12 Basic Steps to Follow When Building Your Own Business

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Are you tired of being an employee? Do you want to be your own boss? Is your salary enough for yourself and the future? If your answer is YES to all three questions, it’s about time to build your own company. It’s not easy but there’s a process for it.

Below are the basic steps you should take if you want to create your own business from scratch:

Think about your own business idea

Do you have a killer business idea that you would like to operate? If yes, then pat yourself at the back. If you still haven’t about any business idea but keen on having your own company, there are ways to brainstorm in coming up with excellent business idea. You can start with research and productive conversation with friends or family.

Do your own research

After identifying your business idea, it’s time do a thorough research about it. You should validate your business idea before starting with anything. Your business idea should solve a problem or offer something in the existing market.

There are ways you can apply when identifying the needs of your target market. One way is to do research. Others include trial and error, focus group. The following questions should have an answer from your business idea:

  • Is there a need for your upcoming service or product?
  • Who is your target market that needs it?
  • Are there any other companies offering the same product or service right now?
  • Describe the competition for your product or service
  • How will you make your business fit into the competitive market?
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Create a feasible business plan

A business plan entails the description of how you’re going to develop the business – from start to finish or launching. Here are the things you need to put on your business plan:

  • Title page: You should start with the name of your business.
  • Executive summary: This includes the business description, the problem that the business wants to solve, the solution, and the need to do it. It’s like putting an appeal to the investor, if there’s any.
  • Business description: You should describe what kind of business you want to start. Describe the industry you belong with. The future of your business should be mentioned too.
  • Market strategies: List down the target market you’re eyeing and how are you going to sell your business or products
  • Analysis: List down both strengths and weakness of your competitors. Mention how you are going to compete with others.
  • Design and development plan: This is where you will describe the product or service and your plan to develop it.
  • Finance: This is where you will explain how to obtain funds and when are you going to complete it. Create a projection of the income and other considerations.

Find the best business structure for you

Business needs a legal structure to operate and it’s a requirement for taxation. It will have an impact to the registration requirement and personal liability. Here are the forms of ownership in businesses:

  • Corporation
  • Nonprofit or cooperative
  • Partnership
  • Sole proprietorship
  • Limited Liability Company (LLC)
  • S corporation

Find enough finances for your business

Starting your own business needs funding – it doesn’t have to require much money but initial funding is needed. This initial funding will cover the ongoing business expenses. You should be able to list down the expenses and estimate the overall cost. Expenses may include the following:

  • Legal permit
  • Licenses and permit
  • Insurance
  • Marketing effort
  • Market research
  • Equipment
  • Event
  • Rent
  • Trademarking

If you have list down all of the expenses you need to cover, it’s time find ways to fund the business. You can combine several ways until you gain the business capital you need. There are numerous ways and it may include:

  • Small business loans
  • Bank financing
  • Crowdfunding
  • Investors
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Pick a business name and register it

A name says a lot of things about certain business type. It’s more than picking the catchy name but it should be legally available. If you have picked a name, check its availability. When selecting a name, make sure that it’s align with your branding. It should be easy to recall and spell. The name should be used in your upcoming business website.

Obtain permits and licenses

In order to launch your business officially, paperwork is a vital process especially obtaining permit and license to operate. Depending on the type of business you’re about to build, there are various set of permits and license you need to accomplish. Do your research so you will have an idea.

Acquire business insurance policy

This is also an important step in creating your own business. Before you officially start, you should be able to buy the right business or commercial insurance for your company. Business insurance will properly protect you from a lot of things such as lawsuit and property damage. Talk a professional insurance adviser regarding the right policy for your business.

Build your support management team

No man is an island, which is the saying that’s true for creating a business. It is recommended to have a support system. You should have trusted and reliable advisers who will be able to extend help with any start-up problems and assist you as the business grow.

The support management team may include lawyer, accountant, or industry expert and association. The team will help you start the business from the ground. If you’re building the business on your own and you’re the only employee, you don’t need a team.

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Set up the accounting system

All businesses are required to have their accounting system. It’s either in-house or outsourced. Bookkeeping is important to keep everything together about finances. You can start with using Excel spreadsheet, allowing you to track the money you spend and receive. Create columns for expenses and revenues and you can add more as you go along the way. If you have more money to spend, you can invest on more reliable accounting software such as QuickBooks.

Open a business bank account

Do this when your business is ready to accept or spend money for the operation. It’s also a requirement to make your business legally compliant and protected. A business bank account is also beneficial to your employees and clients.

Usually, a business bank account includes the following: savings accounts, checking account, credit card account, as well as a merchant service account. What is merchant service account? It’s an account that will allow the business to accept both debit and credit transactions from the clients.

Market your new business

Before you begin selling your service or product, ensure to build your business name and brand. Get a relatively midsize following of people when you start the business operation.

Two of the important things to start with marketing phase is logo and website. A logo will help people to identify your brand quickly and using it consistently across various marketing platforms will leave a recall. Website is also an important marketing platform since it will contain everything that potential clients and customers need to know. It will include about the company, product/services, goals and vision, contact details, and more.

Since today is internet era, social media is somewhat essential marketing platform as well. Social media such as Facebook and Instagram are helpful in spreading the word about your new business and the products or service you’re offering. Ensure that your social media is up to date and post only relevant and interesting content.

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