Typically, a lot of careful planning and assessment goes into starting a business. Individuals who intend to start a venture must make it a point to think about all the aspects pertaining to starting a business sustainable. For instance, they should pay attention to planning, implementing and managing stages to construct a business model with plans for long-term growth.
5 Steps To Start A Business
By following these 5 necessary steps, one can lay the foundation of a business –
Step 1 – Develop A Business Plan
In order to start a business that is profitable and is based on a sustainable business model, individuals need to develop a comprehensible yet feasible plan of action. Such a plan will factor in all significant aspects of a business including production, product, price, promotion and market strategies. It will also include the allocation of resources and outlining managerial roles.
Step 2 – Choose A Business Structure
Individuals should next proceed to choose a legal structure for their business. Based on the chosen legal structure, factors like the following are decided –
- Registration requirements
- Tax amount and rebates
- Personal liability
Typically, a business’s legal structure can be – sole proprietorship, partnership, corporation or limited liability company.
Step 3 – Complete The Registration Formalities
Once the structure is decided, individuals should proceed to pick a suitable name for the company. The name should be impactful enough to capture the essence of the brand or its vision. Subsequently, to protect the brand, one must get the name of the business registered with the government and complete all the associated requirements. Nevertheless, before moving onto the registration phase, one must find out these few things –
- Whether the company name is available in the state.
- If the outcome of the trademark search is in favour of the proposed company or not.
- Once the final name is decided, a trademark should be filed for it.
Notably, when a new corporation or Limited Liability Company is formed, its name is automatically registered with the state. It means such companies do not need to initiate the process separately.
Step 4 – Conduct Market Research
Before starting a business venture, it is imperative to identify the key demographics, targets and popular trends of the industry. With the help of thorough market research, one can easily figure out these and much more.
The most effective tools of successful research include – surveys, collecting product and public data, researching SEO trends and engaging in focused group-based discussions among others. With the accumulated data, individuals can add a unique angle to their products or services, which will help the business to thrive.
Step 5 – Assess Finances
Capital is one of the essential factors for starting a business. It not only helps to lay the foundation of a functional business but also helps to execute plans. Other than that, having a smooth cash flow right from the beginning enables businesses to maintain healthy working capital. For effective financial management, individuals should be assessing finances regarding how much money they would need to start a business. Subsequently, they should also look for financial institutions that will help them to meet their cash flow requirement easily.
Based on the estimate and one’s repayment capability, one can look for suitable financial avenues. For instance, creditworthy business owners with strong repayment capability may avail a business loan, whereas, others may raise funds via invoice discounting services. They may look for leading integrated cash-flow solution providers who extend substantial funds at attractive terms.
Besides these, individuals should pick a suitable location to carry out their business, employ skilled talent, and install the latest equipment and technology to start a sustainable venture. They must also apply for a license and permit and find out about the taxes they would attract.