7 Essential Steps to Not Miss When Starting a Small Business

Starting a business is an important thing to do in this economy. Small businesses create more jobs than any other business category. However, struggles characterize any startup venture. Most of them face significant challenges because they don't follow all the steps that ensure the foundation of the business is strong. Here is a list of things to do before you start your business. Be sure not to miss any.

Conduct an internal SWOT analysis

Is entrepreneurship for you? It is a simple question. However, it is also the most significant challenge that befalls would-be business executives. Many people want to start businesses, but few are cut out for the job. It takes a lot of dedication, sacrifice, and time to make a business stand on its feet. It also takes learning, training, mentorship, and much more to drive business to sustainable levels.

It is good to ask yourself how far you are willing to go. Nine in every 10 people retire from this treacherous and arduous journey shortly after the first step. Conduct a critical SWOT analysis. Be as nasty as you can ever be. Threats and weaknesses will wear you down this road. Be sure to find a way to overcome them in everything you do.

Narrow down your business idea

Don't be the fox that will have 10 or 20 ideas at the same time. Cut it into one hedgehog idea. Pursue it into details. While it is possible to pursue more than one idea, it is practically impossible to give them everything you have. Most business founders will tell you that their greatest asset is giving their business their best. Give it your best time, skill, knowledge, expertise and so on. Don't shortchange it.

Conduct market research

That idea is as good as a piece of paper. If it falls on water, it can soak while you watch. It is your responsibility to anchor your idea on facts. Market research will help you refine the idea. At least understand how many people are in that target group. What parameters do you use to narrow down business ideas? Technology level, capital requirement, skills-set, and such things can help you.

Foolproof your idea

Is there someone out there who can pay for your product? Is the product even a possibility or it resides in the realm of science fiction? Does it have commercial viability? Some of those questions require solid answers. Make a prototype of your product or service. At least convince customers to buy. Ensure your product or business is scalable in a real market. Gather feedback from the early adopters and improve accordingly.

Prepare a business plan

It is the first professional document that will contain all your strategies from production to customer service. The business plan will be the map that you will use whenever you are lost. Funding agencies will insist on perusing it. Besides, it helps you separate fiction from pragmatism.

Finance your business

If you do the above steps to perfection, it will be easy to find someone to invest in your business. You can also raise funds through other ways. Use the business plan to guide your financial goals and objectives. Also, find a way to pay yourself a salary. If you don't, you will be tempted to use business money for personal things.

Get formal—simply get certification and registration

Decide what legal structure you will adopt. Nowadays, S corporations and LLCs are common among entrepreneurs. Get licenses and regulatory compliance. Formalize your operations including getting a team to help you. It is also good to reduce business liability through insurance. Get business insurance quotes for evaluation. Pick the one that applies to your business.

Conclusion

These steps guide you in setting up a successful business. If you skip steps, you will have more problems through the process.

Carol also is passionate about health and fitness and stays active on her free time. She enjoys hikes and participates in multiple marathons. She loves learning to new tips on health and enjoys sharing her knowledge with her readers