How to start a business? (in simple words)

how to start a business

How to start a business? (in simple words)

How to start our business in 9 easy to understand steps!

Owning a business for ourselves can be so satisfying, because it will let us be our own boss, having our own set of rules and timings, generating revenues for ourselves and having more room to improve in our career. These are some of the interesting points about starting our own company that attracts many of us to search for how to start a business. However, there are also some other points that may not be pleasant about owning a business like all the hard work it needs or the risks to take for it! There are also many vague points about starting a business that many people don’t know such as how and where to start a company as well as the strategies for starting a business, the fundamentals of starting a business as well as the steps of starting a business! Besides them, there come the questions like starting a business is difficult? Or is it challenging to start a business? Well, here we will learn about these points together in the 9 steps of how to start a business and hopefully, we’ll start our own business soon with better knowledge!

Table of content

How to start a business in 9 steps?
  • How to start a business, step 1!
  • Fundamentals of how to set up a business, step 2!
  • The 3rd step of how to start our business!
  • How to start a business 4th requirement!
  • How to start our business, step 5!
  • Step 6 of how to set up a business!
  • 7th step in how to start a business!
  • 8th fundamental step of how to start our company!
  • How to start a business, final step!
Blog at a glance

How to start a business in 9 steps?

How to start a business

Starting a company for ourselves can be so much beneficial to us in many aspects. The importance of starting a business is that it benefits us financial wise, time wise, development-wise, and so on. However, owning a business doesn’t mean we will be free and the rest is done by itself, it has a dark side to it too! Starting and managing a business requires time, effort, hard work, risk takings, and the ability to tolerate many unknown challenges. This is how we can succeed in entrepreneurship and become successful business owners! Now before proceeding to the 9 steps of how to start a business, I should say that the very first thing we should do before stepping on the path to entrepreneurship is to decide whether we are willing to take the risk and face the challenges or not? Are we ready to face the challenges and difficulties of starting a business? Once we were ready we can proceed to learn about the fundamentals of starting a business and take further actions.
Did you know?

In the year 2020, despite the pandemic situation, more than 4 million new businesses started operating!

How to start a business, step 1!

After deciding about our readiness to start our business it is time to learn about how it is to start a business! The first requirement for starting a business is to have an idea. An idea is the main reason for establishing a company. In fact, our idea is the solution to the target audience’s problems in the market! There are many business ideas out there that are mature and have been used for decades by many businesses such as bakeries, restaurants, laundries, etc. these business ideas are guaranteed to have demands in the society, however, the competition for them is so high and often it will be hard to make much profits with them. On the other hand, there are other types of ideas that are new to the market. Such as the idea of getting taxis online, or having an electric car! These are startup ideas that focus on people’s unsolved problems and bring solutions to them. On the other side, there are other types of business ideas that bring innovative solutions to the people’s struggles that are already being served by other companies’ solutions! Overall, the most important thing here is that we should start our business with an idea, more importantly, an innovative idea! The question here is how to come up with an idea to start a business with? There are many ways to come up with innovative ideas such as getting inspired from other companies and entrepreneurs, searching for opportunities available in the market, finding our interests, etc. However, the best way to find an innovative opportunity to start our company is to come up with a solution to a problem we or our surrounding people are struggling with!

Fundamentals of how to set up a business, step 2!

After finding the right idea it is time to know our target audience and do the market research! This is one of the most important stages in the process of how to set up a business. When we find the solution to a specific problem in the market, most probably we would know which group of people are our target market. They are the ones we are trying to attract and provide our services for, therefore it is important to know who exactly are our target audience! For example, if we are going to start selling board games online, our target audience would be probably teenagers, not moms with ages of 30+! By this I don’t mean there won’t be any other customer from any other group of people,  it means that our idea is a solution for those specific target market that contains the majority of our customers. After understanding our targetted market, it is time for market research. But how should we conduct market research to start a business?
Well, market research is one of the vital stages for every business. In market research, we will learn more about our target audience and their struggles, needs, and expectations as well as learning about who are our competitors on the market! Market research helps us figure out how much demand is there for our products/services in the market! It also helps us understand the ways and strategies of our competitors in the market for solving the market’s problems along with helping us understand about what is missing in the market that people need it! All of these help us detect opportunity gaps and start filling them with our ideas! Many ways like relevant books, articles, online data, SEO analytics can help us do market research and collect useful data. Though, the most accurate way of obtaining the essential information about the market is by interviewing our potential customers!

The 3rd step of how to start our business!

This step depends on the product/service that we are going to provide for the market. If we are going to provide a product or service that is completely new, or it is going to be provided in innovative ways we would need to know this step in how to start our business! However, if we are going to provide an alternative version of what is already on the market and it is accepted by the people in the society, we won’t need this step! This step is all about the minimum viable product or better called MVP. An MVP is the most basic form of our product that contains its most essential feature(s)! At this step, we need to make an MVP and provide it to early customers of our targeted market. It is used to get the potential customers’ feedback about our product and service in order to give us the necessary information about the feasibility of our idea. It also informs us about the missing capabilities that we need to apply to our product or the unnecessary features that we need to take out of it! In fact, it is one of the useful steps in how to start a business.

How to start a business 4th requirement!

