What are 10 Steps for How to Start a Business?

A famous old saying goes, “Choose a job you love, and you will never have to work a day in your life.” That is certainly wise advice when you’re starting a business. If you can build a business around something you love doing, it won’t feel like work. It will be a joy to get up each morning to start a day of “work.” The happiest people in the world are those who have been able to turn their interests into their income.
 
There are many aptitude, personality and career tests that you can take to help point you into a business or career that fits your style. A quick search online will point you toward those tests, but you can also point yourself in the right direction by spending some time in self-reflection, answering the following questions. As a first step, ask yourself why you want to own your own business.
 
1.      Freedom from the 9-5 work routine.
2.      Being your own boss.
3.      Do what you want when you want to do it.
4.      Improve your standard of living.
5.      Boredom with your present job.
6.      Having a product or service for which you feel there is a demand.
 
Some reasons are better than others, none are wrong. Be aware, however, that there are tradeoffs. For example, you can escape the 9-5 daily routine, but you may replace it with a 6a.m.-10 p.m. routine.
 
Try to be objective in the following self-analysis. Remember, it is your future that is at stake!
 
1.      Are you a leader?
2.      Do you like to make your own decisions?
3.      Do others turn to you for help in making decisions?
4.      Do you enjoy competition?
5.      Do you have will power and self discipline?
6.      Do you plan ahead?
7.      Do you like people?
8.      Do you get along well with others?
 
Think about the physical, emotional, and financial strains you will encounter in starting a new business.
 
1.      Are you aware that running your own business may require working 12-16 hours a day, six days a week, and maybe even Sundays and holidays?
2.      Do you have the physical stamina to handle the workload and schedule?
3.      Do you have the emotional strength to withstand the strain?
4.      Are you prepared, if needed, to temporarily lower your standard of living until your business is firmly established?
5.      Is your family prepared to go along with the strains they, too, must bear?
6.      Are you prepared to lose your savings?
 
Certain skills and experience are critical to the success of a business. Since it is unlikely that you possess all the skills and experience needed, you’ll need to hire personnel to supply those you lack. There are some basic and special skills you will need for your particular business. Identify your strengths and weaknesses with the following questions.
 
1.      Do you know what basic skills you will need in order to have a successful business?
2.      Do you possess those skills?
3.      When hiring personnel, will you be able to determine if the applicants’ skills meet the requirements for the positions you are filling?
4.      Have you ever worked in a managerial or supervisory capacity?
5.      Have you ever worked in a business similar to the one you want to start?
6.      Have you had any business training in school?
7.      If you discover you don’t have the basic skills needed for your business, will you be willing to delay your plans until you’ve acquired the necessary skills?
  
Creating a business is a lot of hard work, but it’s also much more rewarding than working for someone else. No longer will you be working hard so someone else can reap the profits. Plus beyond the financial rewards, there’s also a great satisfaction that comes when you answer your entrepreneurial spirit and can look back and say “I built that business!”

The main skill required to start, build, and expand a business is the ability to make good choices. To make a wise choice, you first gather the options, analyze the information, and then choose the option that you think will be best for your needs.
Whether you’re choosing a product, choosing a new location, or choosing who to hire, having a successful business gets down to making the right choices.

After you decide what type of business you want to pursue, the next big choice you have to make is what type of business model you want to pursue. There are a variety of ways to start a business. The choices include becoming a franchisee, joining a multi-level marketing business, or starting as a sole proprietor.

Becoming A Franchisee – There are established firms in almost every type of business that offer to set you up in business as a franchisee. The first business that comes to mind when you hear ‘franchise’ might be McDonalds or Subway, but there are franchises available in every business category, not just foodservice. From house cleaning to computer repair, even dentists and financial planners can join franchise chains. The franchisor provides training, systems, operational support and marketing support for a percentage of your sales, typically from 3% to 10%. You may say, “Why would I want to give someone else a percentage of my sales?,” and there are good reasons that you might choose this business model. As a franchisee, you essentially ‘license’ a turnkey system that they have already developed. They have an established brand, complete with the look, the logo, the products and/or services, and the name recognition. If you’re interested in opening a hamburger stand, do you think there’s a greater potential for profit if you open a McDonalds or your own place called Fred’s Burgers?

The franchise community likes to say, “You’re in business for yourself but not by yourself.” As a franchisee of an established business, you don’t have to reinvent the wheel. It can lower the risk of your business failing because you have experienced experts helping you along the way.

