Starting your own enterprise is one of the best ways of improving your income. A well-established enterprise has the ability to compete favorably with other enterprises in the same market. To start your own successful business, there are 8 important steps you need to follow. Starting with number 1 below!
1. Create a Business Idea
This first step will determine the success or failure of your enterprise. You need to come up with a viable idea that will stand the test of time. A simple way to form a good idea is to conduct a market research in the area where you want to establish the enterprise. Identify a commodity or service that is on high demand yet scarcely supplied. It is possible that you may not be able to create a completely new idea. If you want to sell what already exists in the market, check how other players in the same industry deliver their services. You need to think on how to deliver the same services in a better way to win customers. Also, assess the strengths and weaknesses of your idea to determine its feasibility.
2. Draw a Business Plan
Even if you are setting up the enterprise alone, having the plan helps you to address important issues that determine your success in the industry. The plan will help you to:
• Know your potential clients
• Understand the purpose of your enterprise
• Know your competitors
• Set prices for your products or services
• Set your enterprise in the most appropriate location
• Project the financial position of your enterprise
• Know the cost of setting up the enterprise.
3. Select a Suitable Tax Model
An enterprise model is important because it determines the amount of tax you pay. You need to learn the advantages and disadvantages of each model before choosing appropriately. Common models include limited liability companies, partnerships, and sole-proprietorships.
4. Get Money & Obtain Funds
The first source of funds for your enterprise is your own savings. If your savings are not enough for your startup budget, you can look for funds from banks, investors, well-wishers, friends, and relatives. Look for banks that fund startups in your locality. Some investors may demand a stake in the business. Be sure to understand the terms of the agreement clearly.
5. Build Your Infrastructure and Team
Your new enterprise needs equipment and structures to run. If you planned to rent or hire the structures and equipment, do as planned. Additionally, running your enterprise alone is not possible in most cases. You will need a competent team. The size of the team may depend on various factors, including the model and size of the enterprise. For proper operation, divide your team into various departments. Important departments for startups may include marketing, operations, finance, and procurement.
6. Complete Necessary Paperwork And Obtain Licenses
You will need to register your startup and obtain a license to ensure its existence is legal. Registration and licensing requirements may vary by state. Be sure to know the requirements in your state.
7. Get Insurance For Your Business
Obtaining a suitable insurance for your startup ensures the enterprise is protected from possible losses in future. You need to compare various insurance companies to ensure you select one that suits your enterprise.
8. Build Your Customer Base
The size of your client base will determine your sales. To build a large and stable client base, you need to properly market your enterprise. You can achieve this through the following ways:
• Advertisement on social media platforms
• Telling your friends, relatives, neighbors, and other potential customers about your newly established enterprise
• Advertisement in your local media including, T.Vs and newspapers
• Sending out your marketing team to move around and notify people about your new enterprise
• Hiring a marketing firm to market the enterprise