How to Start a Business 

If you think you're ready to start your first business, here's a step-by-step overview of what you need to do to make it happen.

1. Brainstorm ideas
2. Build a business plan
3. Assess your finances
4. Determine your legal business structure
5. Select your technology
6. Choose your partners
7. Build your team
08. Brand yourself and advertise
09. Grow your business


1. Brainstorm ideas

Every new business starts with an idea. Maybe there's something you're really knowledgeable and passionate about, or perhaps you think you've found a way to fill a gap in the marketplace. Wherever your interests lie, it's almost guaranteed that there's a way to turn it into a business.

Once you've narrowed your list of ideas down to one or two, do a quick search for existing companies in your chosen industry. Learn what current brand leaders are doing, and figure out how you can do it better. If you think your business can deliver something other companies don't (or deliver the same thing, but faster and cheaper), you've got a solid idea and are ready to create a business plan.

2. Build a business plan

Now that you have your idea in place, you need to ask yourself a few important questions: What is the purpose of your business? Who are you selling to? What are your end goals? How will you finance your startup costs? All of these questions can be answered in a well-written business plan.
A business plan helps you figure out where your company is going, how it will overcome any potential difficulties and what you need to sustain it.

3. Assess your finances

Starting any business has a price, so you need to determine how you're going to cover those costs. Do you have the means to fund your startup, or will you need to borrow money? If you are planning to make your new business your full-time job, it's wise to wait until you have at least some money put away for startup costs and for sustaining yourself in the beginning before you start making a profit.
While many entrepreneurs put their own money into their new companies, it's very possible that you'll need financial assistance. A commercial loan through a bank is a good starting point, although these are often difficult to secure.
Startups requiring a lot more funding up front may want to consider an investor. Investors usually provide several million dollars or more to a fledgling company, with the expectation that the backers will have a hands-on role in running your business.



4. Determine your legal business structure

Before you can register your company, you need to decide what kind of entity it is. Your business structure legally affects everything from how you file your taxes to your personal liability if something goes wrong.
If you own the business entirely by yourself and plan to be responsible for all debts and obligations, you can register for a sole proprietorship. Alternatively, a partnership, as its name implies, means that two or more people are held personally liable as business owners.
If you want to separate your personal liability from your company's liability, you may want to consider forming one of several different types of corporations. This makes a business a separate entity apart from its owners, and therefore, corporations can own property, assume liability, pay taxes, enter into contracts, sue and be sued like any other individual. One of the most common structures for small businesses, however, is the limited liability corporation (LLC). This hybrid structure has the legal protections of a corporation while allowing for the tax benefits of a partnership.

5. Select your technology

Just about every business today needs a solid set of tech tools to operate. Some will be more tech-heavy than others depending on the industry, but at the very least, you will likely need a powerful and reliable business laptop or smart device to help you keep things organized.
Since many key business functions — accounting, invoicing, point-of-sale software, presentations, etc. — can now be managed via mobile apps, you might be able to get away with just a smartphone or tablet. For more complex business functions, you'll want to consider a computer with strong security features, storage options and performance speed.
For those who want to operate their business on a smart device, think about whether you'll need a separate phone or tablet for your professional apps and data. For instance, you could route your calls through a third-party app on your existing phone so you don't need to give out your personal cell number. However, if you use the same apps for business and personal purposes, it might be easier to separate them so you don't accidentally share information with the wrong audience.

6. Choose your partners

Running a business can be overwhelming, and you're probably not going to be able to do it all on your own. That's where third-party vendors come in. Companies in every industry from HR to business phone systems exist to partner with you and help you run your business better.
When you're searching for B2B partners, you'll have to choose very carefully. These companies will have access to vital and potentially sensitive business data, so it's critical to find someone you can trust.

7. Build your team

Unless you're planning to be your only employee, you're going to need to hire a great team to get your company off the ground. Joe Zawadzki, CEO and founder of MediaMath, said entrepreneurs need to give the "people" element of their businesses the same attention they give their products.
"Your product is built by people," Zawadski said. "Identifying your founding team, understanding what gaps exist, and [determining] how and when you will address them should be top priority. Figuring out how the team will work together ... is equally important. Defining roles and responsibility, division of labor, how to give feedback, or how to work together when not everyone is in the same room will save you a lot of headaches down the line."

08. Brand yourself and advertise

Before you start selling your product or service, you need to build up your brand and get a following of people ready to jump when you open your literal or figurative doors for business.
Create a logo that can help people easily identify your brand, and be consistent in using it across all of your platforms, including your all-important company website. Use social media to spread the word about your new business, perhaps as a promotional tool to offer coupons and discounts to followers once you launch. Be sure to also keep these digital assets up to date with relevant, interesting content about your business and industry.

09. Grow your business

Your launch and first sales are only the beginning of your task as an entrepreneur. In order to make a profit and stay afloat, you always need to be growing your business. It's going to take time and effort, but you'll get out of your business what you put into it.
Collaborating with more established brands in your industry is a great way to achieve growth. Reach out to other companies or even influential bloggers and ask for some promotion in exchange for a free product sample or service. Partner with a charity organization and volunteer some of your time or products to get your name out there.