MLM Business – Another type of business is the Multi-Level Marketing business. As a distributor in an MLM business, you have two areas to focus on. The first is to sell the product, whether it’s soap or cell phone service or whatever the product is that you offer. At the same time, you’re also trying to sign up distributors to work under you (called your ‘downline’), who will also go out and sell the products. This is where the ‘multi-level’ comes into play, as you will also get a percentage of their sales.

There are many, many different MLM companies out there, but the one you may be most familiar with is Amway Global. The used to be known as the ‘soap people,’ but they have expanded to be so much more than that. Amway offers the world’s leading brand of vitamin, mineral, and dietary supplements; one of the most popular lines of cosmetics; and many more products to the tune of over $8 Billion dollars in sales each year.

MLM businesses usually have a low-cost to get into, plus they offer the added benefit of profits from your downline. As your downline grows, you continue to receive a percentage of their sales, yet your work for that is minimal. Also, many MLM businesses sell items that consumers purchase every month such as cell phone contracts, cosmetics, or health supplements. Once you make an initial sale and set up an auto-order, the profits roll in off that sale every month.

Sole Proprietor – This is what you probably first thought of when you decided to go into business. “I’m striking out on my own.” For many business people, this is their first option of choice. This is the true entrepreneurial approach. You’re going to create something out of nothing, purely on your skills, knowledge and tenacity. Depending on your type of business, if it takes off and is a big success, you may decide to become a franchisor and license franchises of it as a way to grow quickly.

There’s two different ways to look at a business name. The first one is – your name doesn’t matter! Think of Google, Amazon or Yahoo. The words themselves all started with a different meaning, but the first thing you thought of today was the successful web companies. They have each redefined the word in your mind (although that often takes a huge marketing budget to accomplish.) On the flip side, some argue that you should name your business something that is instantly descriptive of what you do. Think about ‘Geek Squad.’ It’s still a creative name, but it doesn’t take much of an introduction to realize they are geeks who fix computers.

More important than the actual name is the process you need to go through to make sure your chosen name is cleared for your use. If it is trademarked by another company, you will need to choose a different name. To perform a full trademark search and filing, you’ll need professional help (such as www.LegalZoom.com). A trademark is the one of the most important business assets you’ll ever own. It’s your name, your logo, or any other symbol that distinguishes your company or products in the marketplace. Registering your trademark prevents others from using your business identity to market their own products, which can confuse your customers and damage your brand.

To do your own preliminary search as you think about naming options, you can start at www.uspto.gov. This is the United States Patent and Trademark Office. They have a trademark database online called ‘TESS’ that you can search for the names you are wanting for your business, to see if they’re already trademarked by others. Be sure to read all the instructions, as the database is a bit awkward to use (it is the government, you know!) Even if you find a trademark of your name, it may not mean that you can’t use it. Trademarks have to be filed in certain categories. If your categories are far removed from the ones currently filed, and there doesn’t seem to be any possibility that your category would conflict with theirs and damage their brand, you may still be able to get a trademark. When you file, there is a review period and the other trademark owner can file an objection, so it might be easier to start upfront with a different name that had no potential conflicts.

Whether you’re a Fortune 500 Firm, or you’re fortunate to have $500 in your firm, it’s important to look professional. Your first impression makes a lasting impression, so having a quality business card, letterhead, brochures and other marketing materials are more important now than ever. In fact, if you project a professional polished image, your potential customers will not know whether you operate out of a skyscraper or your mother’s basement.
The good news is that it’s never been easier to look professional. With the ease of the internet, it has really become a simple step by step process.

STEP 1: Create Your Logo – Here’s a little free advice for you. Unless you are going into business as a graphic designer, make the investment and have a professional designer create the logo for your new company. With the abundance of clip art and fonts, and ease of use with computers today, everyone has become a designer. but the truth is most people get what they pay for, especially when they have their brother or children design a logo. You’re investing your blood, sweat and tears into this budding enterprise for the next few years, and once you have a logo you don’t want to change it, so start with one that is a quality design done by an experienced designer. You can find graphic designers locally or on the web. A great place to start is at www.LogoWorks.com.

STEP 2: Create Custom Promotional Materials – With your awesome new logo in hand, you’re ready to create a variety of promotional materials. There is an easy way to have high-end professionally designed materials for a very affordable price. At www.stocklayouts.com, they offer design templates that have been created by some of the best designers in the business. Whether you need business cards, letterhead, postcards, or brochures, the StockLayout packages include all the design elements you need, including photos and graphics. You’ll just add your own text and logo, then it’s ready for the printer.

