Every big business and giant company start small.
There are more than 28 million small businesses in the United States, making up a 99.7 percent of all U.S. businesses, according to the Small Business Administration.
If you’re hoping to start a business of your own, do it from scratch and we’ll walk through the process together.
1. The right mindset
Almost everyone aims for success, but not every small business is positioned for success. In fact, only about two-thirds of businesses with employees survive at least two years, and about half survive five years.
So, it’s a good chance your first trial might not work out as you intended. It’s important to implant the right mindset so that you are not defeated easily.
Nevertheless, there are ways to guaranteed milestones that can lead to a successful small business.
2. Do the research
You’ve already decided that you want to be an entrepreneur, it’s time to ask yourself some questions that are related to reality.
What’s the business idea that suits you most?
Does your idea have the potential to succeed?
Is there a need for your anticipated products/services?
Who needs it?
Are there other companies offering similar products/services now?
What is the competition like?
How will your business fit into the market?
Do a thorough research on the market to identify this need.
3. Make a business plan
Based on the questions above (and more you should have), make a business plan as if you’re trying to interest investors to invest in your project.
This plan will help make your business idea a reality, and it will guide your business from the start-up phase through establishment and eventually business growth.
It’s a must-have for all new businesses.
4. Assess your finances
Starting any business has a price. It will involve initial investment as well as the ability to cover ongoing expenses before you are turning a profit.
It's important to find out how much your startup costs will be.
First, put together a spreadsheet that estimates the costs to startup your business, and how much does it take to keep it running for at least 12 months.
The items include and are not limited to licenses and permits, equipment, legal fees, insurance, branding, market research, inventory, rent, utilities, advertising, production, supplies, employee salaries, etc.
The numbers combined is the initial investment you will need.
5.Choose a legal business structure
Your business structure legally impacts everything from how you file your taxes to your personal liability.
It can be a sole proprietorship, a partnership, a limited liability company (LLC) or a corporation.
The initial business structure can be reevaluated and changed as your business grows and needs changes.
Sole proprietorship. If you own the business entirely by yourself and plan to be responsible for all debts and obligations, you can register for a sole proprietorship.
Partnership means that two or more people are held personally liable as business owners.
Corporation. If you want to separate your personal liability from your company's liability, you may want to consider forming one of several types of corporations (e.g., S corporation, C corporation, B corporation).
It's important to learn about the different legal business structures that are available.
6.Pick your business name. Register with the government and IRS
Before you can legally operate your business, you will need to acquire a variety of business licenses.
A sole proprietor must register their business name with either their state or county clerk. Corporations, LLCs, or limited partnerships typically register their business name when the formation paperwork is filed.
For example, you need to register your business with federal, state and local governments. There are several documents you may need to prepare before registering, such as articles of incorporation or an operating agreement, a DBA, an EIN, income tax forms and other applicable licenses and permits.
7.Grow your business
Now that the preparation is done, it’s time to grow your business and attract clients and customers.
Keep in mind that success doesn't happen overnight. Keep up with the market and make adjustment on time.
And don’t forget why you started.
(Images from the internet)