Start A Business: A Step-by-Step Guide For Youth & Beginners

Waqar Ahmad October 14, 2021

0 76 7 minutes read

Start A Business: A Step-by-Step Guide For Youth & Beginners

Start A business, how does it sound to you? Overwhelming or something unachievable? Believe me, it’s not, however, it might require consistent struggle, but breaking down the launching process into smaller baby steps will help you to go far in this journey.

Instead of brainstorming, here’s an effective guide that has been verified by entrepreneurs that allows you to make a decision when to start, where to start, how to identify the market, writing down ideas, deciding structure, acquire permits, and advertise it to finally grow the business and get profit out of it.

If you already have articulated the plan, then good thing you have built the foundation now comes the essential steps that you need to follow right after another.

In this guide, we will unravel all the important steps to start a business that will bring your ideation into creation in corporeal form.

It’s a consistent struggle, but the end result will be worth it. Here’s a step-by-step guide that you need to follow to successfully start a business even if it’s a small setup and you are doing it for the first time.

Table of Contents

Steps To Start A Business

Articulate Your Idea

Before you begin, you must have a clear idea of what you want to sell and at least the market you want to enter into.

You need to start searching the companies around you, what kind of products or services they are selling and how you can do it better than them, or at least provide faster than them at a comparatively cheaper price. It tells you you have a solid plan and you are ready to embark on establishing a business.

Consider Your ‘Why’: While designing an idea, understand your ‘why’. Why you want to start a business, will clarify your motive whether it’s inspired by a personal gain or with a marketplace perspective because, to meet market needs, your business will be more broadened than meeting a personal need.
Think About Franchising: While articulating your idea, you can also think about opening a franchise where the brand and the business model are already established, you just need to find a suitable location and manage your finances.
Choose Your Business Name: Despite your motive behind starting a business, you must be clear about the name you choose, as it says a lot about the idea’s value.
Identify Your Audience: Now is the time to clarify the Audience you want to target, it’s the core phase of ideation because there must be a market for your idea so you are certain who are going to be your customers.

Jot Down Your Business Plan

Once you are certain about your idea and have refined it. What do you need to do now? Ask yourself, why are you doing it? Who are going to be your customers? What have you planned for your outcomes? Lastly, how will you manage the finances required? When you clearly write down your plans, executing them becomes easier.

Are you a beginner and wondering how to start a business? You will most likely rush to make mistakes and forget about finding the right audience and what they want.

Give Attention To Demographics: You must vary the demographics of your clients which are marked as a significant contributor towards success. You can do it by conducting surveys and by doing public data and SEO.

It also lets you know about customers’ preferences, and behaviours as well as the market competitors. If you have a grip on differentiated products, it will allow you to give unique value to potential customers.

Know Where The Exits Are: Be very clear about the exit strategy in your business. When you know how you will exit the business, you get a clear landscape of what you can expect in the future, jeep at least 3-4 well-crafted suit routes, otherwise, it will ruin your company value.

Manage Your Finances

Another important point you still need to consider is your funds to finance your business startup. Do you have enough funds or do you need to take a loan?

Startups usually fail because they run out of funds before profits begin to come, so it’s never wrong to keep huge amounts of funds because it takes time till your sufficient revenue starts.

Determine Break-Even Point: You need to do a break-even analysis which determines when your startup or the service will become profitable. There’s a formula to do it:

“Fixed Costs divided by (Average Price Per Unit – Variable Costs) equivalent to Break-Even Point.”

This formula is an essential tool to assess your budget and helps to calculate profitability, decide prices for products or services, and how much volume you need to sell to get profit.

Determine Your Fundings: First things first, avoid overspending on fancier equipment as it won’t keep you on track. You can take a business loan, taking it via bank is a good choice but it’s difficult to secure.

You can also apply for startup grants, but those are pretty competitive, or if you are lucky you can have an angel investor who incest millions to have a hand in your business setup.

Crowdfunding also helps in this regard, where you launch a campaign to raise funds that are backed up by people.