STEP 3: Print Your Materials – Color Sells! If you are printing out your promotional materials on your black and white laser printer, you are not making the sales impact you’re hoping for. It’s simple to order printing online with a few clicks of your mouse. There are many printers online, but a good place to visit is www.PrintPlace.com. Letterhead printing contributes greatly to your professional business identity. Add matching envelopes — and of course, business cards — to your kit and you have a solid corporate identity package. Your letterhead can be printed in full color on both sides, so there are no limits to your design possibilities. Add matching custom printed envelopes, custom note pads and custom labels to complete your corporate identity package.

As part of your business naming process, it’s good to see if your name is available as a top-level domain name for the web. For most businesses, a .com name is preferred. It’s easy to check availability. Go to a web hosting provider such as www.GoDaddy.com where they have a box you can type your name into. It will search the domain database and tell you whether it’s available. If your first choice isn’t available, you may be able to get it in a .net or other domain extension. It’s also fun to see what variations you can come up with to create a memorable web address.

The real key is to get a web address that is memorable. From a marketing perspective, it’s more important to get something that sticks in the consumers’ mind, over always using your exact name. For example, if you are Fred King of Kings’ Plumbing, your initial choice is to see if KingsPlumbing.com is available. However, you might be better served by naming your website something more memorable like, TheRoyalFlusher.com. The other thing to think about is that domain names are so cheap, that you could buy both of the names and redirect them both toward the same website.

Once you’ve chosen your web address, it’s time to get your web site up and running. There are many ways to do that as well. Most web hosting companies offers some easy site building options when you purchase your domain name. But building a website is a lot like designing a logo. Anyone can do an amateurish job, but this is something that will represent the professionalism of your business. You can get a professionally designed website for an affordable price. Look for a web designer on your local Craigslist.com or at www.eLance.com.

Once your business is up and running, success is based on building customer relationships. For most products and services, the customer has many different places where they can spend their money. You have to stand out in the crowd, and that comes by building a relationship with them.

There are many ways to build a customer relationship. These include thank you cards, direct mail advertising, frequent buyer programs, customer appreciation events, private sales, and birthday cards. But in this digital age, by far the least expensive method to build a customer relationship is through email marketing. This is also one of the most effective marketing methods. By building a list of customer email addresses, you can build that relationship by contacting them on a regular basis, and it costs you almost nothing!

Instead of building this list in your computer and using your own email account to do the bulk emailing, it’s better to use a company that is experienced and has the knowledge to do it right. If the major Internet Service Providers (like Yahoo, Google, Comcast, etc.) think that you are sending out spam, they will ‘blacklist’ your email account and not allow any of your emails through. That’s why it’s safer to use an outside provider that is ‘whitelisted’ by all the major ISPs. One of the leaders in email marketing is Aweber.

You can check them out at www.Aweber.com.
Your business may not be a retail business that would email coupons and sale notices to their customers, but that doesn’t mean you can’t build a customer relationship through email. If you have a professional or service business, seasonal tips are always a welcome email. For example, a heating and cooling company might send out reminders that it’s getting hot, time to have your air conditioning serviced. The key is to build your email relationships, offering useful advice and information that your customers will appreciate receiving – otherwise they will delete their names from your email account, and you will lose the ability to market to them.

Another key to start-up success is to make it easy for customers to spend money. After all the work you put into it to win customers and make sales, it makes no sense to put hurdles in their way that makes it hard for them to do business with you. Every sales speedbump that stands between your customer and finalizing the sale, is one more opportunity for them to abandon the purchase and move on to another company who is more customer friendly. Following are some of the common sales speedbumps:

• Payment Restrictions – Offer as many payment options as possible – cash, check, credit, debit, etc. For larger purchases, set up corporate accounts or arrange financing.

• Eternal Hold – Have you ever called a company, only to be placed on hold for a really long time, or had to work your way through a seven-layer phone tree maze just to get to a live person? Remember that 10 seconds on silent hold with no music or messaging feels like a minute to the waiting customer. That means the minute you took to finish up another call felt like six minutes to the customer on hold.

• Under Staffed – There’s nothing worse than trying to make a purchase, but you can’t find anyone to pay. Similarly, if you are wanting to buy one item and every open checkstand has a line six deep at the grocery store, it gives the customer a reason to choose another store next time. Make sure you have enough staff to service your customers properly.

