Starting a business and being an entrepreneur is a good idea but most beginners struggle at a point when figuring out how to start a business that works as expected. Also, it’s smart to build your own business rather than spending your time and energy in building someone else’s business goals.
But for beginners, getting started with a business is a nightmare and most innovative ideas are killed at the initial stages with fear and overthinking. People who’re serious and have built an entrepreneurial mindset can work their asses off to make it happen!
So, if you’re ready to start your new business and building your next big thing, then welcome to the 1% club who’s really innovative, and is ready to work its ass off in building something the future is gonna benefit from.
Here’s a step-by-step beginner’s guide on how to start a business with new business ideas, success stories, and everything you need to get started. Don’t wait, let’s get started, Entrepreneur!
The instant step you can take…
We recommend for those who’re not patient anymore, just claim a domain name for their business and build a small website. You may feel really started and you could build your dream business from there (even if your business is offline, building a brand and online presence is good.)
I use Namecheap to buy the domains, and as you’re a founder, you need to go for the best option with the least budget, here’s where Namecheap is really a pro. Offering domains at the cheapest prices, check out Namecheap and grab a business domain and build your online presence.
A better domain name will lower your lifetime marketing costs.Frank Schilling
Now, you have got a website, or a domain name, registered on your name as a property. Consider your business as launched and continue reading the article to learn more in-depth business starting tips.
What is Business?
A Business is usually defined as an organization comprising of people who strive together to achieve a common goal. The business is usually profit-seeking, they provide goods and services in return for payment.
The person who operates a business is described as self-employed or an entrepreneur. However, being a business owner is not the same as being an entrepreneur although the terms are being used interchangeably in recent times.
To make it short, business owners are people who own a business that may be a proven idea, like a restaurant or fashion brand. While entrepreneurs take on finding an innovative business idea like Uber by taking in more risk to solve a common problem. However, in slang, we can say both are doing business!
Why Start A Business?
Before learning how to start a business, let’s see some of the advantages or benefits of starting your own business. One of the main points is you could make good money by solving a common problem or by making the lives of people easier.
- Working for yourself will be an automatic motivation booster. Each day at your office will be motivated no matter how hard your work every day.
- Following your passion can be the best thing to do in your career. Doing something you love and making a career on that is great.
- Financial independence if you’re business idea is pretty powerful and you’re influencing people’s way of thinking, you can make pretty high profits.
Why not start a business?!
Types of Business
Before learning how to start a business, it’s much appreciated if you’d take your time to check about the different types of businesses. Also, it’s important to find out the type of business you’re gonna start.
- Sole Proprietorship: The simplest type of business that is owned and operated by a single person.
- Partnerships: Type of business owned by two or more people who share the investment, profit and loss, and responsibilities.
- Limited Liability Company (LLC): One of the flexible types of business that offers favorable tax treatment or other perks.
- Corporations: These business types can be enterprises or a separate legal entity created by shareholders.
Types of Business Models
Before starting a business, you have to be clear about your business model and the way it works. You should be pretty knowledgeable about it in a way you should be able to predict the profits.
Some of the highly popular and successful business models are as follows:
- Affiliate Marketing: You are promoting other businesses’ products/services and make money from commissions for the sales/leads generated from your referral. This business model is used by successful startups like NerdWallet and The Wirecutter which generates revenue over $100 million with affiliate commissions.
- Advertising: Ads can be an easy business model that generates revenue for your business idea. Using advertisements as a business model is pretty straightforward: the more users, the more money the business generates. This business model is used by global brands like Facebook, Google, Twitter who sell ad spaces and are generate billions in ad revenue.
- Transactional Revenue: This is the common and traditional way of what actual business is. As in the name of the business model, it is offering any services/products and the customers pay for it and the model is too direct. Almost any company that sells its products like Apple and Microsoft is based on the Transactional Revenue business model.
- Subscription Revenue: The subscription business model is that you want to pay and renew it for a time period, maybe monthly to access the service. Spotify and Netflix are some of the highly popular subscription business models.
- Sales model: The sales business model is pretty simple and you can see it all around. It includes direct sales, indirect sales, retail sales, wholesale sales, web sales and includes agents, retailers, and many others in the cycle. You can have plenty of examples from the business that you see and use in your day-to-day shopping/sales.
