How do I start up a small business? Small business is a phrase that is used every day by millions of people across the globe. This is because during the past decade the rise of small business has become more substantial than in any other decade prior. This is largely due to the growing number of services that are offered to small business owners, to make it possible for them to keep their business running.
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There really isn't any guidelines for when the term small business is used, however it is simply defined as a business which has a small number of employees. How few employees is debatable, and the definition of when a business changes from a small business to a bigger business differs both by country as well as industry. This number is generally less than 100 employees.
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As I've already explained small businesses due to their nature, are usually sole proprietorships, partnerships, or privately owned. Common in many countries, smaller businesses, tend to be related to: accountants, restaurants, guest houses, photographers, small shops, hairdressers, tradesmen, solicitors, lawyers, small-scale manufacturing etc.
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Running a small business is an exciting opportunity, a great way to introduce yourself into the business world, and to gain business sense.
How much does it cost to start up a small business? Before you spend a lot of money on those start up small business ideas, it's important that you know the facts, so take some time, go to the library or get on the internet and research the basics. If possible talk to a few experts or other small business owners so that you can be sure that entrepreneurship is right for you.
So how do I startup my own small business? Here is a quick list of some things that you can do to get started;
Steps on how to start up a small business
Conduct a feasibility study of your small business startup ideas.
Describe what your typical customer, your product and your competitors. Who will your suppliers be? What will you charge for your product? How will you market your product? These are just a few of the questions you need to answer.
Write a complete business plan.
Do this using the information you gathered from your feasibility study. This is vitally important and often an overlooked step that needs to include a description of your company, its goals, competitors, market, financial information, and of course, how you intend to meet your goals.
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Get your financing in place - funding to start up a small business
How much money do I need to start up a small business? There are many ways to finance your business, from your own savings to personal credit cards to bank loans. If you need credit, know your business plan from front to back and maybe even sideways.
Decide what kind of structure your company will have.
From a legal standpoint, there are three basic choices, sole proprietorship, partnership and incorporation, each with advantages and disadvantages.
Choose a name for your company and check on name availability.
Registering your business name is highly individual, but it’s the first thing associated with your business, so choose your name carefully. You'll need to do a NUANS (Newly Upgraded Automated Name Search) report, which checks your name choices for uniqueness against a database of other business names. A reserved name is valid for 90 days.
- Determine whether there are special permits or licenses that your business will need. Check with county court house or your local tax collectors office for the proper forms.
- Set up your business bank account and record-keeping system.
Your banker will need to see your business documents, and you may want to set up more than one account so you can keep track of your finances better. Record-keeping is required, and can be done manually or with a computer program.
- Purchase insurance.
There are many different types of insurance, but most probably your company will need at least one. For example, if you’re going to have employees, you need to have workers compensation insurance.
- Decide where your business will be located.
Lease your business’ space. Alternatively, you could choose to start your business from home if it’s feasible. There are advantages and disadvantages to starting your business from home. You have tax write-offs for example, but sometimes your image suffers.
READ: 7 Factors To Consider When Choosing A Business Location
- Purchase supplies and office equipment.
You'll need too many things to list here, and of course, each business has different needs. You might need a fax machine and printer. You'll probably need a computer. You'll definitely need paper, pens, pencils and a calculator.
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Being armed with the facts and information you need from the beginning is a giant step towards ensuring the success of your start up small business ideas. So take your time and do your research.
Good luck with your new venture!