The 6 Step Process To Starting A Small Business

Every great business started as an idea, and if you have an idea today, what you need to do is take action and follow it up with consistency and determination. Starting a business is certainly not child’s play but it might not really be as difficult as you might think. All you need to do is to make progress, one step at a time, following a simple, step-by-step process.

#1. Choose an idea

Choosing your idea is the first step to starting a business. Although it seems like a very easy thing to do, this is the basic foundation and you will absolutely need to get it right. You might have different ideas running through your head but you will need to settle on one. Preferably, this one idea will be related to a field where you have some expertise and other competitive advantages. Also be sure there is sufficient demand for your products or service.

#2. Write a business plan

To bring your idea into reality, draw out a business plan detailing what exactly you want to achieve and how you are going to go about it. Since you are planning for a small business, it’s best you keep it simple. Some small business planners make the mistake of going too far in their plans, forgetting that they will need to start small.

You will need a realistic plan that will map out your strategy for operations, marketing, finance and etc, and will also take external economic and market conditions into consideration.

#3. Draw out your budget

Be realistic about budgeting and try to include an extra 20% for emergencies, and unforeseen circumstances. Create a plan for how much you’ll be spending quarterly, monthly and even weekly. The budget will keep you on track and will help you predict when you might start making profits, provided you stick with the plan.

#4. Create a business logo and cards

This is an easy step to help potential customers find you. Work on a beautiful business logo that you can place on your website or anywhere else. You should also get some business cards for your business, and share them with your friends, families, and even strangers. By so doing, over time, a larger number of people will get to know about you and what you do.

#5. Meet legal requirements

Get registered and complete the necessary legal steps applicable in your province. It is also vital that you decide on the legal status you would like your business to take, such as a sole proprietorship, partnership or limited liability company, and etc. .

#6. Take care of your money

Keeping proper records of income and expenses, and being able to exercise financial discipline are extremely important competencies for every small business owner. The only way you can know if you are making profits is by keeping proper records of the inflow and outflow of cash. You should also keep your business account away from your personal account, for tax purposes.