Starting from Scratch: 10 Steps to Launching a Business

As a small business owner, I can attest that starting a new business is one of the most exciting experiences one could have. When a new business begins, there are no challenges or obstacles, just dreams of a bright, successful future. However, if you fail to cover all the basics before the launch of your shiny new enterprise, your new business may become less than shiny. To open a business correctly, you must register your company with the proper authorities and give it a good foundation for growth. Running a business is easier when you give it a good start right from the beginning. Here are the 10 steps to launching a business, starting from scratch:

1. Make a Plan

Here's what it all begins-the planning stage. This first step is often the toughest, most challenging part of the process. Choose the business of your dreams. Consider your current skill set or the availability of more training, if necessary. Develop your hobby, passion or idea into a printed business plan. A business plan is necessary for financing and for getting partners involved in your venture. Include market research and sampling in your business planning. Buying a franchise or existing business? You should still develop a business plan.

2. Get Trained

Chances are you'll know a lot about your business, but you can never learn too much. Get trained in your business field. Take some college courses or sign up for specialized training in your weak areas. If you don't know much about accounting or administration, tone up with an online class. If your new business is a franchise, you'll be required to participate in company training.

3. Pick a Spot

It's time to pick a spot for your business. If you're running a virtual or home-based business, it's as easy as claiming square footage for an office. Businesses that require brick and mortar should consider the accessibility to foot traffic and parking. Follow all zoning laws. Check with the local authorities to verify that your business is zoned for the area.

4. Get Capital

To start your small business you'll need some cash. Luckily, there are several avenues available for capital, including small business loans, using your own collateral and even research grants. If none of these sources are suitable for you, then you may have to search for investors willing to loan you capital.

5. Determine a Business Structure

The next step to launching your business is to decide how you want to run it. What is your legal business structure? Will your new business be an LLC, a partnership, non-profit or a sole proprietorship? Your decision will affect many aspects of how you run your business, including how you do your taxes and how you bring in investors.

6. Choose a Name and Logo

Step six is choosing the name and any necessary logo for your business. In your business plan, you should have a mission statement or vision for you business. Review these sections to help you choose a name. Cutesy names look good on paper, but don't pick one that is so enigmatic customers can't find you.

7. Contact the Government

You'll want to run your business on the up and up. Call the IRS and request tax ID forms. You can also access these forms on line at the IRS.gov website. You'll need a federal tax identification number to report your taxes. Most states require you to request a state ID number, too. In this process, receive the proper permits and licensing as mandated by your local authorities.

8. Purchase Inventory

Fill the shelves with inventory. Rely on your market research to help you choose the right products. Don't allow vendors to sell you products you don't need. If in doubt, purchase a small sample of products to test the market before committing to a large wholesale purchase.

9. Hire Staff

Hire staff for your small business. This process may take a few weeks, so get started as soon as possible. Review applications, follow up on references and ask for interviews.

10. Grand Opening

Schedule a grand opening for your new business launch. Make it a "grand" affair with lots of balloons, publicity and your personal touch. Throwing a big party will get people through the door of your business. Your grand opening is kind of like a birthday party, but for your business.

Sources:

"Use Our Starting Up Assessment Tool," Small Business Administration.