7 Steps to Starting a Small Business

Step 1 - Decide On the Business Type

This one sounds easy, but this happens to be the hardest and most crucial part. True, you have the right to do something you already have a passion for. And you might have the right skill-set for doing something. But you must consider the marketing and financial feasibility. To illustrate this point, you need to judge the current or potential demand of the product or service you’re planning to offer. And you must make sure that the business is not eating up too much of your time.

Step 2 – Get Thoroughly Updated About The Zoning Laws

Check the zoning laws to ensure that you’re able to get started with you small business with out any legal complications. Some city zones prohibit some special categories of business. There could be clear laws that prohibit people from running certain kinds of businesses – especially their homes. Get to know these things thoroughly, so you don’t end up with a reality shock. Look around, since you never know if you can find a super-cheap office space that costs no more than $100 per month.

Step 3 - Decide On The Name Of Your Venture
The name of your business is more than a name – it’s a brand, an identity and a silent marketing pitch. So pick something that lets people to guess a little bit about your business. The name should be also something on which the business can grow on. Most of all, it should be easy to remember. Using your own name is also a great idea. You’ve seen names like Jacob’s Boutique or Robin’s Pastry Shop, right?

Step 4 - Finish The Formalities For Getting The Licenses & Permits

Now, this is utterly crucial. It’s easy for you to find out loads of info concerning this, if you only check with the town, state or city offices. The local chamber of commerce can be a good source too.

Step 5 - Write The Business Plan

There’s no need to be fancy in this regard. If you’re a practical business person, you would be able to write your own business plan – and hopefully a great one! Make sure you’ve jotted down the best ways to make money. Plan how you’ll cover the overhead expenditures at least at the launching phase. And plan how you want things to be in the start up phase. Smart business planners always visualize things for the first 5 years down the road, at least. Fortunately, there’re truly lots of online programs, solutions and services (many of which are free!) that can effectively help you in getting started on your business plan.

Step 6 - Figure Out The Most Practical Way To Finance Your Business

Actually, this is a part of the business plan step, but it deserves full-fledged your focus. Your ability to raise capital for starting a small business determines how effectively you can conduct your marketing operations. Try to find business loans in the most viable sources. The local SBD could be worthwhile, for instance. Using your personal line of credit is always an option, though. Some people manage to raise funds by finding a partner or two. Your options are limitless - so inquisitive and creative!

Step 7 - Open A Checking Account For Business & Buy The Supplies/Utilities

Banks will welcome you if you want to open a business account. Some banks will even allow you to user the existing checking account as the business account. Decide on the accounting method. Choose between accrual or cash basis accounting. And get the telephone lines, internet connections, computers, furniture and all sorts of office equipment. Don’t forget the seemingly minor supplies like pencils, pens, staples or paper clips.