The 10 Key Steps of Starting a New Business: An In-Depth Look
Starting a new business is an exciting journey, but it also comes with its fair share of challenges and considerations. Whether you're brainstorming your initial idea or preparing to launch your operations, every step along the way is crucial to laying the groundwork for success.
Below is a comprehensive look at the 10 most important steps you need to take when starting your business, equipping you with the knowledge and tools necessary for each phase of your business journey.
Review the steps below and take a look at our New Business Startup Guide for additional information on services, resources, and more.
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Step 1: Refine Your Business Idea
Before you start doing business, it’s best to refine your business idea. What are you offering, who’s going to buy it from you, and how will they transact business with you? This way, you know exactly what you’re doing and where you’re going. As a new entrepreneur, it can be helpful to brainstorm ideas with other business owners, scout out your competitors, and think about who your ideal customers are.
Not only can this help you evaluate the feasibility of your concept, but it also sets an excellent foundation for the next steps.
Step 2: Craft the Perfect Business Plan
A business plan is more than a formality, it’s a document that outlines your business goals, overall strategy, financial projections, and much more. Using a well-structured business plan as a roadmap for your startup can help you measure success as well as potentially secure funding. Your business plan should include the following:
- Executive Summary
- Company Description
- Market Analysis
- Organization and Management
- Service or Product Line
- Marketing and Sales Strategy
- Funding Request
- Financial Projections (including startup costs)
- Appendix
For detailed guidance, refer to the Small Business Administration (SBA) and take advantage of their templates and tools.
Step 3: Select the Right Business Structure for Your Idea
Choosing the right legal structure for your business is an absolutely critical decision that can affect your taxes, liability, and overall business operations.
Types of Business Structures
- Sole Proprietorship: Typically easy to form, but offers no personal liability protection.
- Partnership: Involves two or more people and can be general (GP) or limited (LP) partnerships.
- Limited Liability Company (LLC): Combines the liability protection of a corporation with the tax benefits of a partnership. Keep in mind, owners of single member LLCs are usually taxed as individuals, not companies.
- Corporation: One of the strongest forms of liability protection, but can result in double taxation.
- Nonprofit Organization: Can receive tax-exempt status, but must meet and maintain strict compliance with nonprofit laws.
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Step 4: Register Your Business Name & Get Your EIN
You must choose and register your business name with your state, but first, it’s important to understand the differences in taxes, liability, and costs. You must also obtain an Employer Identification Number (EIN) (i.e., federal tax number) from the IRS. Be sure to research and apply for necessary licenses and permits based on your business type and location, and if required, register your business with local governments.
Visit the SBA's guide for more details.
Step 5: Secure Your Business’ Financing
Securing adequate funding requires more than setting up a business bank account and registering your tax ID number. In many cases, the ability to obtain adequate financing can be pivotal in sustaining your business in the early years and scaling it in the future.
Funding Options for Starting a New Business
- Personal Savings: You’ll assume all of the risks alone, but you won’t have to stress about repaying a business credit loan.
- Small Business Loans: Can be helpful, but may come with high interest rates and hefty repayment terms, depending on the lender.
- Investors and Venture Capital: A competitive process that can be financially rewarding, but it may also result in a loss of control.
- Crowdfunding Platforms: Usually a last resort method, but it can be fruitful if done correctly.
- Small Business Grants: Competitive, but may offer favorable terms as well as guidance.
Explore different funding sources and choose the one that best fits your business model and financial needs. Learn more about financing your small business from the Federal Deposit Insurance Commission (FDIC).
Step 6: Set Up Your Operations
Whether you’re transitioning from being a freelancer to a business owner or you’re starting from scratch, you’ll need to set up a business environment (physically and/or digitally) that’s conducive to success in your particular industry.
Brick and Mortar Businesses
- When considering the perfect location, take into account foot traffic, zoning laws, costs, and street appeal.
- Ensure your space is comfortable for your customers and employees. That includes having the right technology, equipment, security, and overall feel.
- Set up your business profile on sites like Google, Bing, and others, so when potential customers are searching for your services, they can easily find you.
Online Businesses
- Deploy a user-friendly website that explains who you are, what you offer, and how you can help. Also, develop a blogging/vlogging strategy that showcases your expertise in your area.
- Use social media and SEO strategies to optimize your content and grow your reach.
- Continually update the copy on your pages, test different methods, and stick to what works.
Find Your Business Providers.
Step 7: Choose the Right Business Connectivity Solutions
Business Internet Service
Having a reliable Internet connection for your business can be the difference between closing the deal, and missing out on countless potential clients. As such, when new businesses are considering the best Internet Service Provider (ISP) and packages, they should look for:
- Upload and download speeds that meet the demands of your business.
