Many people from several sectors opt for starting their own business ventures. The reasons could vary from establishing a sustainable source of income, supporting the needy with employment opportunities, contributing to the economy, bringing about a change, offering the solution to the industry needs, or even addressing an issue. People who are creative, who think differently and are ready to take risks, choose to begin their new business. In the initial stage, it is necessary to identify the first steps in starting a small business.

Let’s explore the 10 tips for starting a small business

Any ambitious individual who choses to begin his new business, needs to identify the first steps in starting a small business. As one decides to begin a new business, the objective of the business is to generate a decent amount of profit and to gain satisfaction through the business. The individual should adopt a simple, straightforward fool-proof approach which will include connecting with the companies that help start a small business.

The process of starting a new business should be clear with a good subject knowledge and clear understanding of the same.

1) Market Research

Before starting a new business, it is very important to gather sufficient amount of information about the industry the individual is planning to start the business. A thorough market research is necessary to gather the right information about the market and the current market situation. The market research involves an extensive study of number and sizes of competitor companies, customer type, product specifications, product variety available, the price range in the market, approximate number of customers their details with regards to age, sex, location, education, family composition, demographics, geographic, psychological distribution.

2) Business Plan

In the stage of starting a new business, a proper plan of business is prepared which details all the aspects that will have all the dimensions of the business properly included. The process flow chart with all the important aspects of the business are considered. This will have the vendors who will provide the raw material and service support. The client category to be approached for the products and services. Planning of the location, factory/business plant, infrastructure, furniture, storage and material movement systems, employee number, recruitment, power back-up, energy storage, water and electricity supply, vehicle parking, security services, etc.

• Business Funding

It is necessary to identify business funding while starting a small business. Similar to a common household, a business requires a steady flow of funds to keep it running in a healthy condition. Entrepreneurs procure loans from banks or financial institutions which is required for the initial beginning. All the teams will be making efforts in their respective operations, however, there is sometime to be given for the business to get operational in a self-operating mode. In this phase it is essential to focus on cracking the deals which lead to the beginning of the orders from the market. New orders bring in new hope and enthusiasm in the teams. The revenue generated will be used in the business and for the repayment of the loans.

• Choosing the Right Location

Selecting the ideal location is one of the most important steps in starting a small business.
Businesses located in the heart of the city get the advantage of the customers visiting the market, hence the chances of business prospering are more. Small promotional activities can be effective due to the advantage of the location.

• Confirming the Business Structure

Businesses operate in different types of models or structures. It is upto the entrepreneur who has to chose the structure of the business while deciding on the business. The business structure decides the scope and expanse of the business and its futuristic perspectives.

• Creating a Business Identity

The first and the most prominent thing is choosing the suitable name for the business venture. Several points need to be considered like the simplicity, look and feel of the name, its business identity (company logo, stationary material, branding and communication plans).The business name should instantly appeal to the customers and convey the business purpose clearly.

• Business Registration

This is the most important step while starting a small business. Like all other businesses, it is necessary to register the business in the registrar of companies, other government authorities. It is necessary to join the trade associations and business groups to get regular updates of the industry and to get connected to the new opportunities.

• Federal and state tax IDs

With the process of registration getting completed, the entrepreneurs should approach the federal and state departments to get the required tax ids for the business. All the required documentation with payment of the stipulated fees have to be paid as mandated by the law.

• State Licenses and Permits

While starting a small business the next important step is in applying for the state licenses and permits from the concerned authorities. These are useful in availing the government benefits, policies and in doing inter-state business. It helps to save the process of multiple scrutinies and inspections.

• Business Current bank Account

A current account in bank is necessary for facilitating the transactions for the business. All the company formation documents need to be shared with the bank. The banks offer several benefits to the small businesses which can be executed and availed through the current bank accounts. Based on the transaction record, loans are offered at beneficial interest rates.