Nine Important Steps When Starting A Business

Starting your own business is something that many people dream about. The idea of being able to work for yourself and be your own boss can be very appealing, but it's not as simple as you might think.
14 October 2021

By Vanessa B

Starting your own business is something that many people dream about. The idea of being able to work for yourself and be your own boss can be very appealing, but it’s not as simple as you might think. There are a lot of practicalities involved in setting up a successful business that you need to examine before taking the plunge into self-employment.

In this article, you’ll see some of the most important steps involved in starting up a business, from developing an idea and deciding on a name you want to use, to how to write a business plan and identify potential customers. 

In addition, take a look at some of the practical issues of running your own company, such as arranging insurance and creating social networking accounts for your company.

Starting a business is hard work; there’s no getting around it. However, if you’re passionate about what you do and work hard at it, then starting your own company can be extremely rewarding and lead to huge success.

Here Are Nine Important Steps When Starting a Business

  1. Select a Name and Legal Structure:

Legal Structure

In order for you to set up the legal structure of the company – there are numerous different types that you can consider; that is why learning from the industry experts on how to register a company with 1st Formations will make the whole process a bit less stressful as they can help you decide on what structure would be most appropriate given your needs and personal circumstances.

Business Name

The next thing you’ll need to do is, think of a name for your business. When thinking of names for your business, don’t choose something that’s too generic, as this will make it harder for you to promote yourself online. 

A good example of difficulty arising from an over-generic name would be “John Smith Plumbing” – this doesn’t specify anything about the proper expertise of the individual or their business which means they’ll have to work far harder than they need to in order to get customers interested enough to actually call them.

It’s better to choose something that is more specific and unique, as this will make it much easier for you to promote your business online.

  1. Write a Business Plan:

When starting your own business, you need to have a clear idea about where you’re going and how you plan to get there. This is why it is always recommended that you sit down and write out your business plan before you start working on anything else, such as building your website or marketing.

Writing out what kind of results and outcomes you want for the company gives you much clearer focus than if every decision was only made when needed. It also helps keep everyone involved in the business synchronized with their responsibilities and tasks to meet those objectives best.

Many people find making a business plan daunting – However, creating a business plan doesn’t have to be complicated. It is best to go old school and sit in a quiet area with a pen and paper in front of you and just write all of your thoughts, ideas and concerns down. Document everything that comes to mind, no matter how ridiculous it may sound to you.

After that, take a small break to clear your head and give your brain some time to calm down. Then, go back to your notes and read every word. Slowly and clearly, make side notes or rewrite some notes if you think it is necessary. But it is vital that you pay very close attention to the details as this can potentially make or break your startup before even beginning.

  1. Find Your Unique Selling Point:

Before you start on the huge task of selling your product or service, it’s good to have some idea about what sets you apart from competitors. This way, instead of being just another company trying to sell something, you can be one of the few who are different enough for people to want to buy from you. 

This is easier said than done, of course, but consider questions such as why would someone choose your business over a competitor? What makes you special? What services or products do you have to offer that others don’t? How will this benefit people who buy from you?

  1. Identify Your Target Market:

Think long and hard about who your target market is before you start selling to the general public. If you provide a product or service that appeals to a niche group of people, then it makes it much easier for you to get noticed and stand out from competitors. 

The best way to identify your target market is by first identifying who they are and what kinds of things they like doing based on their age, gender, location etc. Then, once you know who they are, you can figure out what kinds of products or services they’re most likely to buy.

On top of this, deciding on a target market will help you shape your business so that it becomes more defined – this means being able to easily explain what type of clientele your company caters for, which will make marketing yourself far simpler.

  1. Create a Marketing Strategy:

Now that you’ve come up with an idea about your target market, it’s time to think about how best to bring them in when they’re ready to buy. Another good reason for creating specific buyer personas is so that you can come up with marketing strategies that will appeal to the target demographic in specific ways. Again, the more relevant messaging you can implement when it comes to reaching out to potential customers, the more effective your marketing plan is likely to be.

  1. Arrange Business Insurance:

Before you open your doors for business or start offering all kinds of services, it’s always good to check what insurance needs are required by law in order to operate your business, along with other types of coverage that may be important at a later date. 

For example, many businesses must carry public liability insurance before they can open their doors which offers protection if something goes wrong while you’re doing business and results in harm or damage to another party (the ‘other’ party could be an individual, business or government agency). This kind of insurance is crucial to have in place before you open your doors.

  1. Create Social Network Accounts:

If you’re just starting out, it’s a good idea to register social media accounts for your company, even if you don’t plan on being particularly active with them for quite some time. This will allow customers to connect with you while also making the company appear more professional and legitimate so that they’ll want to do business with you in future.

With 2.89 billion active users on Facebook alone, it’s hard to ignore the benefits of using social media to market your company. Whichever channels you choose, make sure that all relevant contact information is visible, that you respond to questions or queries as soon as possible and include links that allow readers to click through to your official website.

  1. Create Your Business Website:

Once your ideal customers have checked out all of your social network profiles, they might want to find out more information about what it is exactly that you offer before they buy. Therefore, creating a website for your company is a really smart idea.

It’s far easier than it used to be for people to develop their own websites these days via online services that provide simple drag-and-drop tools. Either way, having an easily accessible presence on the Internet is another must-do when it comes to running a business. 

A website will also give you the perfect platform for marketing yourself to people who are browsing the internet – this means that you’ll have a lot of potential customers getting information about your company without even having to search online for it.

Not only should you create a website so that users can browse your products/services, but also because this will help with search engine optimization (SEO), which in turn means more regular visitors are directed your way via Google!

  1. Build Your Team:

If you’re only one person operating your business, then chances are it’s going to be difficult to accomplish all of the things that need to be done in order to make money.

However, this is one of the most difficult aspects of starting out in business in many ways. You not only need to choose people who are reliable, passionate and committed – but also who bring something unique to the table.

If you’ve come up with an awesome business idea, then it’s likely that there will already be employees (possibly even competitors) scrambling for the same gig! So choosing the right person(s) can not only make or break your company but is also your chance to ensure that each role has been filled by someone who really does fit like a puzzle piece into the bigger picture.

Creating a strong team along with solid processes and procedures surrounding sales, purchasing, finance etc., can help free up more time so that you can focus on generating revenue instead of worrying about all other parts of your business.

Good luck starting out!