If you find that you can’t figure it out on your own, or there are abnormal and complex requirements, don’t hesitate to hire someone who can help.
Additional Licenses
With the federal laws and regulations, just remember to do your due diligence. Depending on your niche, there may be additional licenses required of you. Make sure you get them and have all your paperwork done properly before you begin operations. You don’t want to start a business and then get crushed under a massive legal battle!
Open A Business Account
Make sure you open a business account with a bank that suits your needs. For personal as well as business use, I’ve always enjoyed Axos. Its business accounts are useful and incredibly competitive. However, they’re more suited for supporting online businesses. If you run a store or restaurant – or have physical locations that require a lot of payment processing – you may have better alternatives for your needs.
Do your research, find a good bank, and get it set up. It’s not a complicated process, but don’t forget about it and rush to do it at the last second. Just find what will suit your needs and run with it!
Find Employees With ZipRecruiter
If you need to find and hire employees, then ZipRecruiter is certainly one of the best options for you. It’s a job board than can help you find good, qualified candidates fast. Approximately 80% of employers who post a job on their platform will get a quality candidate through the site within the first day. So, don’t hesitate to try it out. The pricing is pretty competitive too! For more details, be sure to read my full review of ZipRecruiter and its uses here.
Prepare For The Risks
Whenever you start a business, there will be risks. Make sure that the type of business you start has risks that you’re comfortable with and can manage. To minimize risks, you can start small with a side hustle before you turn it into a business, or you can change the niche to something that has fewer of the risks you’re trying to avoid. With that being said, don’t be so scared of risks that you’re not willing to take any. When you do that, you’ll just get stuck in place and never start.
Decide If You Need Insurance
One final thing to check off the list is insurance. This comes with risk mitigation, and varies wildly. Some businesses need a lot of coverage, and many don’t. Consider your niche, industry, and the risks you’ll struggle with. Get the insurance that meets your needs and minimizes the risks you’re most concerned about. A slightly lower profit margin (as long as you’re still profitable) may be worth the extra peace of mind.
Conclusion
Well, that’s how you can start a business! Hopefully that gave you what you needed to start. For more details, try to find a local organization that helps small businesses get started. You likely have one near you and don’t realize it – great resources are everywhere, and they can help you more with your specific needs. For business inquiries and collaborations, feel free to contact me directly. Also, if you have any tips or suggestions of your own – let us know what they are in the comments.
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