How to start a startup

We know that a journey of million miles starts with a single step and there is nothing more challenging than that first step.

Sometime we think some people don’t become entrepreneurs just because they don’t know where to begin.

And the important thing is that all successful entrepreneurs started out the same way, they just manage to take it and become successful they are today.

It all started with a passion.

You should know your product was not better than that was out there. There are approx 28 million small scale businesses in the US. which are making up a massive 99.7% of all united states businesses.

So when you think about the well accepted reasons to initiate a business having a distinctive business idea, working in the direction of financial independence and contribute money to make money.

So there’s no surprise that small businesses are in all places.

Basically you don’t need any professional training to become an entrepreneur, all you just need a well planned idea, the thirst to learn and the capability to take action.

Here are some startup steps that will make sure that your business is ready for success.

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1.Research

There are some things you have to research before starting a business. We know that starting a business is like buying a new laptop. First of all we need to get some details about the product.

Like this we have to analyse if there’s demand for your service or product and many other things.

1.Choose your type of business

There are various types of business entities and all you have to choose the one. Like you want to be a home tutor provider. For this you have to analyze your area. Does there really requirement of a home tutor? Is there any growth for this business?

2.Competition

It’s essential to know who is your competition is and what you can learn there business strategies. There are several ways to investigate your competition.

3.Research on target audience

There are miscellaneous ways to reach your audience. It’s all depend on our demographic that some want to be reached via social sites and may need face to face interaction.

Once you understand your target audience, you can make a well planned strategy for your business.

4. Name for your business

Your business name should be unique and well fitted for business. First of all make sure no one have the same name.

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2.Plan

Basically a business plan is a blueprint that will lead you from the startup phase via establishment ultimately business growth. If you need support from a financial institution, a business plan is a must.

Business plan is basically a plan of what are your goals for the business and how you plan to accomplish them. Your plan should be a written document and use as a tool in managing the business. A plan contains various things:

  1. A statement of your business.
  2. A detailed description of your company.
  3. Goals
  4. Structure of your business
  5. Market analysis
  6. Resources spent
  7. Financial plan
  8. To manage and operate the company
  9. Service that you are providing

Basically a business plans represents a clear picture of your startup in terms of goals and objectives and it reflects how you plan to market your product or operate your business.

So it provides a financial picture of your business.

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3.Select a business structure

The most prominent choice you make when initiating a business is the type of legal structure you choose for your business.

This decision can effect on how much you pay taxes and the amount of paperwork your business is needed to do, the personal accountability you face and your capability to increase money.

Your startup can be a sole trader, a limited liability and a partnership. However the business entity you select will effect many factors from your business name, to your accountability.

You can select a preliminary business structure, and then reassess and change your structure as your startup grows and requires change.

4.Tax, licenses and permits

The most important thing in a business is paperwork which is the prominent part of a business. There are various small business license and permits that may  require for your business in the time of the startup setup.

Also Check  :  10 REASONS BEHIND FAILURE OF STARTUPS

5.Accounting system

To run a startup effectively, the most prominent thing is an accounting system. As your accounting system is mandatory in order to design and manage your accounts, conduct business with others, set your price and file your taxes.

You should know that an accounting system is used to manage the budget, income and other financial activities of a startup.

So it lets a startup to keep track of all kinds of financial deals including expenses, sales and liabilities and is able of creating comprehensive demographic reports that give management or interest parties with a direct information to aid in the decision making process.

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6.Team

A right team is the most important thing when you are going to start a business. And if you are a solopreneur who is running a small business then you may not require contractors but you will still require your own support team.

First of all ensure you take the time to outline position you require to fill, and the job liabilities that are part of each position.

This can be like a small business coach, a mentor etc who can give you business advise or motivates you.

7.Business logo

Basically a logo can represented as the face of a company because it’s the first thing a client can notice about your company. That’s why a well designed logo is most prominent thing in your business. It should be unique enough to be easily recognized.

8.Establish business credit

For establish a business you should have a business credit history which is separate from your personal one.

9.Establish a business entity

First of all we have to know about the types of business entities:

Basically the type of business entity you select will depend on three major factors:

1.Liability

2.Taxation

3.Record keeping

So here we are discussing about the ordinary forms of business entities.

A sole trader is the most familiar form of business organization. Generally it’s simple to form and offers complete managerial control to the owner.

Basically a partnership requires two or more people who admit to share in the profits or losses of a company.

The supreme advantage is that the partnership can’t bear the tax burden are passed through to partners to report on their individual income tax returns.

 

However a disadvantage is liability that each partner is responsible for the monetary responsibility of the company.

Generally a corporation is a legal entity that is produced to manage business.

The firms becomes an entity separate from those who established it that lifts the liabilities of the organization.

So the corporation can be taxed and can be clasp legally liable for its activity. The main benefit of corporate status is the avoidance of own responsibilities.

 

The main drawback is the price to form a business and the immense record keeping that’s needed.

While double taxation is periodically alluded as a disadvantage to incorporation.

The subchapter corporation neglect this situation by permitting income or depletion to be passed through on tax returns, related to a partnership.

10.Location

The site of a business can affect various facets of how it works, such as entire sales and how expensive it is so run.

Location of a business can affect a business’s capability to market itself. It also matters for marketing as also increases to the placements of your advertisements.

Like if you are selecting a company address in the city of London will likely to switch the perceptiveness of your business as it would be perceived to be a part of the economics and high growth culture of the area.

It all depending on your startup, suppliers could affect your location. So for better business operations, it’s prominent to consider the site of your company to make it effortless for your suppliers to reach your place on time to deliver products.

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