10 Concrete Steps To Starting a New Business

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Starting a new business is not as difficult as you think. But most times, most people fail to take a bold step towards setting up their dream businesses because of the wrong impression that businesses are hard to start up. If a lot of people have done it in the past and succeeded, then be rest assured you can also succeed.

Businesses are not just set up over night; there are concrete steps that need to be followed if your desire is to make it. Jumping into a new business (be it small or big) without knowing the basic things to do first has actually led some crashing before even kicking off.

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Now why do you think you can just start a new business without proper knowledge or planning, and yet hope to succeed? Houses are not built without first laying a foundation. Certificates and degrees are not acquired without first attending lessons and taking an exam. So also it is with setting up businesses.

Before starting a new business

You must follow the foot prints that have been known to work over time. Here are a few steps to take before starting a new business:

Must Read: Five Things To Consider before Going Into Business With Family

1. Identify your business area:

Identifying your business area is the first thing you must do. These are a few questions that must be answered first: What do you want to sell? What service do you want to render? What do you think you can do very well and succeed? Who are your intended customers? Answering those questions satisfactorily without any sentiments would take you to the next step.

2. Make plans:

There is this saying that “Failing to plan is planning to fail”. Lay out your plans on how to raise capital, recruit workers, expand the business, advertise, get new customers, etc. Make sure your plans are well documented for easy implementation.

3. Get information:

Are you well informed about the business you want to go into? Sometimes we are dreaming of going into a particular field of business because the business is booming, and we think there is much to be made there. But it’s possible that that is not our primary area of training. So we need to get all the information regarding that niche before taking a leap. Every business has its own tricks that the people in there are applying. So get closer to those who have been there to get yourself acquainted with those little tricks. Failure to get the right information might just spell doom.

4. Identify location:

Not all businesses thrive in just any location; there are those that particularly do better when close to certain locations. Find out what makes a particular location best suited for your kind of business. For example, bookshops could do better when sited closer to schools; pharmacy stores do well when sited close to hospital or health facilities, building materials sell better when sited in an industrial area or a construction zone, foodstuff sell better in densely populated areas, and clinics thrive better in slums, etc.

5. Set a legal structure:

Get a qualified lawyer to help you draft a legal document that should protect your business against unnecessary litigations. Mode of employing new workers, their benefits, severance package, etc have to be spelt out in your legal documents. Be sure to include the name of the person who takes over the business upon your demise. Ensure also that your company has legal documents from the state that backs it up against any form of harassment.

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6. Do the first things:

There are other important things that must be done first before starting a new business. Without these your business merely exists but might legally belong to someone else. You need to register a business name. This could be done with the ‘Corporate Affairs Commission’ (if you are in Nigeria), or with any other body saddled with the responsibility of registering new businesses in your country of residence.

Besides, we are in the era of information technology and everybody is making his presence felt online. So as a new business, you need to have a domain name that corresponds to your business name or brand you wish to build as much as possible. Avoid a situation where building a business website or blog becomes an issue in the future due to inability to get a name that represents your brand.

Must Read: Sole Proprietorship – Advantages and Disadvantages

7. Raise the money:

Planning a business without starting capital amounts to waste of energy and time. You must make available the capital with which to start the business. The capital you get depends on your dream or plan. If you are planning on starting a small business, then you don’t need millions of dollars as starting capital. But if you are planning a big project, then you need reasonable capital to kick off the business.

8. Open business bank account:

Your business income must be separated from your personal savings for the purposes of proper accounting, and for the sake of remitting the right tax to the state. You might end up dipping hands in your business money if they are put in the same account with your personal savings.

9. Get a business license:

Apart from registering your business, the local government of operation may require you to get practice license which permits you to run the business for specific periods.

10. Get Tax Identification Number:

Getting a Tax identification Number is also very important as you start off your business. You may get this from the Federal Inland Revenue Service or your state’s Inland Revenue Service. This makes it easier to clear you of taxation issues either now or in the future.

Bonus Points

11. Register with Pension providers:

So long as you are going to employ workers, you need to register your company or business with Pension Providers so that your employees’ pensions can be properly covered. You may not bother if you are running a small business that does not need to employ workers.

12. Take a bold step:

Making all the plans without taking a step would never give you a business. So after all the steps above, you need to take a step and start a business. Put all your fears aside and do something.

Conclusion

Starting a new business is not as difficult. Once you put the above-listed requirements in place, your business is good to go. Fear is a factor that must be eliminated if you hope to own a business of your own. Take a bold step today and you will have course to smile in the future.

Now over to you! Do you have a registered business? How easy was it starting up your new business? Are there steps I have omitted from the requirements? Please share your opinions with us; we would be glad to hear your personal advice. Please remember to Subscribe to our newsletter to receive our regular updates, promo notification and other announcements. If you love this post, share it with your friends.

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8 Comments

  1. Harleena Singh
    January 9, 2014
    • efoghorjos
      January 9, 2014
  2. robinson3d
    January 10, 2014
    • efoghorjos
      January 10, 2014
  3. Harry
    January 10, 2014
    • efoghorjos
      January 10, 2014
  4. Arsalan
    January 25, 2014
  5. Efoghor Joseph Ezie
    January 29, 2014

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