This archive report was first published on 2 January 2020.
Starting a Business: A Step-by-Step Guide ¶
January 2, 2020
Having a business idea is just the first step. To turn it into a reality, you need to do some research to see if it fits in the real world. This involves answering questions such as whether your business will solve a problem, fulfill a need, or offer something the market wants.
Research can employ simple techniques such as using focus groups, trial and error, or basic studying and engaging with other business owners in the field you want to venture into. You will also need to find out what permits and licenses you are required to have for the business.
Once you have finished your research and validated the business idea, you need to come up with a strategy on how the business will run. This includes planning financially and creating a business plan that will guide your business from the start-up phase through establishment and eventually business growth.
Starting a business doesn't have to cost a lot of money. You will however need some initial investment and capacity to cover ongoing expenses before you start making a profit. The initial investment entails one-time startup costs for your business such as licenses and permits, equipment, legal fees, insurance, branding, market research, inventory, trademarking, grand opening events, property leases, and ongoing expenses such as rent, utilities, marketing and advertising, production, supplies, travel expenses, employee salaries, and your own salary.
Once you have the figures, you can pick a method to raise the capital whether it's taking a loan, finding investors and partners, crowdfunding, or bootstrapping – using very little start-up capital or growing your business with minimal investment.
After validating your business idea and planning financially, you need to make it official by registering your business and obtaining the necessary licenses and permits. You should also ensure that the name you pick is not trademarked or being used by another business.
Once your business is registered, you need to set up shop by finding a place of business depending on your idea. This could be a physical address or an online presence. You also need to identify your team, which could be employees or people you outsource from. Even if you are flying solo, you will need to establish a support system, which could include mentors, friends, or family.
Finally, once your business is up and running, you need to promote it to attract the relevant clients and customers. This involves having a marketing plan and a budget for it. While you build that up, you can use what is already available to you, such as social media.
