Hundreds of individuals decide to set up their own businesses each day. Starting your own business can be frightening, but very rewarding at the same time.
Here are the necessary steps to consider when starting up your new business.1 Come up with ideas
Coming up with a business idea can be quite tricky. Brainstorming is really important if you want to choose the right business idea.
Brainstorm ideas that improve on existing products and services. It’s also a good idea to think about issues that affect people on a daily basis as this can lead to great business ideas.
2 Do market research
It is important to assess whether the market is big enough for what you plan to offer and if your target market is not too limited.
Market research can be conducted in many ways. You could have informal conversations with family and friends. Chat to a few contacts as well as hand out questionnaires to the public about your potential product or service.
3 Write up a good Business Plan
This goes without saying, as you would always need a business plan to secure a business loan, but it’s important to note that this step involves strategic planning and requires your full involvement.
Identify your funding, business risks, as well as your aims and objectives. You should also evaluate your competition and understand your business’s cash flow.
4 Hire a good accountant
There are so many different areas you need to cover when wanting to start your own business, and that’s why it is best that you look to a reputable accounting firm to help you with everything.
Your accountant should also be able to help determine the best form of ownership for your business, and help you establish bookkeeping and other forms of record-keeping procedures. This will allow you stay on track and up-to-date on all your paper work.
5 Decide on a good company name
This step is very important and you should put in a lot of effort when doing this.
Think about your:
- Target market
- Image that you want to project to your clients
Check whether the name you want to use is available. You want to stand out from the rest of your competitors.
6 Partners and suppliers
You are likely to work with a number of different people in order to develop your business, such as partners, suppliers and distributors- not matter what business structure you choose.
It might be in your interest to find a co-founder with the necessary skills and knowledge to help you where you need help.
When looking for suppliers, you can ask other businesses in your field or look online. Make a list of the suppliers you think are worth using and arrange meetings to discuss prices etc.
7 Set up your business and funding
You must have to choose which legal structure is going to be best for your business, before you register your business and begin trading.
Draw up a financial plan, as this will help you find the best solution for your business. Make a list of all the costs you will be responsible for as this will help you to establish how much start-up funding you will need and then how much you predict your monthly expenses to be.
Figure out how much money you need to borrow, as you might not have enough to execute your business idea.
By following the above steps, you will have a better understanding of how to go about setting up your own company. There are many steps to consider, but at least you are now aware of the very important factors to take into account as a new start-up.
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- Keeping the ‘start up mentality’ (thestartupmag.com)
- Interview with Rahul Powar, Founder & CEO of Apsmart and the creator Shazam (thestartupmag.com)
- How do new businesses look after their data (thestartupmag.com)