8 Steps you need to take before starting a new business

There’s a lot that goes into starting a new business. So much so, in fact, that the prospect can be daunting. Therefore, to assuage your fears and help you get your company off on the right foot, we’ve compiled a series of steps to take before starting your new business.

 

8 Steps to Take Before Starting a New Business

Step 1: Perform Market Research

After you’ve come up with your new business idea, you need to figure out whether there’s an opportunity to transform your idea into a successful company. To do this, you need to perform market research. Market research involves gathering information to determine whether a customer base exists for your business. For instance, your research should answer questions such as:

● Is your product or service in demand?

● How large is your market size?

● Where are your potential customers located?

● How saturated is the market?

● What are people currently paying for products or services like those you want to offer?

Step 2: Create a Business Plan

Your business plan functions as a roadmap for how you want to structure, run, and grow your new business. Therefore, it should act as a guide for every stage of starting and managing your company.

In general, a business plan will consist of a summary of what you envision your business doing, including your mission statement, details about the product or service you want to offer, and your vision for employees, leadership, and location. You should then expand each part of your summary into its own section. Additionally, you will want to include information from your market research and a cost analysis detailing how much money you’ll need to get started.

Step 3: Find Funding

After you’ve created your business plan, you’ll know how much money you need to get your company started. Therefore, the next step is to figure out where this money is going to come from. If you don’t have the finances to fund your business yourself, you’ll need to solicit money from other sources. This can include venture capital from investors, a small business loan from a bank, or crowdfunding.

Step 4: Choose a Name for Your Company

Naming your business is no easy task. First, you’ll need a name that reflects your brand and captures the spirit of the products or services that you’re offering. Furthermore, you need a name that no one else is using online or on social media. Therefore, you should develop a list of possible names and then run them through a brand name checker. This tool will show you whether the name you’ve chosen is being used as a domain or social media handle. In this way, you can be sure to pick something that no one else is using. Consequently, no one will confuse your brand with someone else’s, and potential customers will find it easier to locate you online.

Step 5: Register your Business

After you’ve found the best name for your brand, you’ll need to make it legal. Business registration regulations vary from state to state, so make sure you understand what your state requires.

Step 6: Select a Location for Your Business

Whether you’re planning a brick-and-mortar store or office, or you plan on operating your business solely online, you need to decide where you’re going to operate your business. Your choice of company location could affect your taxes, legal requirements, and revenue. Therefore, it’s vital that you consider carefully where your business will be located.

Step 7: Decide on a Business Structure

When it comes to the structure of your business, you have several options. The most common business structures are sole proprietorship, partnership, limited liability company, and corporation. The structure you choose will profoundly influence everything from your day-to-day operations to your taxes to which of your personal assets are at risk. Therefore, you need to research each structure before making your selection.

Step 8: Get a Business Bank Account

A small business bank account is necessary to keep your personal and company funds separate. Additionally, banking with a business account keeps you legally compliant and protected.