A Startup Guide for New Entrepreneurs
How To Start a Business
Starting a business is an exciting journey, but it can also feel overwhelming. Whether you’re dreaming of launching your first venture or growing a side hustle into something bigger, this guide is here to simplify the process. Let’s turn your vision into a thriving business, step by step.
Idea Aspiration:
What are your skills, passions, and areas of expertise?
What are problems that your business could solve?
What is different about your business that would set you apart from competitors?
Market Research:
Analyze current market trends, customer needs, and competitor landscape to identify any gaps in the market. (This goes back to what sets you apart question above)
Imagine your ideal customer: What do they value? Where do they spend their time online and offline? The better you know them, the more you can tailor your products, services, and marketing to meet their needs
Understand you target audience by identifying what is going to meet their needs, what trends they’re currently doing and where you see them in the near future.
Example: We are a consulting business, years ago reading and buying a book may have been a viable option to buy and read on starting a business… and then here came the internet with its dial-up and the world at your fingertips. With information now being instant you can now have an entire book summarized or a question answered in seconds. Had we started our business when the internet took hold, our trends would have changed from writing “how to” books, sending out mailers, and radio time… to websites, business chats, and eventually blogs (just like the one you are reading right now).
Books are still needed and have plenty of information to share, but when you are looking for change within a certain timeframe, you usually want it as quick as possible.
Especially when it comes to market trends, because those everchanging and the job of marketing is never done.
Brainstorming:
Your ideas are the seeds of your business. Start by brainstorming freely, then evaluate each idea with two key questions:
Does it solve a real problem?
Can it be scaled as the market grows?
We have touched on trends, competitors, and thinking ahead with gaps in the market…
Now let’s touch on idea feasibility. Because let’s face it… just because we think it’s a great idea, it doesn’t matter if we can’t sell it.
First identify if it is a want, a need, or treading the line of a need and want…
The sweet spot is usually a business that can be both.
Here is an example:
A. Corvette
B. A car that will get you safely from point A to B
There is a huge market for car type B because it is a need.
So, the sweet spot would be a very nice-looking dependable car that makes you feel like you are riding in style without breaking the bank.
Another great way to determine feasibility is get out there and talk about your product or service. Ask people what they think, would they be interested in buying, are there any critiques or questions about what you are describing. You could even go as far as to put together a short survey and asking your social media community to give feedback.
Business Consulting Tip - Make sure to add a question asking for contact information and a call to action at the bottom so you can personally reach out to them when you are open for business as potential first clients/customers. Add a sweetener such as a discount.
Building a Solid Foundation:
Think of your business foundation as the blueprint for a skyscraper. A shaky start will limit how high you can build. Solidify your foundation by prioritizing a clear mission, scalable systems, and a strong financial plan before expanding.
I have worked with multiple businesses that did not take the time to build a solid foundation and could not sustain the growth it had amassed.
I call it playing business Jenga. You start with a quick “get you by foundation” and once your business takes off and continues to grow… so does the workload, and the need for you specifically to be in the middle of it to make it work. It’s not a sustainable model due to the fact that you can’t work 24hrs a day and without that rock hard foundation to stand on, you don’t have a guide to follow for quick and correct decision making, you just continue to piece things together as you go, and there even hiring someone to take some of the load off can be a nightmare because you are too overstimulated and busy to train them correctly… which means you will never be happy with their work and they will never be happy working for you.
Where to Start?
Mission, Vision, Values
Mission:
Why do you exist as an organization?
What do you want to be remembered for?
Your mission is a declaration of purpose. It should be concise and specific, so your customers understand your purpose and how it provides value to them.
Example: Our mission statement is
” Helping our clients create their next level using their ideas, our strategy”
It tells you what we do and how we do it in one sentence.
Your mission statement may be longer or even shorter… just make sure it fits where you are trying to go.
Vision:
Where do you see yourself in the next 1-3 years? What about 3-5?
Your vision describes your business as it would appear in a future successful state. It should be inspirational and aspirational. Your vision statement is a broad view of how your company is going to leave an impact on customers and the greater community.
Example:
Our Vision Statement is “Be the sought-out consulting firm for promoting opportunity, growth, and impact within our local community”
Core Values:
Your core values will follow you throughout your business. They are for what you stand and do not stand for.
You will use these to base decisions for needs and growth such as hiring, strategies, customers, etc.
