One of my friend is a successful entrepreneurs who is doing a perfect business now this time. I was a little bit surprised when I met him a few days ago. He told me in brief that after a long period of struggle, he is now settled with his business. I asked him that why did he struggled for a long. He replied me with a little sentence, “wrong planning and lack of knowledge”.
This not only his problem, this is almost a common fact for many people who wish to setup his business but can’t even start or fail after some months. So, I am trying to write about the basic to setup a small business which will help any startup to grow as a successful business.
The key factor to setup any business is a good and clear business plan, proper financing and a good marketing plan- but I am writing from the beginning.
1. A BUSINESS IDEA
The first thing to start a business is a proper business idea which is perfect for you and your area. To set an idea make a market research with the help of some experienced person within your friends and family. Keep in mind that a unique idea for your locality or area will be the best. So, before starting a business, be sure to accept the proper business idea on what you’re somehow literate or experienced.
2. A GOOD BUSINESS NAME
A good and unique business name can give your small business the identity among the business world. Many entrepreneurs dreaming endlessly for a perfect business or brand name. Make sure that your business name is a mirror which is reflecting your whole business. But if you’re confused about naming your business then don’t think much, use a easy name and start promoting it. Keep in mind that you will be able to rename your business or product in future.
If you really very much sincere to choose a unique and perfect name, then you can offer a campaign (depends on your budget or business idea/plan). A campaign will give you a better and perfect name and at the same time it will help on your marketing in future.
3. BUSINESS PLAN
Planning of the business is one of the key factor to setup a successful business. Make your business plan, write and store it properly, take help from an expert. You should try to collect some business plan on your preferred field and review it sincerely.
4. MAKE THE CAPITAL
After you complete your business plan, make the capital of your business from your financial sources. Maintain a transparent and clear financial report which will help you to attract your financing sources and to administrate in future.
5. CHOOSE YOUR BUSINESS LOCATION
A perfect location is necessary for all business. So be sincere to select the location. At the beginning, be sure to trim the fat. You may have a dream to set up a big and luxurious office, but don’t do that, just set your office at a minimum requirement to administrate your whole business. It will save your costs.
6. REGISTER YOUR BUSINESS
In different countries there are different laws to register a business. Register your business according to your country and local business administration authorities. On this process you should take help from some legal adviser who will guide you to the whole process. The registration process is different for different type of legal structure and ownership as whole proprietorship, partnership, limited liabilities company (LLC), public limited company, Co-operative company or not-profit organization.
7. COMPLETE THE PAPER-WORKS
After registering your business you have to register for state and local tax. Collect all federal, states or local licenses, bank statements, business bank account and other necessary documents like TIN certificate or permit from the quality control authorities.
8. HIRE THE RIGHT PERSON
Hiring the right person is one of the key factor. So, maintain a well experienced Human Resource Management system according to your company’s administrative structure. You also have some liabilities to take care of your employees and in many cases this turn the small business to bigger.
9. SET UP SIMPLE ACCOUNTING SPREADSHEET FOR YOUR SMALL BUSINESS
Don’t worry about your business accounting software, create a simple spreadsheet where you can enter the amount you spend and earn. But If your business structure is complex then you should use some customized software with the help of any ERP specialist.
10. MAKE A GOOD MARKETING STRATEGY
You’re done with the setup of your business, now you can produce, but to sale your products, you need to make a good marketing strategy. Develop your marketing skills and team according to your need.