Starting your own business is a big deal. Even though it’s easier now than ever to strike out on your own as a startup, it’s still a process that spans many different facets of planning, resource-gathering, and quick learning. Maybe you want to be your own boss. You’ve been dreaming of this business venture for years.
You’re just feeling stuck in the “research and development” phase and are unsure how to take those last steps. Listen up: it’s time to stop dreaming.
Starting a business doesn’t have to be an insurmountable task. You can grow over time. You can hire people later. Fine-tune as you go. What’s important is getting off the ground in the here and now.
When you’re finally ready to strike out on your own, these are the points you need to have in order first.
10 Startup Essentials for New Business Owners
#1 – Clear Business Idea and Vision
What do you want your business to be? What will you offer as goods or services? Consider what niche or need they address, what unique value you can add to the industry, and who your ideal customer is. Identify your target market and understand their needs and preferences.
Before you begin, you need that guiding vision and ultimate goal in mind.
#2 – Business Plan
Ideas are all well and good, but they need to function in real-world applications. That means you need a solid plan. Outline your business goals, strategies, and action plans. Research your different options for conducting business. Consider exit strategies, too!
This will include a detailed financial plan, including budgets, forecasts, and funding needs. Get those numbers as accurate as possible. You’ve got to know what it financially takes to run, scale, and profit from the business.
#3 – Market Research
Conduct thorough market research to understand your industry, competition, and potential customers. Use this information to refine your business strategy and positioning. Say you want to open a restaurant. You think, “Wow, I really love Italian food, so I’ll open an Italian restaurant.” You’d look and see how many Italian restaurants were already operating in the area! If you already have plenty of options filling that niche in the market, you should reconsider your cuisine.
The same is true of other types of businesses.
It’s a little trickier to judge when you’re working in a digital space, but you need to know what you offer that others don’t.
#4 – Legal Structure and Compliance
After extensive research, choose an appropriate business structure (such as a sole proprietorship, partnership, LLC, or corporation). Register your business, obtain necessary licenses, and ensure compliance with local, state, and federal regulations. Do your due diligence in ensuring your business name isn’t taken already by another entity in the same industry.
#5 – Financing
Determine the financial logistics of getting your business off the ground. Then, secure funding through savings, loans, investors, or grants. Separate personal and business finances from the very beginning. A company that offers goods will cost more upfront than service- or digital-oriented businesses.
#6 – Branding
How will you spread the word and stay in people’s minds? Marketing may be a pain, but it does matter. Create a strong brand identity, including a name, logo, and voice. I recommend working with a branding firm – they’re equipped to create “brand bibles” that your company can follow to ensure consistent messaging. I know it’s tempting to whip up an amateur logo in Canva. Professional designers, though, can take your branding from good enough to genuinely excellent!
#7 – Technology and Infrastructure
Invest in the right technology and tools to streamline operations and improve efficiency. This is particularly important if you start off on your own. For example, accounting, tax, and inventory software can cut out a lot of work and room for error. Consider options for project management.
Set up the necessary infrastructure, including office space, equipment, and software. Whether in your home office flying solo or renting out a commercial space, these things matter!
#8 – Customer Service
How do you build loyalty and encourage repeat business? Great customer service. Consider the tone you’ll set with customers and clients, how you’ll navigate misunderstandings or conflict, and what policies you’ll keep if someone is unsatisfied.
#9 – Networking and Support
A lot of success comes down to who you know. The right people can open up new opportunities and access to resources you wouldn’t otherwise have. Build a network of mentors, advisors, and peers who can offer guidance and support. Join industry associations and attend relevant events to stay informed and connected.
#10 – Legal and Financial Advisors
Finally, invest in relationships with legal and financial advisors to keep your business on solid ground. Regularly review and update your practices, procedures, performance, and risk exposure. Stay on top of compliance, insurance, and tax demands to avoid trouble!
What do YOU think you need before you start your business? Share your essentials in the comments.