They also tell the world what you are about, how you and your employees will conduct their selves and just as importantly what they can expect with customer service.
Remember to not ignore your values when choosing employees or other businesses to affiliate with.
Business Model Canvas:
Utilize this to visualize your business concept. It includes key components needed for your business foundation. It will also help you gain clarity on what your business structure will look like.
Financial Projections:
Create detailed financial forecast, including startup costs, projected revenue, and potential profitability.
You can use something as simple as an excel spreadsheet for your forecasting. This step shows investors and bankers how you will repay loans and what you intend to do with the money they loan you. This also helps you identify financing needs, optimize your pricing, and time major expenditures while monitoring your cash flow.
Legal Structure:
Now it’s time to choose a legal structure for your new business. Business structure options are
Sole Proprietorship- This is for someone who is wanting to run a small business and does not want to seperate the person from the business. It is just one owner who pays personal taxes at the end of the year.
This would work for someone who is just wanting to have a business as a side hustle.
The positive is cheaper startup costs… The negative is that if you are ever sued, that person can go after business and personal financials and assets.
Partnership-This is a business structure that contains two or more people that will oversee business operations and share profits and liabilities.
LLC- LLC means Limited Liability Company. The main advantage is the limited liability protection. It protects a business owner from business debt and lawsuits against the business when an owner uses an LLC
Corporation- A corporation is a legal entity separate and distinct from its owners. It possesses many of the same rights and responsibilities as individuals, including the ability to enter into contracts, own assets, and pay taxes. Corporations are usually founded with a specific goal and are authorized by the state to act as a single entity.
Setting up your business:
Business name and Registration: Select a unique and memorable business name and register with your state.
Obtain Licenses and Permits: Research and aquire the necessary licenses and permits to operate legally in your area.
Tax Identification Number (EIN): Apply for an EIN from the IRS to manage your business taxes.
Branding and Marketing:
Brand Identity:
Develop your distinct brand including your logo, color palette, and messaging that resonates with your target audience.
Add More Visuals: Provide a simple mockup of a branding checklist:
Define your unique selling proposition (USP).
Create a memorable logo.
Choose 2-3 brand colors that resonate with your audience.
Develop a tagline that encapsulates your mission.
Website Creation:
A lot of people skip this step, but it is really a crucial step in being taken serious as a business. Take the time to build a professional website or work with someone to build it for you to showcase your business products and services.
Social Media Strategy:
Look back at your target market data you have gathered and use that to determine where your target market lives online. Create a page and start giving tips and information about your business and what it can do for them. Important mention for social media is creating an algorithm and strategy to follow. Decide how often you will post and be active on the page and stick to it.
Operations and Management:
Operations is probably the most overlooked and underrated areas of business. It’s also one of the most crucial. Without correct operations in place, you will spend your day overwhelmed and putting out business related fires.
Operations are like the engine of your business. Without efficient processes, even the best ideas can sputter and stall. Start by mapping out workflows for daily tasks, so everyone knows their role.
Inventory Management would be top of the list if you are dealing with products. Establish a system to effectively manage your inventory levels.
Customer Service: Prioritize excellent customer service to foster customer loyalty and positive word of mouth. You never know when a need you can fix can pop up in a conversation.
Pricing Strategy: Determine a competitive pricing structure for your products and services. You want to stay competitive with your competitor’s prices… but within your financial needs as well.
Workflows are part of Operations and are essential when it comes to hiring, here is an example of a workflow aka SOP.
A simplified workflow for a task like customer onboarding, including:
Inquiry Received → Initial Consultation → Contract Signed → Service Delivery → Feedback Request.
Funding Your Business:
Starting a business can be overwhelming without the financial aspect… but it CAN be done, if not, how are there so many business owners out there?
Personal Savings: Utilize your personal savings as initial capital if possible.
Loans: Explore options for small business loans from banks or online lenders.
Grants: Research available grants that align with your business goals.
Crowdfunding: Platforms like Kickstarter or GoFundMe can help validate your idea and raise funds simultaneously.
Angel Investors: Pitch to individuals who invest in startups in exchange for equity.
Key Takeaway:
Starting a business takes thorough research, a clear vision, and adaptability. A great guideline to follow is the unique spin you are bringing with you. Once you realize that you are not re-inventing the wheel…. just improving it, you will see that it doesn’t have to be as overwhelming as business can sometimes be.
