4 Steps to Start a Small Business

Listen in! Pick up some expert advice to a reader's question that we selected from CyberSchmooz.

Starting a business is no small feat and entrepreneurship isn’t for the fainthearted. It takes a lot of planning and budgeting, and even when the business plan has been completed, you need to register your business and find ways to land your first few clients. Before you open your doors – whether they are physical or digital – you have a lot to map out and consider, from financing options to market research, to deciding on a company name and logo. Here are 4 steps to help you start a small business.

1. Google Your Idea

If you are ready to launch a business, you more than likely already have an idea in mind. However, before you move ahead too quickly, you need to research your idea and see whether it is already a popular product/service, whether it has a lot of competition, and how you can do it better.

A Unique Selling Point (USP) is essential if your business is going to stand out and entice the customers and clients of competitors. Without one, they are less likely to take the gamble and try out your product/services when they can stick to a reliable seller.

Take note of the top competitors and see what they offer and how they convey themselves. Perhaps they all have a corporate face and through research you are seeing room for a more personal brand to enter the market. If this is the case, you can consider a more consumer-friendly brand name and image that’ll attract consumers who do not enjoy buying from faceless corporations.

2. Write a Business Plan

A good business plan will keep you on track and help you manage the beginning stages of your business. It is a roadmap so that you know the direction you are heading and how you are going to get there. Furthermore, a detailed business plan can help you secure funding as lenders they will be more confident and see potential in them getting a return on their investment.

The format of a traditional business plan is as follows:

Executive Summary – Explain what your company is and how it will become successful, e.g., why do people need or value your products or services?
Company Description – A more detailed analysis of your company. What problems does your business solve and who are your targets, consumers?
Market Research – Who are you targeting and why? Competitor analysis should also be included in this section.
Company Structure – Explain how you plan on structuring your company and the people who will be in charge.
Product/Service Descriptions – Detail the products and/or services you will sell. You should also include whether you need to file for copyright on your intellectual property.
Projections – Where do you see your company in five years? What does your company hope to achieve financially in that time?

3. Secure Funding

Most entrepreneurs will require start-up capital for their business. It is essential that you understand the different financial options you have and how you can secure them. The most common financial options are:

Debt (e.g., business loans)
Equity (e.g., offering a % of the company in exchange for cash flow)

Financing is essential and incredibly important when it comes to starting a business, so be sure to research all options and take your time on deciding the best one for you and your company. If you are ever in doubt and unsure on which financing option is best for your business, there are many resources online and companies you can contact for a quote. Click on this source link for an in-depth guide on the many SMB financing options available for your start-up.

4. Register Your Business

You need to register your business before you can legally operate. There are several documents you will need to fill out, but the best way to decide on the type of business you have and the rules for your business type, is to head to the government website. They can offer the right support so that you know exactly how to register your business.

Many of us dream of starting our own business, yet only a few of us go ahead with our ideas. While the road to a successful business is long and risky, the payoff can be huge.

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