Abstract
For many who aspire to become entrepreneurs, the task of starting a business appears quite daunting. While launching an enterprise is a risky decision that carries with it a fair share of challenges and hurdles, if done in a proper and planned manner, the venture can be turned into a surprisingly simple affair. This report outlines a few steps that must be taken to a start a successful business. Broadly, the steps include considering one’s suitability for starting a company, brainstorming business ideas, coming up with a business plan with respect to business objectives, location, finances and potential customers, registering the business, obtaining other licenses and permits and marketing. If these few steps are followed while launching a venture, the entire process, which might seem long drawn and confusing to budding business persons, will be simplified to a great extent. There are various online tools and resources available today that can act as valuable references for those interested in starting a business.
Running a business is not without its fair share of challenges. At the outset, having a great business idea is a must. The idea must then be turned into a business plan, plenty of legalities have to be gone through and importantly, brand awareness must be created in order to start, establish and grow a venture. Indeed, operating a business is not about having the freedom to be one’s own boss; rather it is about having the required management and technical skills, expertise, a clear vision and most importantly, finances.
Steps to be Taken to Launch a Venture
As a first step to starting a business, one must consider whether they are really cut out for the challenging task. They must analyze whether they know what is really involved in starting a business, whether they are suited for self employment and whether they have the required finances. In fact, in the Wall Street Journal, getting into entrepreneurship has been likened to becoming a parent because like with the latter the former also needs plenty of preparation, commitment and hard work (The Wall Street Journal, 2013).
If an individual feels that he or she is capable of running a venture, the next step would be to brainstorm business ideas. Ideas for launching a business can be broadly categorized as those that the individual is knowledgeable or passionate about and those that can fill a void in the market (Fallon, 2013). Another option that budding entrepreneurs have is choosing between starting a new business from the scratch and taking forward a franchise, in which case a lot of spadework would have already been done. The choice that the individual makes depends on his or her interest, the business idea and how financially sound he or she is.
The third step would be to come up with a business plan. For this, a good amount of research is required that is directed at identifying the business goals, an ideal business location and potential customers. Research must also be done to find out how much it would cost to launch the business and what strategies need to be developed to achieve business objectives. Fortunately, today there are plenty of tools and resources available online that help to map out successful business plans (US Small Business Administration [US SBA], n.d.).
Once the individual formulates a business plan with respect to goals, target markets and finances, the next and the most crucial step towards starting the venture is to register it. For this, it must be decided if the business is to be a sole proprietorship, a partnership, a corporation or a limited liability company (LLC). This is an important decision to make from the stand point of income taxing and the amount of start-up finances one has (US SBA, n.d.).
For the business to be recognized as an official entity, it must be registered with the government and the IRS. Registering a trademark for the company name should also be considered as it gives the brand added legal protection. Nowadays, business registrations are done online which makes the entire process quite hassle-free provided all necessary documents and information are duly submitted. After the business is registered, obtaining an Employer Identification Number (EIN) is an imperative as it helps when paying business taxes to the IRS. Some other business documents that need to be put in place include the business license and other local permits such as the home occupation and seller’s permits. Opening a business bank account at this stage would also be appropriate as it helps to keep the confusion out of personal and business finances (Fallon, 2013).
Registration of a business may take anywhere from 3 days to as long as more than 3 months, depending on the business location. In different countries, the time required to complete business registration varies based on the volume of local procedures that must be gone through. Table 1 compares the time needed to start a business in different countries in 2013.
Time Needed (In Days) to Start a Business in Different Countries In 2013
Note. The data in the table are adapted from ‘Time required to start a business (days)’ by The World Bank Group, 2013, retrieved from http://data.worldbank.org/indicator/IC.REG.DURS
Once the business registration is completed, attention must be focused on creating brand awareness to attract customers. Marketing in a planned manner becomes an essentiality here. These days, in addition to advertising via offline means, having a marked web presence is a must if any newly established company is to stand a cut above its competition (Fallon, 2013).
Starting a business might be a risky affair, but if done in a proper manner and with lots of planning there is no reason why a budding entrepreneur cannot launch his or her business through the roof.
References
Fallon, N. (2013, June 26) How to start a business: step by step. Business News Daily. Retrieved from http://www.businessnewsdaily.com/4686-how-to-start-a-business.html
The Wall Street Journal (2013) Starting a business. Retrieved from http://guides.wsj.com/small-business/starting-a-business/
The World Bank Group (2013) Time required to start a business (days). Retrieved from http://data.worldbank.org/indicator/IC.REG.DURS
US Small Business Administration (n.d.) 10 Steps to starting a business. Retrieved from http://www.sba.gov/category/navigation-structure/starting-managing-business/starting-business/
