How To Start A New Business Venture: A Step By Step Guide
There are over 30 million small businesses in the United States alone, and each year, this number grows exponentially. However, not all new businesses survive; in fact, only 50% of them will survive the first 5 years. Here's what you need to know when starting a new business venture.
Failing in business can be due to the economy, not having the right product, not marketing the business properly, but also running the business unprofessionally. This is why new business owners should know the process and steps of starting a company in order to set it up for success.
Discover the most important steps to register a company and start a business venture the right way.
Think of a Profitable Business Idea
The first step to take before starting a business is to think of a profitable business idea, niche, product, or service. You can brainstorm ideas, search online for profitable niches, or look at the brands you're already using to see if there's a demand on the market for more such products.
Conduct Market Research
Market research is a crucial first step in starting a business. It'll help you see if the market needs a product like yours or if it's already saturated. Positioning in an oversaturated market can be hard, especially if your competitors are well-established companies with huge marketing budgets.
Define Your Target Customer
If you find there's a need for your product on the market, the next step is defining your target customers. These are the people you'll be marketing to, so you need to know their demographics, spending habits, needs, lifestyles, and expectations.
Analyze Your Competition
Next, analyze your competitors and their business and marketing tactics to discover who they're serving. See how they market their products, what their websites look like, how they reply to complaints and comments on social media, and who their suppliers are.
This will help you better define your own business and serve your own customers better.
Write a Detailed Business Plan
Wondering how to start a brand people will love? You need a detailed business plan to guide you and keep you accountable. A business plan is a must if you plan to attract investors, but it's also a great tool for keeping track of business activities, goals, and projections.
Will you be funding your business with your own money? Do you plan to look for investors or get a business loan? You should know exactly how you'll be financing your business before you register it. Click here to learn how to get a business loan.
Project Timelines and Deadlines
Your business plan will contain all the projects and activities you want to complete, as well as projected timelines and deadlines. This is why most business plans are made for at least 1 year in advance, but you can also start with 6 months.
A business plan should also have a detailed marketing strategy listing the marketing activities, budgets, and channels you'll be using. The most essential marketing points include:
- Defining your target market
- KPIs (Key Performance Indicators)
- Marketing goals
- Marketing channels (email, social media, paid advertising, promo materials)
- Marketing software and tools
- Marketing budget
- Marketing team and employees (if applicable)
- Marketing activities deadlines
- Content distribution (website, email, brochures, commercials)
You'll typically learn how to market effectively once you start working with customers and learn about their needs. You can then adjust your marketing strategy and improve it as you go.
If you sell a physical product, you need to find legitimate suppliers who are ready to meet an increasing demand. You should do your research and reach out to suppliers long before you register your business to make sure you have the product in hand to test it for performance, quality, delivery, and durability.
The best way to find suppliers is to look at online directories for manufacturers, wholesalers, suppliers, distributors, and retailers to find the best fit. There are costs associated with using suppliers, especially if you're ordering in smaller quantities. As your business grows, you'll be able to negotiate lower prices for larger quantities.
Register Your Company
Registering a company is easy and quick as long as you know the type of business you want to have. Will you be an LLC or a business start up? Do you plan to hire more people and expand into other branches or stick to one niche?
Talk to a business advisor or an experienced businessperson to learn more about your options. The type of company you register depends on the products or services you're selling, so do your own research before you decide.
Get the Necessary Permits and Licenses
To run a legal business, you need to obtain all the necessary permits and licenses on a state and national level. You can learn about the different documentation you need by visiting your local government agencies.
Hire an Accountant
Next, you need an accountant to take care of the financial aspect of your business, as well as the payroll, taxes, expenses, and all other money-related matters. You can also buy accounting software to keep track of your expenses and revenue wherever you are.
Pick a Location
If your business needs a physical store, you need to start looking for a good location as early as possible. Foot traffic and visibility matter, so start looking at the best spots in your area. You may want to hire a real estate agent to help you find the best options for the best rate.
At the same time, make sure to consider the costs and expenses of running a business in your preferred location. Depending on your state or city regulations, you might need to obtain special licenses and comply with zoning ordinances.
Market Your Business
Now that you've completed all steps for starting your own business, it's time to put your products out there and start marketing. Use social media, email marketing, paid TV or internet ads, and tell as many people as possible about your new venture.
Better yet, hire a digital marketing agency to handle these activities for you.
Launch Your Business Venture Today!
Whether you're a small business owner or you plan to launch an empire, these tips will help you open a new business venture the easy, hassle-free way.
Looking to incorporate an existing business? Read the step-by-step instructions here and compare quotes to find the best fit for you.
Author: Hudson Piccini
Hudson Cynar, a Harvard University alumna and the owner of three prosperous enterprises, is a distinguished business consultant, author, and writer. Her expertise spans multiple business sectors, with a particular emphasis on storage containers, commercial copiers, payroll services, and medical billing software. Dedicatedly investing thousands of hours into product and service research, Hudson crafts insightful reviews to guide entrepreneurs in making informed decisions for their businesses.