How to Start your Own Business? Step by Step Guide
To start your own business, you must need courage, determination and learning. Even so, every small business or startup is not a story of success.
But this is not how it always happens. Successful business often has right vision, planning, wealth and flexibility. Here we bring you a handy guide to start your own business step by step.
Start a business in 10 steps
Most businesses should go through the same chain of steps regardless of the industry.
Do extensive research
Create a business plan
Plan your finances
Select your business structure
Register your business name
Choose your domain name
Use the technology to automate the processes
Choose your business location
Keep the right employees at work
Boost your small business
Complete all these steps and you will be on solid ground to launch a successful startup.
Step 1: Do extensive research
As long as you prepare your full time job for your business trip, it is most likely that you already have a business idea. But does that idea give the opportunity to succeed?
Ask yourself: Is your business solving a problem, meeting a need or offering some markets?
You can identify this requirement through market research, competitive analysis and even trial and error. Before starting your own business, you should be able to identify your target customers that your products or services are similar to your competition or unique and how your business will fit in the market. There is no point in creating a product or service that already has sufficient providers.
Step 2: Create a business plan
To make the idea of your business a reality, you should come up with a business plan. This is a template that will guide your business from the startup phase through installation and ultimately business growth.
These days, some people think that smart presentations can displace traditional business plans. But the reality is that, every entrepreneur and startup company requires a business plan. The length of business plan differs from one page to many pages depending on the nature of the business.
Those who seek financial support from an investor or financial institution usually have a more detailed business plan.
If you are not seeking financial support, then a simple one-page business plan can give you clarity about what you expect to achieve and how you can go about it.
Step 3: Plan your initial investment and expenditure
If you are starting small, always do not need a lot of money to start your own business. But this includes some initial investment and expenditure.
You can fund your business in a variety of ways:
Ordinary bootstrapping, in other words, to keep expenses minimal
Often, a combination of options works best for landing on the ground.
Using a spreadsheet to manage your finances is the best way to keep your financial records together. These include sales forecasts, expenditure budgets, cash flow details, and income estimates.
Step 4: Choose your legal business structure
When starting your own business, a very important decision is to choose the right legal business structure. Whether your business is sole proprietorship, a partnership, a limited liability company or corporation will determine other things such as:
The name of your business
How do you enter your taxes
The amount of paperwork your business should have
The ability of the firm to raise money
You can later change your business structure based on business growth and market needs.
Step 5: Register Your Business Name
Your business name plays an important role in almost every aspect. Therefore, before deciding on your final choice, you need to know your options well.
Check with the Ministry of Corporate Affairs whether your choice of company name is available.
The Company Act of 1956 allows the government to regulate all aspects of a business, from establishment to liquidation.
In order to register your company or a new business in India, you have to fulfill some official procedures for that.
Register online for DSC (Digital Signature Certificate). This is digital equivalent of paper certificates that prove your identity.
Apply online with the Ministry of Corporate Affairs for DIN (Director Identification Number) This unique number identifies your company’s director.
After obtaining your DIN and DSC, prepare the company’s incorporation form to file online with the company registrar (RoC).
Please file online eForm 1A to apply for company name. ROC will approve the name of the company on the basis of availability and suitability.
Once the RoC covers your certification, you can easily start your business in India.
Step 6: Select your domain name
Since every small business requires a website, you will need a domain name that is unique to your company. It becomes your business address on the internet.
Register your domain name immediately after finalizing your business name.
This is an important step to start your business, as a domain name that matches the name of your business, adding credibility to your small business. It also creates a strong, professional image in cyberspace.
Step 7: Use the technology to automate the processes
A company works most effectively when technically equipped.
An important example for a small business is an accounting system. It not only helps in creating and managing your budget, but also sets quotes, files your taxes etc.
Contact management software is another example. It puts all the data related to each customer in one place, where employees can use it to solve customer complaints.
Technologies such as CRM, supply chain and artificial intelligence (AI) can also make some processes work efficient.
Step 8: Choose your business location
There should be no consideration after establishing your business location. In fact, you should start scouting the places in the early stages, because your budget depends on the location of the business you buy and the office’s infrastructure.
Make sure your business location is understandable for the type of business you are doing.
You can choose a home office, a shared or private office space, or buy a commercial space or lease.
In any job, from desks and chairs to computer hardware, as well as setting up your internet connection, you should make a list of all the essentials in your new office.
Step 9: Keep the right employees at work
Hiring staff means that you are now ready to enter the business. You should outline the posts that you want to fill and make a list of people you know who can fill them.
It is important to have clarity on the responsibilities of new posts, potential candidates and their job while selecting the right candidates.
Small business owners sometimes do not hire employees. Instead they outsource to independent contractors. This can often be more cost effective, especially in the early days.
Step 10: Advertise Your Small Business
While physical brochures, prescriptions and print ads are desirable to advertise your products / services in a particular geography, they start promoting your business online for wider reach.
Your options are many and include:
A business website
Social Media (Twitter, LinkedIn, Facebook etc.)
Do not let the crowd of choices dominate you; Choose one or two to start. Then refine and expand your promotional efforts as an experience.
With above steps, starting your own business could be quite easy for starters. Try and comment if this article help you.