Each year, thousands of people attempt to launch their own start-up business. Though many of these entrepreneurs demonstrate commitment and a strong work ethic, many of their businesses never get off the ground due to a failure to properly address the fundamental tasks required before launching any type of business.
1. Conduct thorough market research
Many aspiring entrepreneurs look to start their business without fully identifying and studying the demographics of their target market. In this regard, prospective business owners need to explore current consumer trends and the ability of their proposed business to respond and effectively market their products and services based on those trends. Entrepreneurs should also take the time to study the general state of their given industry and their main competitors. Even if the industry is saturated, a new business could still successfully launch by perhaps identifying and serving a niche market or by carefully investing dollars in an aggressive advertising campaign.
2. Determine size and location
Many successful start-ups begin by launching not in an office environment, but out of the business owner’s home. With today’s technology, many businesses can be founded, operated and managed (at least initially) almost entirely online. This approach could positively impact your required starting budget because you won’t need to pay for office space. Determining the physical size and location of your business also allows you to make better decisions when it comes to funding, such as whether you should consider crowdfunding, angel investors or other financing sources.
3. Establish an identity and construct a business plan
Think of a business plan as a map that helps you evaluate where your business stands and where you want to take it. Before considering all of this, however, you should establish a firm identity that will hopefully last for years. This includes defining your desired company culture, as well as creating and registering a company name, logo and trademarks that properly represent your brand. To optimize your online presence, you’ll also need to register a domain name.
Once this is accomplished, build your business plan. It should detail everything about your start-up that you and potential investors need to know and should include an executive summary, company description, products and services, an overview of your market, revenue estimates, and anticipated expenditures (both one-time and recurring.) Your business plan should also describe the business need for your company and the main problems your business will resolve, along with any major pitfalls that could be encountered.
4. Licensing and legalities
Obtaining and completing legal paperwork, permits and licenses may not be the most glamorous part of the process, but it’s a necessary step towards reaching your goal. Establishing your start-up as a legal entity requires you to choose how it will be structured. For example, businesses can be incorporated as a Limited Liability Company (LLC), as an S or C corporation, or as a sole proprietorship. Each has its own perks, drawbacks, tax implications and licensing requirements. Additionally, remember that the licenses you need to obtain could vary from state to state. Consult a business lawyer to learn the legal requirements for your business type and location.
Launching a business requires strategic planning and a keen eye for detail, and these four steps serve as the building blocks for making it all come together. Consider The Company Corporation's outstanding services for assistance incorporating compliance requirements and other aspects of your start-up