- Bandwidth that can handle high data usage and multiple devices.
- A service provider with a reputation for minimal downtime and excellent customer service.
- The best business Internet service has the ability to scale as your company grows.
Business Internet Connection Types
- Fiber: Generally the fastest form of Internet, but it can be expensive and isn’t universally available.
- Cable: Consistently high speeds and available in most urban areas, with competitive price points.
- DSL: Affordable and widely available, but usually much slower than fiber and cable.
- Satellite: Available in remote areas, but may frustrate with longer latency and lower speeds.
Learn more about the differences between 5g and broadband Internet for your business today.
Business Phone Systems
Whether you’re launching a boutique marketing startup or a law firm, effective communication among team members and with clients is absolutely crucial. Before you sign the contract on your next business phone line, ensure they offer the following:
- Call Forwarding: Ensure every call is captured and directed to the right people.
- Voicemail: An effective system to manage missed calls and ensure you get back to every customer in a timely manner.
- Conferencing: From secure calls with high-stake investors to group calls with the team, conferencing capabilities are a must.
- Scalability: Can be crucial when you’re rapidly growing your sales team and need additional lines every month.
- Integration: This can include the ability to integrate with your ERP, CRM, and other types of management tools, which is especially helpful in industries like manufacturing and logistics.
Business Mobile Solutions
From home repair companies to sales organizations to recruitment firms, most companies need business mobile plans to help them grow, connect, and do their job effectively. When considering the best mobile plan for your business, you should look for:
- Data Plans: Unlimited plans allow your business to stay connected all the time.
- Coverage: Be sure your phone plan offers coverage at your office and throughout your service area.
- Reliability: There’s nothing worse than a dropped call. Your mobile plan should have minimal downtime and consistent service.
- Mobile Device Management: This can be especially helpful if you have a mobile team or a fleet of vehicles.
Networking Solutions
Whether you’re involved in developing new technologies, e-commerce, or you’re opening a restaurant, a well-designed network is crucial for data management and internal communications. A few key considerations include:
- Wired Networks: Typically provides the fastest speeds and most security, but can incur additional costs during installation.
- Wireless Networks: Can be more flexible than wired solutions and easier to install, but may be slower and require additional security measures.
- Network Security: Firewalls, encryption, and regular updates help to protect your business and stakeholders against cyber threats.
- Scalability: Be sure to choose a business network provider that can scale with you as your business adds additional devices and users.
Business TV Services
From sports bars to real estate management companies, many businesses offer television services for employees and customers. In choosing your next ideal video package, you should consider:
- Channel Selection: Ensure the TV plan you choose offers channels that are relevant to your customers and associates..
- Reliability: Choose a provider that’s known for minimal downtime and consistent service.
- Cost: Choosing among multiple packages to find one that fits your budget.
- Integration: Check with potential providers to ensure the service can integrate with your other business tools and network.
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Step 8: Develop Your Marketing and Sales Strategies
Your business is only as good as your ability to attract and retain your customers. Here are a few sales and marketing tips to get you started.
Basic Marketing Strategy Tips
- Know your target market, their pain points, and what solutions you’re providing.
- Conduct a competitive analysis to ensure you’re offering competitive pricing .
- Develop your brand via various marketing channels (social media, direct mail, sponsorships, live events and more.
Sales Strategy 101
- Don’t just wing it: Identify tactics that work, and make sure your team understands and implements them.
- Focus on obtaining qualified leads, wowing your customers, and following up to retain theirbusiness long term.
Step 9: Hiring and Managing Employees
When your team is growing, it’s advisable to hire employees who enhance your company culture. As such, be mindful of the following during your next hiring cycle:
- Understand the legal, tax, and insurance implications when hiring for specific roles.
- Implement recruitment strategies that target the type of employee your business needs.
- Continually maintain and improve your company culture to make your business a place where people want to contribute and grow.
Step 10: Prepare for Business Growth and Scaling
Amazon started in Jeff Bezos' garage, and even then, he had his mind on growth. As such, no matter how small you start, be sure to implement a business model that can scale and account for future growth.
Here are a few tips to consider as you grow:
- Monitor your business performance to identify areas where you can grow.
- Continually update your cybersecurity measures to avoid unwelcome disruptions.
- Adopt a plan of continuous improvement, asking team members for ideas that help you grow.
- Adjust your strategies as needed to account for customer, employee, and location expansion.
How Business Services Connect Can Help With Your New Business
At Business Services Connect, our purpose is to help new business owners to start, maintain, and grow. We support business owners and IT decision makers alike by pointing to useful and proven business connectivity solutions. From high-speed Internet to business mobile lines to network implementation, and more, we’ve got you covered.
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