Estimated reading time: 3 mins
Every business starts as an idea, and it is how you work on and develop this idea that determines whether or not it becomes a lucrative business venture. It is understandable to feel overwhelmed at this stage because of all the different things you need to do to get your business going. We are going to break down the actions you should take into smaller chunks, so you do not feel overwhelmed at any step of the way.
Write a Business Plan
The business plan you start out with should be simple enough and cover the scope of everything that needs to get done. Do not be overly ambitious and try to come up with the best business plan in the world. All you need is a roadmap that will guide you as you start your business. The business plan should cover:
- Your vision and mission for the business
- Well-defined goals and objectives
- Basis strategies for achieving your goals and objectives
- Simple actions to take to work through your strategies
Decide on a Budget and Financing
While you still need to keep costs as low as possible, you still need a budget that will tell you how much you can spend and where to spend it. Be realistic and conservative about your numbers and estimates, so you do not end up needing too much money upfront.
Once you have a budget, you also need to know how much you will spend each month. This is called the burn rate, and if you find that you will go through the money you have set aside before you become profitable, this is where you could consider the different financing options available to you.
Decide Your Legal Structure
Before registering the business, you need to decide what kind of legal entity it will be. The legal structure you choose will affect everything, including how you file taxes, your startup costs, and any licenses and permits you need to apply for.
It is always wise to start as a sole proprietor. This is the path with the least amount of paperwork and expenses and makes it easier to start than you might have realized. Do remember that a sole proprietorship puts you at personal risk, as you will be legally responsible for the business in case of debts, lawsuits, or other issues.
Register with the Government
To make things official, you should register your business with the government. This could mean registering a business name and getting the right legal protections, like filing for a patent or trademark.
Remember to also obtain all required licenses and permits, so you handle all these things at the same time.
Build a Team
You need to hire the right people if you do not plan on being the only employee. These people will not only help you with business operations, but they can also help you with marketing, product development, and more.
Separate the Money
No matter what business structure you choose, it is important to keep your personal finances separate from your business finances. Not doing this is the one mistake that makes filing taxes so difficult for new businesses. A free business checking account is relatively easy to open. All you need is to file some paperwork, your business licensing information, and an initial deposit.
At this stage, do not open up your business to any lines of credit yet. You will do that once you have some money coming in.
Getting your business online is a good way of setting up basic marketing and advertising channels. Ideally, you should have a social media presence and a simple website that lets people know who you are and what you sell or what services you offer.
It is very important that you follow the right steps when starting your business. Although every business is different and will, therefore, follow different paths, the steps above are a good place to start for almost any type of business.