When deciding to start a business or become an entrepreneur, one must have a strong foundation and take various steps so that the business can survive and grow.
Because, not a few businesses stop in the middle of the road for various reasons. Therefore, here are the 10 steps needed to start a business in order to be successful, as quoted from The Balance:
1. Do some research.
Most likely a person who will start a business already identifies what business to run. However, before the idea is applied in a business, do a little research on how big the business will be. Some of these things are important to answer when doing research.
Is the product or service that will be offered is needed by the community? Who needs it? What about the competition, are there other companies offering similar products or services? How to make a business run in accordance with market demand?
2. Make a plan
Before applying the business idea into reality, do a careful business planning that will guide you to run the business from the initial stage to the formation until the development plan.
If you want to seek funding support from investors or financial institutions, the business plan becomes a must. Because that’s where they can validate your idea while looking at the prospects of the business you’re running.
3. Plan your finances
To start a small business does not take a lot of money. However, of course it still takes an initial investment that will be used to cover expenses before making a profit.
Therefore, it is important to make financial planning including estimating what needs and expenses over the next year, ranging from rental costs, marketing, production, employee salaries, stock goods, and so on.
After having a rough calculation, then you can think of a number of ways to fund your small business, including through financing, small business loans or People’s Business Credit, small business grants, angel investors, crowdfunding, including by bootstrap, i.e. using as little capital as possible to start a business.
By knowing the calculation, businesses can make business plans including about the capital needed to start a business.
4. Determine the business structure
Your small business can be a sole proprietorship, partnership, limited liability company (LLC), or corporation. The business entity you choose will affect many factors ranging from your business name, to your obligations, to how you file taxes.
5. Choose and register your business brand
The name of the selected business or brand has an important role in every aspect of the business. Make sure you think about all the potential implications when choosing a business or brand name. After that, check the trademark, and you can also register the business name.
You can also immediately create a website so that the business is also known online. Buy a domain name immediately for the business you want to develop.
6. Get a license and business license
Documents are part of the process when it comes to starting a business. There are several licenses and small business licenses that you can choose that are tailored to the current business conditions.
7. Choose a financial accounting system
Small businesses run most effectively when owning a system. One of the most important systems for small businesses is an accounting system for creating and managing budgets, setting rates and prices, doing business with others, and filing taxes. You can set up your own accounting system or hire an accountant.
8. Set up a business location
Setting up a business premises is essential to operating a business that is run. Whether you have a head office, shared or private office space, or a retail location. Choose a business location that suits the business being run. Also think about whether it is necessary to buy or rent a place of business.
9. Get your team ready
If you are going to hire employees, now is the time to start the recruitment process. For new small business owners, it is most important to hire employees especially in the administration department who will record various things in your business, both in terms of stock goods, finance, marketing, and others.
10. Promote your small business
Once the business is running and you have to start attracting clients and customers, then it’s time to make a marketing plan. Then, explore as many small business marketing ideas as possible so you can decide how to promote your most effective business.
Remember that success doesn’t happen overnight. Do the business plan consistently to increase your chances of success.