10 Steps to Starting a Business

10 Steps to Starting a Business

Starting up a business is not an easy task you need to plan well to avoid downfalls, It is necessary to write a business plan indicating all the necessary steps you will have to take, some of which are your finances, legal requirements, insurance etc. The steps below might help you to get started:

Step 1: Preparing to start
You have a business idea? great. Gather as much as possible information about your business. Conduct a basic research to find out if your business idea has a potential

Step 2: Your business plan is essential for the success of your business and should outline your proposed methods to use to generate profits and grow in the next 5 years.

Step 3: Inform yourself properly about your chosen field, take courses and trainings to get fit for your start up. This will help you in preparing your business plan,securing loans and to grow. Analyse the market and find out the income class of your customers, check out what you can do better than your competitors.

Step 4: Choose a location for your business by considering the traffic congestion in the area, the scope of competition, the laws and taxes governing that particular state, the amount of capital available.Look for locations where suppliers can easily reach you. If you intend to expand in the near future, then search for facilities with the required capacity. If you plan to operate absolutely online, you will also need to plan for future expansion (e.g. more web space)

Step 5: Finance your Business
Having the best business idea is nothing if the required capital to start the business is not available. The availability of enough capital doesn't also guarantee success. It is therefore very important to anlayse how much capital one really needs before taken further steps. There are various means to finance a business:

  • Personal capital: the amount of capital you personally bring into the business is very important, sometimes it is used as an evaluating factor by banks to issue you loan. Capital could be in form of cash or personal assets which you bring into the business.
  • Foreign loans:this is usually the bank credit to finance a business startup, however there are other public funds available.
  • Cooperate funds can also be used to finance a business, however investors have rights to take part in the companies decisions

Step 6: Choose a legal form for your business
Bear in mind that the type of business structure you choose now have tax and legal implications on your business. So decide carefully. If possible seek advice from an expert to avoid uncertainties.

Step 7: Register the business
Register your business with your local office in order to get your tax identification number and operate your business peacefully without being subject to paying penalties. This will save you time and money and makes it easy for income and employment tax payments. Most of these registrations could be made online. Note also that each country or local office have its own tax laws

Step 8: There are some business forms that needs special permits and licenses, this will have to be obtained before commencing with your business.

Step 9: Market and Sell
Implement outstanding strategies in marketing your products and services. It must be different from that of your competitors. This will make your product or service attract your customers. Do research about your customers, find out their needs and worries. Find solutions to their problems by implementing this in your products or services.

Step 10: Do continuous market research
To keep on growing, maintain your customers and attract new customers you will need to do a continuous market research. Not only about your customers but also about your product or service. This will make your marketing effort effective and keep it modern.