Business | Tuesday, December 3, 2019
1. Research the Market.
Before you can start a company, you need to know who your clients will be. So, your market research will involve looking into typical consumer behavior, pain points, and economic trends in your chosen industry and understanding them so you can see where your potential startup might fit in.
Your research should be able to show an understanding of how Demand, Market size, Location, Market saturation, and Pricing will work for you. You will learn it best from talking to the potential clients or consumers themselves.
2. Draw a Business Plan.
Your business plan is a guide for your startup; it keeps you on track and guides you through it all. This document, simple or in-depth as you'd like it, must include the following elements:
* Executive summary: A brief background of your company – what it is, what it does and why.
* Mission statement: A short statement describing your business’ purpose.
* Market analysis: An extensive analysis derived from your market research.
* Company description: A section addressing what problem your company solves and why it is unique.
* Organization and management: A list of the owners and executives, as well as key staff members.
* Marketing and sales: An overview of your strategy for targeting consumers based on customer data.
* Service or product line: Descriptions of your products and services.
*Funding request: How much funding you need and why, and how you plan to pay back any borrowed money.
3. Register your Business
You don't want to face legal issues simply because you failed to do your homework. Conduct a trademark search to ensure your potential company or product name isn't already registered as someone else's intellectual property.
Once you choose a name that represents your business (and isn't in use by someone else), you can protect it by registering it. There are a few ways to do this:
Registering a trademark prevents others in similar industries from using the same name. This can protect your name and goods or services on a federal level.
* Choose a Legal Structure
When you officially register your business, you’ll also need to choose a legal structure. There are various types to consider, and the option you choose will impact how you operate, how you are taxed, and even how business decisions are made.
The most common structures include:
Sole proprietorship: One owner runs the business without a strict structure. Owners are held personally liable for the business and their assets may be at risk if the business goes into debt.
Partnership: Two or more owners operate the business together. Each partner is personally liable for business debts.
Limited Liability Company: LLCs are also taxed as a "pass-through" entity. They are managed by their members, who each own a percentage of the business.
Also, register your company with the appropriate local authorities. Small businesses in certain industries need licenses and/or permits from federal and/or state agencies. Some operations that might require federal licenses or permits include selling alcoholic beverages, or broadcasting information on radio, TV, etc. while state licenses or permits exist for businesses doing construction, dry cleaning, food service, and similar activities.
4. Funding your business
Many business owners apply for a loan to fund their startup. Before doing so, you’ll want to decide which loan, if any, is right for you and your business.
You’ll want to have a separate bank account for your business to ensure compliance and protection. While looking for the right account for your business, choose one with low fees, good benefits, and a considerable minimum account balance. If you decide to hire, make sure you understand your obligations as an employer. If you just want to hire freelancers or independent contractors, keep excellent financial records.
Gain attention for your soon-to-launch company by advertising your goods and services through word of mouth, formal marketing campaigns or both. Then, launch your company.
Your work doesn't end on launch day. You need to continue to market your business, assess finances, and adjust your strategy along the way. Stay connected to an entrepreneurial community and learn from others to help you refine your approach frequently.