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How to start your business of choice and make it more profitable

most popular reasons for stating a business include; having a unique business idea, designing a career that has the flexibility to grow with you, working towards financial independence, and investing in yourself- it’s no wonder that small businesses are everywhere. but not every small business is positioned for success. in fact only two-thirds of businesses with employees survive at least two years and about half survive five years. Steps that are required to start a business successfully include;

Do your research- after identifying a business idea it is time to balance it with a little reality. Does your idea have the potential to succeed? you will need to run your business idea through a validation process before you go any further. in order for a small business to be successful, it must solve a problem , fulfill a need or offer something the market wants. There are a number of ways you can identify this need, including research, focus groups, and even trial and error. as you explore the market , some of the questions you should answer include: Is there a need for your anticipated products/services?

Who needs it? Are there other companies offering similar products/services now?

What is the competition like? How will your business fit into the market?

Make a plan- you need plan in order to make your business idea a reality. A business plan is a blueprint that will guide your business from the start- up phase through establishment growth, and it is a must – have for all new businesses. The good news is that there are different types of business plans for different types of businesses. If you intend to seek financial support from an investor or financial institution, a traditional business plan is a must. This type of a business plan is generally too long and thorough and has a common set of sections that investors and banks look for when they are validating your idea. If you don’t anticipate seeking financial support, a simple one page business plan can give you clarity about what you hope to achieve and how you plan to do it.

Plan your finances –starting a small business doesn’t have to require a lot of money, but it will involve some initial investment as well as the ability to cover ongoing expenses before you are turning a profit. Put together a spread sheet that estimates the one –time start up costs for your business (licenses and permits, equipments, legal fees, insurance, branding etc). As well as what you anticipate you will need to keep the business running for at least 12 months (rent, utilities , marketing and advertising , production, supplies, travel expenses, employee salaries etc. those numbers combined is the initial investment you will need.

Choose a business structure- your small business can be a sole proprietorship, a partnership, a limited liability company or a corporation. The business entity you chose will impact many factors from your business name, to your liability, to how you file your taxes. You may choose an initial business structure and then re evaluate and change your structure as your business grows and needs change.

Depending on the complexity of your business, it may be worth investing in a consultation from an attorney or CPA to ensure you are making the right structure choice for your business.

Pick and register your business name- your business name plays a role in almost every aspect of your business, so you want it to be a good one. Make sure you think through all of the potential implications as you explore your options and choose your business name. Once you have chosen a name for your business you will need to check if it’s trademarked or currently in use. Then you will need to register it. a sole proprietor must register their business name with either the state or county government.

Get licenses and permits-paper work is part of the process when you start your own business. There are a variety of small business licenses and permits that may apply to your situation, depending on the type of business you are starting and where you are locating. You will need to research what licenses and permits apply to your business during the start –up process.

Choose your accounting system- small business run most effectively when there are system in place. One of the most important systems for a small business is an accounting system. Your accounting system is necessary in order to create and manage your budget, set your rates and prices, conducts business with others and files your taxes.

Set up your business location-setting up your place of business is important for the operation of your business, whether you will have a home office, a shared private office place or a retail location. You will need to think about your location, equipment works for the type of business you will be doing.

Get your team ready. - if you will be hiring employees now is the time to start the process . Make sure you take the time to outline the position you need to fill and the job responsibility that are part of each position.

Promote your small business- once your business is up and running you need to start attracting clients and customers. once you have completed these business start up activities you will have all the most important bases covered. keep in mind that success doesn’t happen overnight.

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Content created and supplied by: Godfreywilliams__ (via Opera News )


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