The new year is well underway and it’s time to make good on your New Year’s resolutions. That means starting your new business that you’ve been talking about for years. But where exactly do you begin? Follow the guide below to learn how you can launch your new small business.
Research Your Industry
You probably already have an idea for your business; now it’s time to be realistic. Do some research about your chosen industry and do some critical thinking about your idea. Is there a need for your business? Does it have the potential to be a success? In order for your new business to remain open and succeed, it must solve a problem or satisfy a need. Some ways you can determine if your business accomplishes this is by doing research, running a focus group, or using trial and error.
Create a Business Plan
Once you determine whether or not your business idea is a good one, you can start turning your dream into a reality. The first step is writing a business plan. This is the blueprint that your company will follow from its days as a start-up to formation and growth. It is also necessary if you plan on obtaining financial support from a financial institution or investor. In this case, you will need a traditional business plan, which is long and very detailed. If you do not need to obtain financial support, you can create a simpler business plan to keep yourself on track.
Though you may not need a lot of money to start up your company, you will still need some cash to get started and cover business expenses until your business can make a profit. Determine your one-time startup costs and expenses to stay open for a year. One-time costs include equipment, small business insurance, licenses, and more. Expenses for a year of operation are rent, utilities, and salaries. There are a few different methods you can use to obtain financing like:
- Tapping your own savings
- Small business loans
Fill Out the Paperwork
The next step is filling out a lot of paperwork. You need to choose your business structure (sole proprietorship, partnership, LLC, or corporation). Then, you should choose, trademark, and register your business name. You should also purchase the domain name for your business. Lastly, you should obtain any licenses, permits, and small business insurance you need to begin operations.