Steps to Starting a Business

So, you’ve taken the first and biggest leap and decided to take your first steps to starting a business from home. Congratulations! You’ll be entering a new and somewhat confusing world that will need to be carefully navigated, but will also offer you opportunities for untold success and personal fulfillment.

If you’re one of those people who have spent your whole life working for someone else, setting up on your own can be a daunting task. You might be asking yourself: What are the steps to starting a business? What preparations do I have to make? What will I have to do to get things going? And most importantly, where do I start?

Here we offer you some easy-to-follow steps to starting a business:

1. Decide on the form of business.

Assess your skills and talents, as these will form the foundation that your business will be built on. Will this skill fill a need in the market, or have you found a product that will meet a current need? Think about whether this service or product can be marketed all year round, or if demand for it has been affected by downturns in the economy. Work out whether you are qualified or expert enough to offer the service, or if you will need retraining or brushing up on skills.

2. Assess the potential for profit.

One of the most important things you will need to do when taking steps to starting a business is research your market and understand how you will operate within it. Work out how much you can expect people to pay for your product or service, and whether this amount will be enough for you to make a viable income.

3. Make a business plan.

Business planning may be one of the most important steps to starting a business.This kind of plan is not only necessary if you want to apply for a loan. It’s actually a really good way of setting out on paper how you are going to make your idea work. It will also help you figure out if you have the time, space and energy to devote to making the business a success.

4. Complete the legal groundwork.

You’ll have to decide if you want the business to be a sole proprietorship or a limited liability company. Make the decision carefully after lots of research because this decision will have an effect on your start-up costs and tax situation. Think up a name for your company - this part is fun! - and make sure you register a business name

5. Work out the start-up costs.

Make a list of everything that needs to be done and assign a value to it. That includes processes (like renovations or building an office), initial investments (like a desk or computer) as well as supplies (raw materials for the product you will be making). Will you need an outside investor for this stage of the business? You’ll need to figure out possible sources of start-up-funding such as banks, private investors, or grant-giving authorities.

6. Open a separate bank account.

A lot of home business owners do not give this enough importance when they’re following the steps to setting up a business account .But it’s crucial to have a separate account for your business so that you can keep your personal finances in a different sphere. This ensures more professional dealings right from the start.

7. Review your insurance needs.

Going into business means potentially exposing yourself, your family and your home to risk. You may need small business insurance to cover this risk, or to cover the cost of potentially valuable products you are storing or producing at home.

8. Prepare the home space.

It’s tempting to imagine that your new workspace can simply be accommodated within the existing setup at home. But you may need space for supplies, inventory and equipment, or special climate or power requirements for the materials you’ll be storing. It’s also useful to have a clutter-free area especially to work in so you don’t get distracted by household tasks while on the job.

Once you have taken these steps to starting a business, you will be well on your way to launching a successful and lucrative new career!

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