What are the steps involved in starting any new business?
What are the steps involved in starting any new business by an unexperienced person? What factors should be considered? What are the basic (and more specific) steps involved? Is it necessary to have prior working experience in the business/industry you're about to start a business in?
I suppose you are asking for yourself, and your questions tell me that you are generally inexperienced (fresh from university). I would strongly advise you to delay going into your own business immediately, rather pursue a career within some interesting corporation, it will give you possibility to grow business wise, to see internal processes, experience failures, and learn from others. You will also get valuable professional connections that can help you later in starting up your own business. You will also be able to profile yourself in the field you are interested in through work, which is quite.
As a new grad with great talents, I would suggest that you work in a Company or do contract work in your field to gain different experiences. While you are working you can develop the areas you are passionate about and do your homework as to what type of business you could start that solves a problem for your potential customers and aligns with your passion.
Once you have a couple of years experience it should clarify the type of business you could run. From there it would be best if you could start your business part time and then develop it into a full time business.
Before you start your business, take the time to do a full business plan. While you may not execute this business plan in full, it will give you an idea as to whether you have the foundation for a great business without any capital outlay.
Most entrepreneurs will tell you that having your own business is a tremendous amount of work and in the early years there is not always great financial reward
(think Steve Jobs), so you need to be well prepared.
I would add that you need to test your idea. I personally recommend "The Lean Startup" by Eric Ries. It basically helps you boil your idea down to an MVP (minimum viable product), which you then test in the market, and then change based on the feedback you receive. It's great because you can do so much of your testing for free.
Look at Zappos, they tested their product by simply asking stores if they could sell their shoes, taking pictures of them, and putting them online. They had no inventory to start... Once paid, the founder, Nick Swinmurn, went back to the store, bought the shoes, and shipped them. That validated his idea.
I would also network. Not just on sites like MosasicHub and Linkedin but in person as well. I'd hop on eventbrite and meetup to try to find networking events near you, and join local groups on Linkedin. People are incredibly willing to provide free help and information.
First step as far as I am concerned you would need to have lot's of experience and a very compelling reason to start a business. Much passion as well as experience and hopefully some relationships that can become clients sooner rather than later. I would also attain a professional assessment adminstered by a professional Industrial Organizational assessment firm taht would identify your management style, personal strengths and weaknesses, what motivating factors exist, basically what you would be good at as well as not. The reason I suggest this is because through this measurement process you will discover much about yourself vs your own perception and what others perceive about you. I would NOT consider any Myers Briggs as this personality assessment will not get you where you need to be. An OPQ32 and Wave will be best.
The next matter is building a very large cash reserve. You will need at least a years worth of personal survival money held liquid as well as lots of cash in reserve for your business. Plan on another year of reserve for that as well.
If you chose to move ahead in a business that you are inexperienced in, it is extremely important to have the large cash reserves that will help buffer the learning process as well.
Once you decide to move ahead you will need to file for a tax ID #, hire a CPA and engage an atty. to help you establish the correct business entity for your business. You can do that yourself, but it is best to start off with a good team that understands your business. Different entities are available based on many factors. If you would be considering some form of business that has a professional designation, then liability would be a concern, hence and LLC and possibly filing as an S corp. might make sense. Other liability and asset protection steps would also be required as well.
If you are married with children, then lot's of extra insurance protections would make sense. There is so much to address, but without all of the information, can't address all of it in this medium. Lastly, your best survival chances are enhanced greatly by attaining lot's of business experience that addresses HR, sales, marketing, management, culture building, basic psychology, cash management, basic accounting and business law are the starting points.
Better to learn on someone else's dime than yours.
First thing is to study the market you want to enter.
Prior experience is better for sure. Mainly if you need to be a reference in your branch. People has to trust you before to make business with you.
There are different types of business structures (corporate, LLC, etc.) and you should investigate which form best suits the type of business you are planning to create. I would then think through how customers (clients) contact you. Do you need an office and phone/fax or will you just use a website and only work through the internet. You can check online to see if your "business" name is already being used by someone else, buy business cards and stationary, set-up a phone answering/forwarding service and even find a web designer if needed. After all the legwork, I would be sure to hire an accountant BEFORE the end of the year so you can get tax strategy advice and have enough time to utilize the suggestions offered. It's your business and the ethical and moral tone is up to you. You must be clear as to who you are and who you personally want to stay being as a person. You may or may not need the services of an attorney and here, as above, there are many initial free consultations offered via the internet. Don't be afraid to start. Keep your goal in mind and persevere. Ignorance is not stupidity. Ask questions. The only dumb question is the one that's not asked.
I would recommend getting some work experience in the field you're thinking about starting a business in; prior to starting my business I worked 15 years in the energy efficiency sector. The first step to starting a business is creating a business plan; your plan should address the following environments: microenvironment, competitive environment, environmental analysis. In addition, you should research business laws and regulations. I hope this helps and good luck.
I think you need to be able to explain what calls you to it. Define what your values are in relationship to what you'll be offering. Then develop a business plan that explains what actions you'll take over the course of the next year to get the business off the ground. It'd also be helpful if you define who you are looking for as a client.
1. Brainstorm on 5-10 ideas along two parameters 1) your previous experience to solve a problem 2) you knowledge about an idea/ concept or a gap which you think is required by a client
2. Cut down to 2-3 based on multiple market research criteria a) market size b) addressable value c) capability to deliver d) grow and sustain e) competition
3. Choose 1 idea to start by defining 1) What is means to your clients 2) What it means to you 3) What are the levers to sustain / failure of the idea
4. Develop a simple business plan - Who are your customers, what is the problem what is the gap or value from the business, where does your business fit in the value chain and what the key financial indicator of success/break-even sales
5. Research on the type of entity and regulatory requirement of your country
6. Test you market by piloting a first sale or first customer in your location
7. Finally, if all goes as planned, make a plan to seek sources of funds and partners to grow
Hope these points help you to establish a start-up venture
First, I'd consult with a business attorney. They can walk you through each step and make sure everything is done legally, so there are no repercussions afterwards. Consider the funds you have available for start-up, and if that will be enough to 1) sustain the business until it becomes profitable and 2) if it's enough to sustain your lifestyle until you can draw a salary. You may or may not need experience in the industry in which you're looking to start your business- it depends on the business! Either way, I'd seek out a mentor who can provide guidance and advice as you go through your journey. This is an exciting and scary experience all at once- best of luck to you!
Dear Faisal ,
I have read your profile , and i would not recommend you to start your own business without experience ,
I had a chat with my friends in Pakistan , and i might have a job for you .
Kindly email me you (CV) if interested .
You seem to be talking about yourself, a fresh graduate, I salute you for your ambitions, but wise conduct is essential:
1- to succeed in anything you do, do something you love; get hired by a firm in the field you see interesting to you
2- it's not wrong to switch companies for a while, this will give you more insight on how things work in real life
3- research and research more, study what you want to do, why you want to do it, and most importantly, the "sellability" of what you're planning to provide
4- funding options, it this point you must have prepared a very detailed business plan backed up with a realistic feasibility study; this is important even if you're funding by your own money
5- after you actually open your start up, go low-profile, don't look bigger than your size, you're fresh, new, clientless; go by baby-steps till you build experience and a clients list (your references), so when you go for a bigger fish, you have the experience, and the references to prove you can do what you say you can do
6- after having a few clients on your list (try to go for names that are known in your network), start making noise (press releases, social media buzzes, etc.)
7- maintain quality, never say something you can't commit yourself to, never say something and do another