To start a small business, especially in the current conditions of global financial insecurity, requires courage as well as careful planning.
In this article you will learn how to start a successful business in seven easy steps.
Step One: Initial investment Some business writers tend to place market research before initial investment, emphasizing on it as the first step towards starting up a small business.
Keep in mind, however, that finding start-up capital is the cornerstone of every successful business, be it small, medium or large.
It's an urban legend that Rockefeller made his first million selling apples.
Some people say that his uncle had lent him a million dollars for a startup which sounds far more plausible.
Now, if your uncle is not a millionaire, you can just as well go to the local office of your bank and ask their business advisors for start-up packages and solutions.
Of course, you will have to pay some interest on the money, but you may consider it the price of your business success.
Get familiar with the various financing options and the amount of money your lenders are willing to grant.
Of course, you should have at least a general idea of the nature of your business.
Step Two: Market Research Once you find possible sources for a startup capital, it's time to make a thorough market research and business planning.
In general, a good market research boils down to determining who is going to buy the product that you sell, deciding whether there is a niche on the market for your product, and calculating the market price of your product, which is directly related to your production costs.
Your profit is more or less guaranteed if you can make a high-quality product with minimum production costs.
Step Three: Find a Good Lawyer If you are planning to start your own business, you should hire an attorney who is experienced in counseling budding businessmen.
Step Four: Find a Good Accountant Book-keeping can be a daunting experience for a newbie in the business world.
That's why you need a good and experienced accountant to do this for you.
In addition to keeping your books balanced, a good accountant can save you a small fortune preventing some unnecessary expenses.
Remember that the accountant and the attorney are the second most important people in a company after its owner.
Step Five: Choose a Form for Your Business Choosing the form of your business means to decide on whether it will operate as a limited liability, personal liability or a joint stock company.
You'd better consult with your lawyer and your accountant on this issue.
It very much depends on the product or service you will offer.
Step six: Choose a Company Name If you ask what's in a company's name, the answer is EVERYTHING! The company's name is how your business will be known on the market.
Ideally, the name should describe the main activities of your business in a couple of worlds.
Step Seven: Get All the Paperwork Done If you do not want your business to be stillborn, make sure you have all the licenses and permits for the activities of your company; otherwise, the local authorities may punish you with bulky fines and even force your company to close down.