After gathering the right information from the market and receiving good feedback about our MVP, we need to take a step further; plan our goals and strategies! In this step, we should plan our short, mid and long-term goals. The goals can include how much market share we are trying to get in a particular span of time or how much revenue we are trying to reach after 1 year of working! After setting up our goals we need to plan the strategies for starting and running our business as well as the tactics needed to apply to reach those goals. These plans include marketing strategies, sales strategies, production strategies, etc. But there remains the question of how to make our plans to start a business?
From the data collected in the market research step, we should have enough information about our industry, market, competitors, and most importantly our customers! Therefore, based on that information as well as customers’ behaviors and preferences along with the right guidance from experts we can plan out our goals and strategies!

How to start our business, step 5!

How to start our business

After planning out our goals and strategies we need to evaluate our financial needs! This is one of the fundamental points in every business! So, how should we evaluate our financial needs to start a business? We should consider our plans and strategies as well as every resource needed to fulfill those strategies and reach our goals! These resources can include employees, technologies, equipment, etc. Thus, we should calculate these costs as well as the other expenses needed to run the business! The cost of the first 6-12 months should be calculated in order to know how much capital we need to start with and cover the expenses before our business gets to a stable point! After that, we should consider the funding part of our business. If we have enough capital we can start it ourselves, if not there are plenty of options about how to fund and start a business such as:
  • Business partners: receiving money from other people and starting the business together as business partners!
  • Crowdfunding: obtaining small amounts of money from normal people to start our business with, either in the exchange of equities or our products/services!
  • Bank loans: getting loans from banks and repay them over a particular span of time!
  • Investors: obtaining money from potential investors to start our business with!
There is an important aspect in assessing our financial needs in starting our company and that is identifying the point at which our business should reach to cover all of the expenses without any loss. This point is called the break-even point. This is actually the point where the total revenue equals total costs and shows us the minimum performance our business needs to run!
Did you know?

About 75% of new firms’ financing are accounted for by credit account, business loans, and credit cards.

Step 6 of how to set up a business!

After the preparation in previous steps, how should we take a further step and start our business?
To settle up everything and get to working our business needs to be known by the government! Well, this step is where we actually legalize everything about our company. This is where we should make up our minds to choose our business structure and the best business name for our company, something that makes good impressions for customers. The business structure is the structure under which our business operates like corporation, (LLC), partnership, etc. Then we should register our business name and structure and obtain certain business licenses from legal authorities. The process of legalizing our business may have different principles and processes in different countries or states! At last, we should open up a business bank account for our company. In fact, this is where we establish credit to start a business. By registering our business and obtaining the needed licenses we will be credited as a legal business and then we can open up a business bank account in a bank!

7th step in how to start a business!

This point is about planning out generally for the whole business. This is where we make a business plan that contains our plans for the next 1-5 years. A business plan is a written document that is usually between 10-100 pages and contains essential information about our business and its plans! So how should we write the plan to start our business?
To write a business plan we should mention our mission and goals, the methods we are going to start and run our business with to acquire those goals, the time frame for each goal, an overview of our finances as well as other information! To know more about a business plan, read the startup business plan article!

8th fundamental step of how to start our company!

Now we reach another fundamental step in setting up our company. When we run a company, most of the time we cannot handle every activity ourselves, because there are different operating activities needed to be implemented in order to reach our goals. Therefore, we would need to build up a team. So how is it to build up a team and start our company?
There are different activities needed to be covered in order to run our business and keep it operating. Some of the main activities are sales, marketing, accounting, and management! Based on the goals and strategies we have already planned out we would know what professions we would need for our business to run. Hence, we would need to hire talented people for each part of our company. When we want to start our business, in order to minimize our costs, we should avoid hiring highly experienced people because they would need higher salaries. Even though, if we needed highly experienced people in some crucial parts of our business, or we wouldn’t have financial limitations we can hire highly experienced employees! Just keep in mind that the human resource in any company is its most valuable resource, therefore we should definitely make a good team and run our business with teamwork; this is one of the best methods of succeeding in our business!

How to start a business, final step!

How to start a business

So, after all these steps and preparations, how should we set a business to action?
Well, the final step is actually launching our business! At this point, we have done whatever is needed to start a business with and we are ready to launch our business. Launching a business would be hard for most of us because we would be at a point where there are not many customers that know us. As a result, without many customers, we won’t be able to make much revenue. Therefore, one of the suggestions that I can give for this situation is to make a website for our business and take it to the online world! Then, by digital marketing strategies, reaching a larger number of people would be faster and easier!
Did you know?

Based on what near half of marketers believe (about 40%), content marketing is one of the most important parts of their marketing strategies! (HubSpot)

Blog at a glance

Owning a business can be so much beneficial for us. Therefore, many people are looking for quitting their 9-5 jobs and start their own business. However, there are a couple of questions like “How is it to start a business?”, “Is starting a business difficult”, “Starting a business is challenging”, “How should I run a business” and so on! Well, besides the benefits we would gain from owning a business, we should know that starting and running a business is difficult and challenging. It needs hard work, effort, spending more than 8 hours a day, courage, and most importantly passion! The most important move before stepping on the path of entrepreneurship is to decide whether we are ready to take this big responsibility or not? Do we have the tolerance for it or not? After making up our decisions we can step into the world of entrepreneurship and start our own business! Here, the fundamentals of how to start a business are explained simply in 9 steps in order to make a clear thought for you to know where and how to start your path!

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