- SaaS model: SaaS or software as a service means you’re creating a software or app and charge users with a subscription fee like in the Subscription revenue model. An example will be Dropbox which offers storage and charges users based on their subscription plans.
- Freemium: The service is offered free for the users but is charged for any additional features. This is a highly popular business model and many online SaaS startups are using this model to gain traction and brand awareness. A more popular example is LinkedIn, a social media platform.
Understanding the business model simply means how you are going to help customers and make money from the business. As a business owner, you should be aware of how another business operates and what business model is being used to generate profits.
How To Start A Business?
Now, let’s see the main topic of the entire article, How To Start A Business? As you know, starting a business is unlike starting a car or starting a blog, which can be done pretty easily with a single click or multiple clicks. For building a successful business you need a business plan that works.
Here’s the step-by-step guide on how to start a business.
Step 1: Be ready to start.
As all entrepreneurs say, there won’t be a perfect time to get started, and waiting for being perfect to get started is not always a good idea. First, make your mindset ready to get started, once you’re ready, you’re already started.
Take in the motivation to get a quick boost if something is pulling you from the back. Maybe fear and overthinking can keep you static at the same position over years and your idea of starting a business would just be a dream.
Never look backward, stop overthinking, face your fears, and get started. Your future will thank you for not stopping in the past. As mentioned, getting your mind ready is like you’re already started. You’re now a wantrepreneur!
Step 2: Conduct a market research
How do you know what people really need? Doing market research is essential before launching any business to get an idea of the possibilities of your service, Market research is just knowing about the current stats, problems, and improvements in the segment where you prefer to cater your product/business.
With your market research, you should be able to answer some of the crucial questions that determine your product specifications. The basic questions you should be able to answer after market research are as follows.
- Demand: Is there a desire for your business idea in the market?
- Competitors: How many similar options are available now?
- Pricing: What do customers pay for the alternative options?
Efficient market research can tell you the current opportunity of the idea and the possibilities of turning your idea into a successful and profitable business. Getting an idea of the current stats will help you plan your future moves and spot your competitors in the same niche.
Step 3: Identify your business idea
The crucial step of starting a business is coming to one single business idea from tens of thousands of others. Once you start launching a business, it’s common to have a lot of ideas, and it’s important for you to shortlist and eliminate ideas that won’t be the best fit.
Make use of the market research data along with your own further research to stick to a business idea that would be the best fit and have a long run than others. Here are some of the ways you can shortlist your business ideas to one idea.
- Usability: Make sure if the idea is practically usable for everyone.
- Stability: Check if the idea has market stability over time.
- Profitability: Keep an eye on the revenue opportunity.
Keep in mind, all you need is one good idea to get started in the business. Never make the mistake of starting all your idea that you feel profitable unless you could manage it all. Try focusing on a product and expand the business to multiple verticals.
Step 4: Choose a business model
Before picking the business idea, you have to be sure about the business model being used to monetize or generate revenue for your business. There are plenty of successful business models out there currently.
To recap, the business model is a strategy on how the business is providing value to the customers and generating revenue from it. You can plan any business model or you can combine two business models to build a usable product/service under your business.
Some popular business models:
- Advertising: Selling ad spaces (mostly online but offline too!).
- Affiliate Commissions: Partner with brands to make commissions.
- Subscription Revenue: Offer something valuable so users will subscribe.
- Transactional Revenue: Direct business, offer a service and get paid for it.
- Freemium Business Model: Offer free service but additional features at a cost.
It’s uncommon but it may be worth it if you could discover a new business model that can offer something valuable to the customers and at the same time generate profit for you. Who knows maybe you’re the next innovative business owner who invented a new business model too!
Step 5: Create a business plan
As part of starting the business, you’ve done the market research, found a business idea and fixed a business model to generate profit. Now, you need to create a perfect business plan connecting all the dots of your idea.
Creating a business plan will give you clarity on who will be your target customer, where would your product/service sell, and how it should work. Moreover, things like investment and raising funds (if needed) for your business can also be included in your business plan.
Also, keep in mind, you’re creating a plan for starting up and building your first product as a new business. Your business plan can change as you move ahead, and the business you do after won’t be matching your business plan then.
So, your business plan may change or update with other factors like new technology, new revenue opportunity, or other expansions. It’s an ideal way to create a business plan and update it to keep being better and growing your business.
The business plan should have the following included:
- Company description: An overall view of what you’re company is doing.
