The First 10 Steps To Starting A Business
Starting your own business is a huge undertaking, but if you follow these 10 steps you'll have a much better chance at success.
That's why we put together this guide to help answer your questions and give you the advice that our experts would give their friends who are considering quitting their day job so they can pursue the entrepreneurial dream. This first post - which provides 10 important steps to getting started - is just a small part of what this blog will offer you as we go through each phase of starting a business.
If you're thinking about starting your own business, this is a great place to begin. But if you're not sure how to get started, you might want to check out the first installment of our blog series - A Guide To Getting Started With Starting A Business. That post (and the series) will help you figure out if starting a business is really right for you and if so, which type of business is best suited to your ambitions, skills and budget.
So without further ado, here are our 10 steps:
Step 1: Choose a Business Type That Suits Your Skills And Ambitions
Self-employment isn't for everyone. Look at your work history and determine if the business you plan to start is the right type of business for you. Start with a low-risk, non-profit side hustle so that you can become accustomed to understanding how your customers think and what they expect or desire. You'll learn a lot of this information by just getting out there and talking with potential customers, but then there's no better way than experience to help you figure out if your business idea can actually be done profitably.
If you want to start a manufacturing company, create a prototype of your product before moving forward with a full-scale production run. Take your company public once you've achieved profitability, save a few quarters and maybe even take out a loan if you feel confident that the investment will be worth it.
But if you have a great idea for an online business, don't start by building your own website or learning how to use WordPress. Why? Because there are plenty of great WordPress themes available that make development way easier while still offering the same level of customization as more proprietary platforms. This not only makes it easier to get started but also saves you money down the road because you'll use less time and resources on your site and spend fewer days working 24/7 to keep your site up-and-running.
Small businesses with less than 250 employees make up over half of the United States' private sector workforce. According to the Small Business Administration, 90% of American companies with fewer than 20 employees are family-owned and 80% of all new jobs come from small businesses.
You may have a product or service that people want to buy, but if you don't have enough capital to start your business you might find yourself in a tough situation. To raise the money needed to launch your business, try crowdfunding platforms like Indegogo or Kickstarter .
A business plan will help you share your idea with investors and lenders before you get started. It clarifies the reasons behind your company and provides details about how it will operate, who will run it, how much money you expect to raise and how you'll use that money to grow.
Step 3: Register Your Business
The first step in starting a small business is registering with the government. You'll need a Federal Employer Identification Number or EIN (the equivalent of a Social Security number for businesses), which can be obtained through the IRS website. This can only be done online so be sure to visit their site before starting your business.
Your business must also register with the state where it will operate, usually through the Secretary of State's office. You'll need a state license called a "BK" or "BOE" (business operating entity) certificate. This document is typically given to companies that are already operating in your state and doesn't require any additional registration with the government; it just needs to be renewed annually.
Once you have an EIN, a valid registration for your business in the state you'll operate it in and your BOE registration, you can officially start your small business.
Step 4: Start Filming Yourself
Now that you're officially on your way to starting a business, it's time to make a case for yourself. You need a video that introduces your company and its founders and describes the unique points of value in your product or service. The video should be no more than three minutes long - any longer and people will lose interest. Based on our own experience, we also recommend recording at least three different versions of the video so that you can test and then optimize it in an effort to increase engagement.
A short introduction combined with an attractive logo is important, but it isn't enough by itself.
Conclusion
We've given you a detailed rundown of the steps you need to take before starting your new business and we've even included some helpful resources to help you get started.
These 10 steps are just the beginning of what we're going to offer you over the coming weeks as we review and outline each phase of starting a business.