A lot of people want to start a new business but they don’t know how to go about it. This is a really big challenge to many because knowing how to solve a problem is sometimes more important than solving the problem itself. If you want to have a good business especially one that you want to last and not fail within the first 5 years, these are the steps you need to follow.
Prepare yourself: you need to prepare yourself for the business you intend to start, read, take classes, attend seminars and so on. There is a saying that prior proper planning prevents poor performance. There are certain questions you need to ask yourself before starting a business; you can read more about them here. Once you have successfully answered these questions, then you are ready to do business and you can move to the second step.
Make a business plan: this is a process that a lot of people try to avoid when starting a business. The only problem is that more than 90% of businesses that avoid this process fail. A business plan has many advantages some of which are:
- It helps you to know whether the business is profitable or if you should discard it
- It helps you to understand the competition
- It helps you identify the risks involved and prepare for them
- It helps you to get loans or assistance from investors
- It helps you understand the management structure of your organization
- It finally helps you to plan and manage your finances and so on.
Raise Start Up Capital: this is a very important process, you need to get enough capital that will help sustain your business over a period of time usually a year till your business starts to generate returns. The golden rule here is, if you’re not working, get personal finance too so you don’t deep your hands into business money.
Determine your business location: this is usually determined by the nature of your business and the kind of product or service you offer. If it’s a manufacturing firm, proximity to potential consumers is the factor to consider but if you’re offering a service, you might want to get a neat and classy environment.
Determine the legal structure: you need to identify what kind of business you are running. Is it a partnership or sole proprietorship? You should also find out if it’s a Limited Liability Company (LTD) or a Public Limited Company (PLC) and so on.
Register a business name: your business needs a name of course, pick a name that is not too common and one that properly represents your business.
Get A Tax ID no: this can be gotten from IRS or FIRS for a small sum of money, it changes regularly but you can check their website for more details.
Register for state or local taxes: it’s one thing to have a tax ID no, it’s another thing to actually register for taxes, failure to do so means your business is illegal. I will advise that you read the tax policies that apply within your state cover to cover before registering your taxes so that you don’t get any surprises.
Obtain business licenses and permits: this is very important too. Find out from key players in your industry what and what you need to get and get them. You can also make your research easily on the internet now.
Start Your Business: once all these have been done, you can start your business, try to overcome the fear and anxiety of starting and just do something, hire an assistant, meet with clients and so on.
These steps are simple and straightforward but anyone you skip may come back to hurt you and your business in the future. Remember the famous quote “what’s worth doing at all is worth doing well”. Kindly leave a comment below if you enjoyed this article.