- Product/Service: What you’re offering for the buyers/consumers.
- Business Strategy: The way you’re planning to generate sales and profit.
- Business Team: The people who operate as a team, find the ideal team.
- Financial projection: The amount of investment, profit, and finance.
It’s completely okay if you can’t find all the information right now for your business. Just write what your plans are with the currently available information. Moreover, dreaming is also part of planning, overall it’s your dream, so write about your business dream. Let it be true, realistic, and ideal!
Step 6: Find your products/services
Now, you need to be sure of what are you offering for your customers. The product or service you’re offering could be identified and set a target price. You could have to find a layout of your product, its price, and it’s profit.
You maybe already identified your products and business model by the initial market research. But, as you’re near to launching, by now, you should be able to fix the products you’re planning.
If products are being manufactured or created somewhere, you should make sure to work with them and make things ready as there should not be any further delay or confusion.
Step 7: Fund your business
You need money, for business.
Starting a business needs time, effort, and moreover, an financial investment is also necessary to get the ball rolling. Before finding the ways to fund your business, you should be calculating the average funding you might need.
Things you might consider:
- Physical Office: If your business is offline, you might need a location.
- Equipment: Your business setup maybe tools, computers, accessories.
- Marketing: You may need an initial marketing, maybe just to tell you’ve launched.
- License and permit: You might need some money to register and get permits.
- Insurance: Your business should be insured and that needs money.
- Employees: If your business is not a single-owner, then you need to give salaries.
- Online presence: Just creating a website won’t cost much but you should be aware of the charges too.
According to your business model, you might have more or fewer requirements or funding needed. If you’re starting an online business, you might need less initial investment and you may be good to go with a website that you can build for under $3/month.
If the business is offline, you might need more funding, like office space, physical equipment, other employee salaries (if any), and many more expenses which you want to consider.
So, you should now be able to calculate your initial funding amount by considering the expenses and other financial support you might need in running it.
Next, we need to fund our business. Don’t worry, if you don’t have the amount you’ve figure out. All big entrepreneurs have not started with big initial funding.
How to fund your business?
For the initial funding of your business, you have many ways of raising money. Some of the common and popular ways of funding your business are as follows:
- Self-funding: Bootstrapping or using your own savings/money to power your business. This just doesn’t only include your savings, you can add money from your family, ask your friends for support, or even a 401k.
- Investors: You can get initial funding from venture capital investors if they are convinced by your business. They will power your venture, but usually, they can also have other contacts according to your business.
- Loans: You can get a business loan for your new venture if you wish not to use the above methods. You could contact banks to ask for a loan for your new business.
For every above method, you should be sure of your business model, its products, and other things. You might be encountered to explain your business to people and you should be ready to convince them. That’s where a businessman wins!
Step 8: Get your business ready
Now, you as a founder have everything in mind, but keeping it only in mind won’t get things moving. Let’s now plan the things that you might want to consider for starting a business.
- Business Location (for offline business): You might want a place to operate, or else if it’s a single-man business, you could do it from anywhere. Most online businesses are seen starting this way, but if your business needs a physical workplace, you should find a location that is convenient.
- Employees: Maybe, if your business needs a supply chain or other people to work with, you need to hire them. Same here, if it’s a single-man job, you may not want to hire employees.
- Other things: You might need a lot of extra things/resources. The thing about how your business will be working and you will get an idea of what to arrange and set up before getting the business really started.
Now, you should be set up with the basic requirements and once everything is ready, you should be all set to run the business without any further hassles. This step is really important as you may want to work and think like a business owner and get things ready.
Step 9: Name your business
By naming your business, you’re not asked to just name it, brand it. Building a brand around your business is a modern success formula for new businesses. It’s a matter of trust, psychology, and marketing that brand wins the competition, subject to other important factors like quantity, satisfaction, and value for money.
Well, naming your business has a lot of dimensions, from spelling it to pronunciation, everything is to be taken care as this is 2021. You should be focusing on branding which makes your business stand out from the crowd.
Now, how to name your new business, as Google or Amazon did? Well, think creatively is the solution for it, don’t expect a business name in 1 minute, or 1 hour, you may need to think hard in getting the right name that fits your business model.
The ideal business name may comply with the following:
- Should sound good: Let it sound easy and clear when read aloud.
- Easy to say it loud: Let it be easy to say, and not a tongue-twister.
