Steps & Aspects for Starting a New Business

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Lesson Transcript
Instructor: Tara Schofield
You wake up dreaming of a business venture, think about it often during the day, and wish for it before going to sleep. If you want to be your own boss, there are a few simple steps to help you get ready to start your own business. This lesson will help you get going.

Steps for Starting a New Business

Starting a business is an exciting prospect. Each year millions of people venture into the world of entrepreneurship and start their own companies. If you're ready to be your own boss, there are several steps you need to take to launch your company.

It all starts with a good idea. What are you going to offer that will have value, create demand, and attract customers? This is one of the most vital steps for your success. Whether it's a product or service you plan to offer, you need to take time to ensure you will have enough business.

There are many factors that determine if you have a good idea, including competition, uniqueness of the idea, geographic area, and target market, among others. For instance, if you're talented at decorating cakes and want to start a small business offering special order wedding cakes, you'll want to see what the potential is for cake orders. If you live in an area that already has many large bakeries that specialize in wedding cakes or where there is little demand for wedding cakes, you'll have more difficulty growing your business than if you live in an area that has high demand with few suppliers. Do your homework to see if there's a need for your product or service, if there's demand, and if you'll be able to create a solid business.

Next, make a business plan. There are many programs that will help you walk through the steps of creating a business plan. By going through these steps, you have a chance to think through the details of how your business will be organized. For example, will it be a sole-proprietorship, partnership, LLC, or corporation? Additionally, a business plan will help you consider how you'll finance your company and manage operations.

The next step is to create a team. Regardless of if you're the only employee or if you'll hire some help, you'll need professionals to help you get your business off the ground. If you need help with legal forms, find a good attorney to help you get started. If you have no accounting experience, find a bookkeeper to help organize your books. Be honest about areas where you need help and find qualified people to help you in those aspects.

Now it's time to work through the details. After testing your idea, creating a business plan, and organizing a team, you'll know what other details need to be handled before you start. This might include finding a work or commercial space, creating marketing materials, such as a logo and business cards, and, if necessary, acquiring products to sell.

Finally, jump in! Tell everyone you know about your business. Network with potential customers, market to possible clients, and spread the word about your company. Ask for referrals and request that people tell their friends and family about your new business. Creating demand for your product or service is critical to your success.

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