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4 Basic Steps to Starting Your Own Small Business

By: Lynn Ruthe


Millennial Entrepreneurs Primed to Enter New Business World

Choosing a unique concept is one of the most challenging and essential tasks facing any entrepreneur. In order to figure out where you want to apply your energies, start by brainstorming unmet needs in your field. 

Once you’ve found your big idea, create a business plan that includes the following details:

  • Your company mission
  • Your competitive advantage
  • Your target market
  • Your ideal customers and their needs
  • Your competition and how you compare
  • Your strategy is to generate revenue, find investors, and make money
  • Your long-term goals to grow your company over the next five years

Once you’ve researched and developed your business concept, created a business plan, chosen a name for your business, and decided on a location, here are four foundational steps to create a solid company structure:

Step #1: Choose the Proper Licenses

Before you can open your own company in your state, ensure that you are complying with all local, state, and federal laws, regulations, and taxes. Hire an experienced accountant or lawyer to help.

In California, for example, registering with the Secretary of State is a mandatory requirement. Registration is free but you must provide information about your business, such as its name and address as well as information about individuals authorized to represent your company.

Step #2: Get Insurance Coverage

You can avoid financial calamities and achieve your dreams by choosing appropriate business insurance. Small businesses must have insurance to protect them against unpredictable events, such as property damage or theft.

The type of insurance you need depends on the nature of your business. If, for example, you are a roofing contractor, then find affordable quotes for liability insurance to protect your company from accidents on the job site. This will financially protect you and your employees against costly accidents, such as slip-and-fall accidents, property damage, bodily injury, and medical expenses.

Step #3: Fund Your Business

Launching a business successfully requires complex calculations and careful planning about how much money you will need to start and run your company.

Here are some steps you can take to raise money for your startup

First, create a business account at your bank to deposit the capital raised for your company as well as revenues from selling your products and services.

Second, calculate how much money you need for all your overhead expenses.

Next, prepare documentation. When you’re looking to raise money, you will need a well-written presentation, an effective business plan, and a concise executive summary.

Then, research the best ways to fund your startup, including crowdfunding sites like Kickstarter or GoFundMe, loans from banks or family members, and grants from government programs. Also, consider capital from angel investors. 

Step #4: Build Your Team

To succeed you need an excellent leadership team of talented individuals who share your vision. Without a core team to run the business alongside you, your chances of success are slim.

Organizing this team may seem like too much effort or too expensive, but it is a highly effective strategy. Companies increasingly realize that investing in a core team is more profitable than outsourcing everything. Creating a leadership team will result in building a company that offers higher quality goods and provides better customer service based on a deeper understanding of customer needs.

How do you choose the right people for your team? Create a list of the qualities that you want in a team player. Entrepreneurs often spend a great deal of time going over resumes and interviewing people, but they rarely consider the soft skills that make up their best executive employees.

Besides assembling a core team who will work closely with you in your corporate office to manage your business, you should also assemble other types of teams.

Here are some other examples of other teams you could build, too:

  • A remote worker team: These are technically skilled employees who work from home and communicate via the Internet. Your remote team might consist of programmers, website developers, and graphic designers.
  • A freelancer team: This is a selection of independent contractors who work together on projects. You might assemble this team to collaborate on a single project. Or you might hire them for several projects to establish a lasting relationship.
  • A virtual assistant team: This is a group of remote workers who help support company operations if you don’t want to hire too many full-time employees. They handle administrative tasks such as scheduling meetings, typing, making phone calls, and running business errands.

Things to Keep in Mind When Launching a New Business

From the beginning, make sure to develop a clear and comprehensive strategy, ensure that you conduct comprehensive market research, and learn powerful lessons from successful entrepreneurs who have already succeeded in a business like yours.

Published: December 16, 2021

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