How to start a new business: 10 simple steps

So, you are all set to turn entrepreneur? You are fed up working for others and want be your own boss? If that is true then we are bringing out a few simple steps to help you with your own business. These steps are no rocket science. We are just putting together the logical steps in an organized manner just to make the job easier for you.  You can use it as a checklist when you actually proceed with your plan.

Research more about your idea: You might think you have a very exciting idea, but it is not really so simple to be a successful entrepreneur. That is why so many startups disappear in no time. So do some dispassionate analysis of your idea before getting ahead with it. Find out if the product or concept of yours is really viable in the given market. Talk to others in your circle and see their response. Don’t hesitate to ask for advice from experienced people.

Market research, competitor analysis and financial valuation: Do some rigorous analysis of the market you are planning to enter. In most cases you will find enough market data online. You can also get some annual surveys or analysis published by professional consultants. Get to know who can be your potential competitors and analyze their strengths and weaknesses. Do a complete financial valuation of your project keeping every possible aspect in mind. Take professional help if number crunching is not your thing.

Ensure financing: Make sure that you don’t run out of money before you actually start making some. Get dependable financiers or affordable loans. Check out all the options before making a decision. Also set up your own financial system i.e. company accounts and payments systems for suppliers and employee salaries.

Government formalities: Every land has its own procedures and formalities for setting up new businesses or companies. Get to know the laws of your land. Make sure that you have got all the necessary licenses and permits. Normally the respective government departments or ministries put up the necessary steps in their websites. In any case hire permanent legal and accounting aides to avoid unnecessary goof ups.

Environment, health and safety regulations: There are many rules and regulations nowadays regarding these issues. Especially if you are entering an industry that involves probable health hazards or environmental damages then take all the necessary precautions. You can take it one step further and take proactive measures to improve the condition, thus creating goodwill for you company among the people.

IP rights: If you have invented or created something new, make sure that you get the patent or copyright as soon as possible so that no one else can misuse it. On the other hand, if you are using something already existing, make sure that you are not violating anyone else’s intellectual property rights. Talk to legal experts in that field if necessary.

Recruitment Vs Outsourcing: Once you start your business you will definitely hire some employees. But you don’t have to hire people for every single thing. Only the important and unique functions need to be performed in house. For example you need not design your own website if you are opening a restaurant. Outsource auxiliary jobs and services to get more expert yet cost effective results.

Early branding and positioning: Branding is not only about expensive advertisements. It starts as soon as you come up with an idea. Right from the name and logos you of your company to the location and shape of your office building can make significant statements. So do spend some time with them. Also make up your mind on which segment of the market you are planning to target and position yourself accordingly.

Planning, goals and targets: Prepare schedules for your work and stick to it. Have a thoroughly worked out plan for everything. Get all the equipments and raw materials beforehand. From the location of your plant or office to the supply chain, everything has strategic importance. Try all permutations or combinations before getting ahead. Set your early goals in terms of profits or market share.

Promotion and networking: Once you have completed all the formalities, start some aggressive promotion if your budget permits. Otherwise you can also get some free publicity online if you are in that kind of a business. Never ignore business networking. Use every contact you know to spread the news and get clients. Join relevant organizations or institutions in the industry to increase your contacts.

Of course these things are easier said than done. It will take a lot of hard work and many sleepless nights before you can actually call yourself a successful entrepreneur. But these steps should help you prepare a framework for the challenging road ahead. Best of luck!