Decide Your Business Structure

Now comes the part where you have to register your company, but before that determine your business structure, which affects your taxes and personal liability.

What if you choose sole proprietorship? Here you are responsible for all debts and obligations as you are the sole owner, your personal credit is directly influenced by this structure.
Have you chosen a partnership? It means you work with a partner or maybe two and all of you will be personally liable for all the obligations and it’s usually a great idea.
What if you want to segregate your liability from company liability? Choose a corporation that makes your business a separate entity from the owners. There are two types; S and C corporations where C corporations are usually for smaller setups and promote crowdfunding.
Thinking about A Limited Liability Company (LLC)? Good, because for you to start a business especially if it’s small, this structure allows youth legal protection of a corporation as well as the tax benefits of a partnership.

Choose carefully which structure suits your company’s requirements and plans.

Register With The Government & IRS For Licensing

Before legally operating your business setup, you need to get your business licence by registering with state, local, or federal governments

To become a legal business entity, you need to submit your business name, purpose, corporate structure, stock details, and some other important documents that fall into incorporation documents and other agreements.

If incorporation documents are lacking, then you have to register your business as a fictitious DBA or a legal name you have refined and you will get a certification.

After registering you will need to acquire an Employer Identification Number (EIN) from the IRS. Moreover, file specific forms to fulfil your federal and state income tax obligations and get local, federal, and state government permits to start a business officially and legally.

Buy The Right Insurance Policy

You may forget but choosing the right insurance policy before you start a business protects you from a lot of stress. Dealing with theft, customer lawsuits, or property damage at the beginning of a business startup will cost you way too much so having a safe side helps a lot.

You can take business owners’ policy or general liability (GL). This insurance also helps when you have done something wrong or forget to do something at the right time and now it has cost you way too much.

Build The Team

People build the product, so it’s necessary to recruit employees to get your business off the ground and toward the sky. Define each employee’s role, and task how to distribute labor, and keep everyone on board.

Do Marketing & Advertising

To appropriately advertise your brand, you need to utilise social media that will let you interact with customers and you can promote your business, and its service as an online presence does wonders. You must create an attractive logo and a brand identity that builds recognition of your brand.

You must make customer relationships using CRM that stores your customers data and sends marketing campaigns an email to build a connection with the visiting audience.

You must ask for permission from the customers for opt-in consent which builds trust as you are complying with laws such as the CAN-SPAM Act.

Don’t forget to utilise marketing channels such as social media, newsletters, opt-in firms, and websites as it’s essential for long-term growth and ensures a successful launch when you start a business.

Grow The Business

The initial launch to start a business and the beginning sakes are the start of entrepreneurship. The real struggle starts when you work to keep it flourishing and get profit out of it. It might take time but eventually, you will warn more than you invest into it.

You can collaborate with established brands and influencers to get hype, and you can ask them for promotion by lending a free product service or sample.

You can even partner up with a charity gala and volunteer to brand your business. But again, these don’t guarantee growth, you need to be more flexible with every situation coming your way when you start a business.

Bottom-line

In conclusion, it might seem overwhelming to start a business, but with smaller steps, it’s attainable and is pretty satisfying. Initially, you will be required to have an idea, and think about any product or service which you can sell out and will make you distinguished in the market.

Then choose your audience, manage your funds, and decide the business structure whether it’s a corporation, sole proprietorship, partnership or you are thinking about taking an LLC.

After that take your permits, purchase insurance, build your team and advertise which will ultimately help you to grow your business.

Give it a thorough read to understand better what steps you need to follow to get around your entrepreneurship plan.

FAQs On Start A Business

How can I start a business with no money?

You must seek businesses that require minimal investments, or you can simply start freelance writing, graphic designing, or social media marketing which requires nothing but a stable connection or little expertise.

What is the safest business to start?

The safest ones are known to be running a dropshipping site, dealing in antique pieces, becoming a reseller, doing freelance gigs, selling unused clothes, starting a rental business, or others.

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