A startup is a growing company founded by entrepreneurs (one or more than one) who come up with a product or service while bringing it to the world of business. The first year of starting a business is the most troublesome and critical step during the commencement of a startup.
Here are some crucial steps for Startups:
- Market research:
Conducting market research is the first and most important step when thinking about starting a business. It is a way to gather knowledge about:
- Inherent customers
- The target audience
- Demand and desire of the product
- Market size and value
- The preferences
- The competitors
2. Conjecture the Dedication:
Starting a business is not an easy job. It takes a hell load of hard work, determination, sacrifices and whatnot. It is comfortable to think about starting up a business but implying the ideas and executing them makes anyone’s spine shiver.
3. A business plan:
A business plan is essential as it lays the foundation and principle of the business. Using a road map or a vision board to create through the critical components of one’s market leads to better planning and execution. It includes:
- Marketing strategy
- Budget strategy
- Mission and goals
4. Preparing a budget:
No business works without proper funding and budget. A person’s goal might be greater than the budget, leading to financial problems. Make sure to evaluate your budgets monthly. Self-funding is the most important as you grasp complete authority over the business. Taking money from trustable and long term “angel investors” is also a good move.
5. Prepare a business structure:
Register the business to the government for licenses, copyrights and tax ids for paying taxes. Decide whether the business would be a partnership, Sole Proprietorship, Private Ltd or Public company. Compare ownership and tax structure for business type to avoid chaos and mess in the future. Without assurance like licenses, large companies with resources can purchase the shares, services and products and spontaneously copy them.
6. Register the business, take license permits:
Business owners should register with the federal government to become a legitimate entity and have trademark protection or tax exemption. If the business is a franchise of an established company, it is essential to look through the legal documents. Check if a Seller’s Permit is required. It sanctions the business to collect sales tax from patrons.
7. Build a team and make the employees sign a confidential contract:
Human Resources are the gem of an organization. Without employees, a company would stand now where. So, building a healthy environment with mutual respect between the employees is essential to enhance the workers’ soft skills. Along with that, when it comes to business, trust no one. “Your biggest enemy is someone close to you”. So, preparing a contract agreement that states that no confidential information about the company would get leaked by the employee ensures security.
At last, be optimistic. Starting up a business is quite a strenuous job, but it is not insurmountable. Trying your best and not giving up is the key to success!