How to Start a Business in 08 Steps
- Arun Kumar
- Oct 28, 2023
- 4 min read
Updated: Oct 19, 2024
Starting a business maybe exciting but it takes lot of planning, passion and endurance. Let's see how to start a business, step by step.
Note: All business doesn't require all 08 steps mandatorily, however step number 01,02 & 08 are mandatory for all sort of business in general.
Find the purpose of starting the business
When was the last time you felt truly passionate about something? Maybe it was a cause you believed in or a problem you wanted to solve. Whatever it was, you probably felt a sense of purpose driving you forward. Now, imagine if you could harness that same drive and use it to start your own business. That's the power of starting a business with a strong purpose.
If you don’t have an answer to that question, it may be helpful to explore why you want to be an entrepreneur further. Let’s take a look at some of the most common reasons why entrepreneurs start their own businesses—which are probably leading you to do the same.
2. Identify the type of business
Before you start racking up sales, there’s one critical question to answer – what are you going to sell?
Businesses that sell services deliver something non-physical that solves a problem for customers.
On the other hand, product businesses offer tangible goods that buyers can touch and see.
Which option you choose will determine how your entire operation is structured. So which one is right for you? Let’s take a closer look at what are the characteristics of each of these two business models.
3. Choose a business structure.
Once you decide your purpose and type of business from step 1 and 2 next thing would be to finalize the business structure. Based on this all legal, banking, and commercial aspects will be decided. Businesses are categorized based on registration requirements, procedures, investment, and owner liability.
Create a Business Branding
A brand defines a business, product, service, person, or concept in the market. It differentiates your business from others in the same industry and has a set of rules (called brand guidelines) that dictate how that business will be marketed and presented. Branding is establishing a brand—how it looks, what it sounds like, and the defined target audience it hopes to reach.
Open a business bank account
Keeping your business and personal finances separate is key to managing your business finances. It’s standard bookkeeping hygiene and makes it easier to deduct business expenses come tax time. A business bank account can help, and they’re simple to set up.
Different business will have different needs, so choose bank based on your need. Example, all bank branches won't provide a foreign exchange if your business into the import/Export which involves currency exchange.
Select your bank as per your requirements. As all banks have gone digital in this technology world, all the banks are offering good services and products. Being a beginner, just visit a nearest branch to your start-up, just discuss with the branch officer, and if you feel that the branch will suit you and your business go for it.
6. Arrange a business financing
Most businesses need a little capital to get started. However, the majority of business loans are not available to businesses that have been operating for less than six months, and most online lenders prefer at least a year in business. Startups should consider alternative financing options, or try to leverage other strengths of their business, such as strong credit or collateral. If your business does qualify for a loan, be sure to pay attention to interest rates, potential prepayment fees and personal liability terms.
Many business owners rely on their own savings to get started. You can also look into crowdfunding, personal loans, business grants and more. High-growth-potential startups may also be eligible for equity financing, which gives partial ownership, or equity, to investors in exchange for capital.
7. Choose the right accounting software
Accounting software plays a crucial role in managing financial operations for businesses of all sizes. In today's fast-paced and digitally-driven world, efficient financial management is vital for small businesses to thrive.
It is essential to find accounting software that fits your needs so you can perform tasks, like invoicing and payment acceptance, that benefit the company.
By automating and streamlining accounting processes, businesses can save time, reduce errors, and make better-informed decisions.
8. Choose your marketing strategy
Now, your business is all set for sales and final important step is to tell your customers about your product and service to bring them towards your company/brand.
Before deciding your marketing avenues you need to identify target customers. Two widely used approaches are business-to-business (B2B) and business-to-consumer (B2C) marketing.
A marketing strategy is a comprehensive plan designed to promote products or services, attract customers and achieve short, medium or long term business goals.
B2B vs B2C
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