Starting a business is a big decision, but one that can often prove to be infinitely beneficial if tackled in the right way. It’s never an easy task, and it carries with it a heavy workload as well as an obvious risk, but that being said, starting a business means becoming your own boss and reaping all the rewards for yourself, which is very, very appealing indeed. Our previous posts on venture capital and business angels may prove to be a useful read here, and are something to bear in mind when examining how to get your business of the ground. If you are considering starting a business, you need to be extremely methodical and careful in your approach; here are five steps to help you get started.

5 key steps towards starting a business

  1. The first step in starting a business is settling on a good idea. It’s not rocket science; you need to have a clear idea of what you want and where you’re going before walking through that door. Your idea needs to result in a product that is able to offer a real-life solution to a real-life problem; something that is useful to people and is going to make them willing to pay for your services. Define your future goals, and give your business a name, too. It’s also very important for you to have a genuine interest in your idea, as you will need to stick to it and know all its ins and outs through thick and thin. Remember to be patient and not let yourself get discouraged, as all this takes time.
  2. You must research your market thoroughly before starting a business. It is of the utmost importance that you know what you’re getting into beforehand; you wouldn’t dive into murky waters without knowing if there were jagged rocks laying beneath them or not. Make sure you do your preliminary market research ahead of your startup. Find out how big the market is, who the competition is, how well funded they are and whether venture capitalists or business angels will be keen on getting involved in it. At this point, you’re looking for drawbacks; if you can’t find any, you’re good to go!
  3. Having a solid business plan is essential when starting a business. Once you’re reached this stage, things start getting serious. Constructing a realistic, effective business plan is simply a must if you’re serious about starting a business. This will help you clarify exactly what you will need to launch your business: Jot down in detail what type of customers you will be targeting, what marketing strategies you will use to sell your product successfully and how you compare with the competition. And, last but not least, be specific on the issue of funding and how much money you will need to take off. It is vital that you are clear and concise about this, as it will be the key to seducing business investors.
  4. Managing your finances efficiently is crucial to starting a business. All these steps are inextricably linked together. Continuing on from the last point, you need to decide on how you’re going to finance your busine; whether you’re going to dig into your life savings, get into bed with venture capitalists, or soar with business angels. Furthermore, and again, you need to keep your feet on the ground and be realistic; it’s improbable that you will make what you’re hoping for as soon as you get started, so make sure you have money stored away for emergencies when starting a business, especially while your company is in its early stages.
  5. When starting a business you must be clear on its legal aspects. It’s very important that you cover all your bases here, too, as you don’t want to fall into any potholes along the way. From building permits to contracts, taxes, fees; the list goes on and on – ensure that you have a decent legal advisor when starting a business! Our post on business mentors may be interesting for you here, as it’s always useful to hear from someone who’s already done what you’re attempting.