There is nothing to compare with the joy of starting and running a successful business. So, searching for the first step in starting a business is a sign you actually want to avoid the mistakes that may lead to had I known.
Therefore, you are going to learn or have the list of things needed to start a business from the beginning to the end.
Everything listed here on how to start a small business has been tested and proven to work across all forms of businesses.
In other words, you are about to understand the 6 steps to starting a business that is sure to withstand the test of time.
Even if you are among those saying I want to start a business, but I have no idea, read on because we’ve got your back covered.
Without further ado, let’s delve deep into the things needed to start a business today.
6 Steps to Starting a Business
Step 1. Identify the Reason
The first step in starting a business is to identify your “Reason” for going into the business. In other words, you need to identify your “Why.”
Your “Reason” for starting a business will play a very strong role in determining how far you can go.
Unless you figure out the Reason for going into business, you cannot hang on when the storm challenges come.
Yes, if starting and running a business is easy, there would not be much failure rate across the globe. Therefore, as time goes on, you must be prepared to face challenges along the way.
It is only your Reason for starting the business that will keep you focused.
Below is the list of established reasons for starting a business. So, check well to ascertain your business purpose now.
6 Reasons for Starting a Business
- Freedom from 9 to 5 daily routine
- Being your boss
- Total freedom (concerning your time)
- Improving your standard of living
- Tired of your present job
- Convinced you have a product or service that is in demand
So, identify it today, and you are good to go.
Step 2. Idea Analysis
Identifying a business opportunity or developing a business idea does not necessarily mean that it will thrive.
Therefore, you have to critically analyze the idea in all ramifications by asking thought-provoking questions such as:
How promising and lasting is this business idea or opportunity?
Am I emotionally, mentally, physically, and financially ready to go into this business?
What shall be my safety net in case the business goes badly?
Saying no to any of the questions or not having a clear answer to any of the questions above shows that you still need some time to start a business.
Step 3. Get a Mentor
The importance of a business mentor can’t be overemphasized. A mentor will help you reduce the learning curve by 80% and will reveal the basic principles of running the business.
Let me be specific here, by a mentor. I mean that person who is successful in that particular line of business you intend to start.
So, avoid going for a business coach that can only teach you the general principles of starting a small business.
Every business has its language. And it is only the person that is in the line of that business who understands it. So, go to that person that speaks the language of the business to learn or to be tutored on it
Step 4. Get a Business Plan
The business plan is a complete roadmap to your journey into business. Failure to have one means not being ready to have a sense of direction.
Your business plan is the complete business on paper. It will contain everything, starting from your business idea to the destination you’ll like to get in the business.
The financial aspect of the business should be so detailed that even a novice can read meaning into it.
Remember, investors are more concerned about what they will make at the end of every business. Therefore, your financial projections should be explicit if you may require investors in the future.
Ahsan is a great business plan developer, you can reach him in case you need one.
Step 5. Legal Structure
At this step of starting a business, you need a legal structure. This means legally registering your business with the appropriate authority.
Engage the service of a legal practitioner to guide you in every step needed to start a business in your state.
Though the cost of engaging a lawyer in most states is high, the reward is immense.
I lost a fortune to a business blunder that I could have averted had I engaged a lawyer. So, do not avoid this step of starting a business at all.
Step 6. Form a Team
No matter how small you may think of starting, you need a helping hand. That could be your wife, children, siblings, friends, or employees.
Whoever will work with you must have your business vision and mission at heart. It is usually difficult to form a formidable business team, but it is worth your time.
Remember, there is no sentiment or emotion attached to a business. Therefore, don’t hesitate to fire anyone that does not key into your business vision
First Step in Starting a Business-conclusion
You were specific in your search for the first step in starting a business. But I have gone beyond that by presenting to you 6 steps to starting a business. These are the list of the thing needed to start a business.
So, even if you don’t have a previous idea on how to start a small business, follow the steps above.
Note that it is not going to be a walk in the park. But your “WHY” or “Reason” to start a business should be your propelling force when the storm is high.