• Follow Up As Promised – During my various positions in the corporate world, it always amazed me at the number of sales reps who did not follow up. They would work really hard to get the initial appointment, but then would never follow up with the pricing or information that they had promised. That’s called dropping the ball, and dropping the profits.

Good customer service comes back to the Golden Rule, slightly rewritten for the business world: Treat your customers as you’d like to be treated when you are the customer!

If you remember the old Aliens movie, they had a great tag line – “In Space No One Can Hear You Scream!” The same can be said for entrepreneurs who are trying to do it all alone. It’s hard to exist in a vacuum. It is much easier to build a successful business if you have a support group of those who understand what you’re going through, and can offer support and advice to help you along the way.

One of the great resources that is available is called SCORE, “Counselors to America’s Small Business.” This is a nonprofit association dedicated to educating entrepreneurs and the formation, growth and success of small business nationwide. SCORE is a resource partner with the U.S. Small Business Administration (SBA). SCORE is headquartered in Herndon, VA and Washington, DC and has 370 chapters throughout the United States and its territories, with 11,200 volunteers nationwide. Both working and retired executives and business owners donate time and expertise as business counselors. SCORE was founded in 1964. They are America’s premier source of free and confidential small business advice for entrepreneurs. You’ll find them at http://www.SCORE.org.

It’s also wise to get involved in local groups, such as the Young Entrepreneurs Organization or other business TIPS groups and the Chamber of Commerce. Through these meetings and events, you’ll meet other business people who can share their knowledge and experience on common challenges you have in building a new business.

An excellent way to build your reputation and awareness of your business is to become ‘the expert’ in your field. When you’re watching television and reading articles in the paper, often you’ll see that they contact the same ‘experts’ over and over again. The truth behind the scenes is that most of these experts in their field set out at some point to become known as the ‘expert’. You can do the same with a little effort, which will set your business apart as the front-runner who is the expert in the field.
Some steps you can take to become the ‘expert’ in your field include the following:

• Write A Blog – By writing blog posts on a regular basis, you help establish yourself as an expert in your industry to those who follow you, as well as to those looking for expertise when they’re searching for information.

• Start a Podcast – It’s easier than ever today to record and publish your own podcast. Focus it on your area of expertise and invite guest on who are leaders in your industry. It’s also a great way to make connections with the movers and shakers of your niche, as you build a following.

• Contact Local TV Shows – Most cities have local morning talk shows that are looking for guests. From arts and crafts to doctors and contractors, these variety/news shows cover a wide range of subjects. Track down the shows’ producer and talk to them about what topics you could be informative about.

• Contact Local Newspapers – When stories break, local writers look to experts to give perspective and insights to their stories. To get on their list of contacts, find the reporter who typically writes stories about your area. Most newspaper reporters have ‘beats’ that they cover, like the business reporter, the crime reporter, the education reporter, etc.

• Press Releases – A consistent flow of press releases from your business will help build your top of mind awareness. Send the press releases to the local media.

• Join ‘Expert’ Lists – The national newswire services have networks of professionals in each area of expertise that can be accessed by journalists when they’re working on a story. Check with www.PRNewswire.com, which operates ProfNet, a service that makes those connections with experts.

Once your business is up and running, it’s time to start all over again. Do I mean that you need to sell that business and start a new one? Of course not, this baby is your pride and joy. You need to look at your business with a new set of eyes, like an outsider, to analyze it and find new streams of revenue. Often just a twist to your current business can create a whole new source of income. Let’s look at some samples to see how a business might rethink their revenue:

• You Opened A Restaurant: With a restaurant, you have a kitchen and food service knowledge. A natural extension would be to start offering catering services. Another option is to market your signature item through grocery stores, like your Barbeque Sauce or a popular soup. This will extend your brand and introduce it to other potential customers who may not have heard of your restaurant before.

• You Started A House Cleaning Service – Since you’re already going into homes and doing a major chore for them that they don’t want to do themselves or don’t have time to do themselves, why not expand and offer to do other homeowner related chores? A natural extension would be handyman services. All those little fix-it jobs that need done could be handled by the company they trust to clean their house.

• You Opened A Martial Arts School – Most martial arts schools have a large open space where classes are held, with classes scheduled in the late afternoon and evening after school and work hours when their students are available. That leaves the space empty and unused during the day. This leaves an opportunity to create programs for housewifes, young mothers or seniors who are available during the day. Perhaps a Yoga class, or Jazzercize, or a toddler play gym could be a profitable use of the available space.