The Steps of Starting a New Business
The first step in starting a business is deciding what products or services to sell. You will then need to find a supplier for your products. Additionally, you should determine prices for all your products or services. The steps you use for starting a business will vary depending on your type of business. For example, you will need a website for an online business; and a storefront for a retail business. There are also other essential steps involved in starting a business.
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Write a Business Plan
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A business plan is a summary or blue print of your business. One of the first steps in writing a business plan is creating an executive summary, according to the Small Business Administration, SBA. Provide a brief overview of your entire plan in the executive summary, including the history of your company. Another step in writing a business plan is determining the size of your industry. One key measurement for measuring industry size is market potential, which is the total dollar amount spent in your industry, and the number of units purchased. You can obtain market potential information from business reports and trade periodicals. Additionally, you should determine what percentage of the market each competitor holds. Also, list details about your products in the business plan, including the styles, sizes, varieties and flavors you sell.
Financing
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You will need to finance your business no matter how much initial capital you need. Start with a savings account. Many businesses like direct sales require relatively low investments. Apply for a loan through your bank if you need more money than you have on hand. Your chances of getting a bank loan are greater if you have a good credit rating, especially one above 700. Another option is apply for a loan through the SBA. The SBA requires financial details about your business. If you are just starting out, you will need to do a three-year sales forecast. It also helps to conduct a break-even analysis, determining when you expect your business to turn a profit.
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Hiring Employees
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You will need to hire employees before you open your business. Therefore, start the interviewing and hiring process several weeks in advance. If you have a store location, place a note on the door as to when you are hiring. You can also post information on a large sign. Additionally, run a week's worth of classified ads in your local paper. Promote your business on job sites like Monster.com or CareerBuilder.com if you are seeking people for more professionals positions. You can also hire a search firm to help you find qualified employees.
Promoting Your Business
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The easiest way to promote your business is by distributing fliers. However, if you are dealing with business customers, brochures and business cards are more professional. Advertise in coupon magazines if you run a retail location. Coupon magazines are the booklets that are mailed to households every two or four weeks. Place your website in major search engines like Yahoo! or Google if you run an online business. You can also use social networking sites like Facebook or Twitter. The key with social networks is getting massive amounts of people to spread the word about your products or services. Study how competitors market their products or services then promote your products that way. If your competitors are running ads consistently, chances are they are profiting from them.
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