- Has a meaning: If it has a meaning, the better, but not truly needed.
If you’re thinking of IBM or 3M which doesn’t convey anything but its billion-dollar companies, those were established long ago and have been known as the market leaders. Today, starting a business is not a “road not taken“, you will have competitors and maybe it’s crowded.
Also, you could try out Google AdWords to get new keyword ideas from searches being made on Google. And trying a domain search could also help you find a unique name for your business.
You can use my bonus method: Try to find a domain name for your business.
Hope you know what is a domain name? This is simple, the identity or the address of a website online. For example, google.com or twitter.com, or pockethike.com are all domains for different websites, and guess what? Domains are unique!
This is one of the best ways of finding a business name. Most domains will be taken and you may need to try harder to pick one, but this will make sure you’re finding something unique for your new business.
Domain names and websites are Internet real estate.Marc Ostrofsky
How to register a domain name?
Head over to Namecheap for registering your business domain. From the name itself, you know this is one of the cheapest domain registrars you can get so that you don’t want to invest much before launching your business.
Type in your desired name, and see if it’s taken. Try to find a domain name not taken and register it by paying the charges. Yes, now you’re the owner of the domain and you’ve bought your online address for your business.
Note: Don't worry if your perfect domain sis not available, pick one that resembles or try another extension. You can always change domains and redirect your old domain to new domain if needed. Also, if your business is offline, getting yourself a domain name is a good idea.
This could be your first step in starting a business. Also, you can start a website for your business, as mentioned in the next step to start your online presence.
Step 10: Build a Website
As this guide is created in 2021, and with a vision that new entrepreneurs will be reading this article, we have designed this in the most practical way for new business today, online and offline.
You know, businesses today need a website and the COVID-19 pandemic has brought us online, in many segments. It’s a good idea to start a website and build your online presence so that you won’t be offline anytime.
Moreover, most entrepreneurs recommend registering a domain and creating a website as soon as you’re hit by a business idea. This will help you get a feel of started, and you’ll soon think about improving the idea and methods to make it implement.
How To Create A Website?
Getting a website ready is just a 10-minute job and it will be interesting to design your website for your business. For this also, you can head over to Namecheap and pick a WordPress hosting to get started.
Fill in the details and follow the guide and your WordPress site will be live online. And if you don’t have prior experience, that doesn’t stop you from creating a website. WordPress is that simple!
You can use this guide on creating a website to build your website, as this is a beginner’s step-by-step guide so you won’t be stuck anywhere. If you’ve any doubts or want your site to be built by our development team for FREE, just send us a message.
Step 11: Make your business official
Once you’ve worked hard in picking a business idea, writing a business plan, now you want to make it official to be established as a business. Let’s take it to a higher level by registering your business and making it official.
For registering your business, you may want to do the following steps:
Note: Consult a legal advisor, for registering your business.
- Register your business: Register with your brand name as a business.
- Pick the permits and license: Get the needy permits for your business.
- Get Tax Registered: Register your business to the tax department.
Also, you may want a business bank account for transactions in your business name. You can find the select the suitable account from your bank.
Note: You must consider a legal advisor, a CA, or other financial entity for setting up the business as official. You might need various other formalities according to your business model, the category, country laws etc.
Doing the legal requirements will help you set up an office, or buy things and assets in your business name. Getting your business official can have numerous benefits and other advantages.
Step 12: Get ready to take off!
Yes, your business is now set up and you should be prepared to see the growth. While setting up things has taken time, now you should be more focused on making it better and keeping the standards.
As a Founder/CEO it’s your mission to make workers co-operate, develop things that cater the markets, and try out new innovations. If you’re able to take care of hiring smart people and making them work together, you’re half way there!
Set up targets, new launches, and future plans, so that you could move forward and word towards your business goals. Now, begin working hard and track your progress and learn from mistakes. All the best, my new entrepreneur friend!
The business is started: bottom-line
You finished reading a really long article on how to start a business. If your like me who is impatient, I’m sure you might not read it fully rather than skipping with the key takeaways.
The main aim of the article is to help new entrepreneurs understand the way of starting up a business from scratch. I hope this guide helps you in finding the right strategy for launching your business.
Wishing all the new entrepreneurs and wantrepreneurs a great success ahead. Let’s solve a problem and make more money, doing things that we love. All the best business-owners!