10 Steps to Start a Business
Starting a business requires dedication, hard work and solid foundation. If you’re ready to put in the effort to building a business, THL’s ten step checklist will help you transform your idea into a revenue generating, legal entity.
In this article:
1. Idea
If you’re planning on starting a business, you probably have an idea of what you want to sell, or the industry you want to enter. Refining this idea should be approached with the same dedication as every other job-related task.
Learn what the top companies are doing in the industry and decide how you can do it better. If you think your business can deliver something other related businesses don’t (or deliver the same thing, but faster and cheaper), you’ve got a solid idea.
Don’t get so stalled in this step that you never get started or miss your window of opportunity. Execution and solid foundations can are more important than fine polishing. A business is constantly evolving and will never be perfect.
2. Business Plan
Your business plan is the foundation of your business and is a written description of how your business will progress from the launch to the finish product/service.
A good business plan guides you through each stage of starting and managing your business. You’ll use this plan as a blueprint for how to structure, operate, and grow your business.
Here’s what Entrepreneur suggests should be in your business plan:
- Title page. Start with name the name of your business, which is harder than it sounds. This article can help you avoid common mistakes when picking.
- Executive summary. This is a high-level summary of what the plan includes, often touching on the company description, the problem the business is solving, the solution and why now. (Here’s what you should include in the summary and how you can make it appeal to investors.)
- Business description. What kind of business do you want to start? What does your industry look like? What will it look like in the future?
- Market strategies. What is your target market, and how can you best sell to that market?
- Competitive analysis. What are the strengths and weakness of your competitors? How will you beat them?
- Design and development plan. What is your product or service and how will it develop? Then, create a budget for that product or service.
- Operations and management plan. How does the business function on a daily basis?
- Finance factors. Where is the money coming from? When? How? What sort of projections should you create and what should you take into consideration?
3. Choose a Business Structure
According to the SBA, “The business structure you choose influences everything from day-to-day operations, to taxes, to how much of your personal assets are at risk. You should choose a business structure that gives you the right balance of legal protections and benefits.”
Before you can register your new business, its important to decide what kind of entity it is. Your business structure legally affects everything from how you file your taxes to your personal liability if something goes wrong.
Common business structures include:
- Sole proprietorship
- Partnership
- Limited liability company (LLC)
- Corporation
- C corp
- S corp
- B corp
- Nonprofit
For more information and to compare each business structure click here.
Source: Adobe Spark
Author: Janie Smith
