Starting a business can be an extremely exciting and rewarding experience, but knowing how to get started can be tricky. Breaking down the process into individual steps can be helpful, and this is a method that’s been used by many successful entrepreneurs to get their own enterprises off the ground.
Getting Clear on the Business Idea
To begin, it’s important for a prospective entrepreneur to be really clear on their business idea. As part of this stage the ‘why’ behind the business should be considered: whether it’s being started for personal reasons or market reasons. Clarifying target customers and deciding upon a brand name should also be undertaken at this point.
Writing a Business Plan
Creating a business plan is one of the most important parts of preparing to launch a business. This document should include an executive summary, company description, market analysis, the business’s organisation and structure, its mission and goals, and a background summary. The business plan should also incorporate a marketing plan and financial plan, as well as an exit strategy. The latter outlines how the business will be sold, or its ownership transferred, if the entrepreneur decides to move onto a new project or retire.
Determining Funding
How a new business will be funded is one of the most crucial parts of starting a new enterprise. Whether it’s from bootstrapping or raising money from investors, being clear on where funds will come from and the pros and cons of each option should be carefully considered. For example, bootstrapping allows the entrepreneur to maintain complete control over their business, but this route means it could take longer for the business to grow – plus there’s the risk of running out of funds.
Choosing a Business Structure
The business structure chosen will affect many things, including issues around personal liability and how tax returns must be filed. The structures to choose from are sole proprietorship, partnership, corporation and limited liability company. It will be up to the entrepreneur to select the option that best meets the current needs of their business and its future goals.
Hire the Right Employees
Successful entrepreneurs like Rob Tolley, former London broker, know that the team behind a business is instrumental to its success – or otherwise. It’s therefore important for entrepreneurs to hire those who share their business vision and values. Creating a positive work environment, offering opportunities for growth and development, and providing training are all effective ways to attract and retain the right people.
Take a look at the embedded PDF for more tips on starting a new business.