Every year, hundreds of thousands of people across the country take a leap of faith and start their own business. This path requires a lot of hard work, and many end up failing. But for those who survive, the rewards of entrepreneurship are well worth the obstacles they face on the road to success.
Think you're ready to start your first business? Here's a step-by-step overview of what you need to do to make it happen.
Brainstorm ideas
Every new business starts with an idea. Maybe there's something you're really knowledgeable and passionate about, or perhaps you think you've found a way to fill a gap in the marketplace. Wherever your interests lie, it's almost guaranteed that there's a way to turn it into a business.
Build a business plan
A business plan helps you figure out where your company is going, how it will overcome any potential difficulties, and what you need to sustain it.What your business is about and how you will accomplish your goals.
Your extended goals, and how you will fill your market's needs.
Your research on your target market,Organization and management of your company.
Your service or product line, including copyright information and R & D activities.Strategies for market penetration and growth.
Estimated costs and funding request (if you need financial assistance).
Assess your finances
Starting any business has a price, so you need to determine how you're going to cover those costs. Do you have the means to fund your startup, or will you need to borrow money? If you are planning to make your new business your full-time job, it's wise to wait until you have at least some money put away for startup costs and to sustain yourself in the beginning before you start making a profit.
Determine your legal business structure
Before you can register your company, you need 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.If you own the business entirely by yourself and plan to be responsible for all debts and obligations, you can register for a sole proprietorship. A partnership, as its name implies, means that two or more people are held liable as business owners.
Register with the government and IRS
To become an officially recognized business entity, you must register with the government. If you are registering as a corporation, you'll need an articles of incorporation document, which includes your name, business purpose, corporate structure, stock details and other information about your company. Otherwise, you will just need to register your business name, which can be your legal name or a fictitious "Doing Business As" name (if you are the sole proprietor) or the name you've come up with for your company. You may also want to take steps to trademark your business name for extra legal protection.
Build your team
Unless you're planning to be the sole proprietor and employee of your business, you're going to need to hire a great team to get your company off the ground. Joe Zawadzki, CEO and founder of MediaMath, said entrepreneurs need to focus on the "people" element of their business with the same attention they give their product.
Brand yourself and advertise
A great startup idea won't do you any good if people don't know about it. While there's still a lot of value in word-of-mouth advertising, you're going to need to do more than just tell your social circles that you're starting a business. Before you start selling your product or service, you need to build up your brand and get a following of people ready to jump when you open your literal or figurative doors for business.A company website and social media profiles are practically essential for any small business in today's world. Create a logo that can help people easily identify your brand and be consistent in using it across all of your platforms. Use social media to spread the word about your new company.
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