subject: Steps in Starting Up a Business [print this page] Steps in Starting Up a Business Steps in Starting Up a Business
Starting up a business can be a difficult process. There is much to think about and it is important that you get things right. This article details some of the aspects that those looking to start a business need to consider.
The Basics and a Business Plan
The first step is obvious but not necessarily simple; decide what the business is. You need to decide which products or services you will be providing and the basic processes of the business. Deciding on the target market is important, whether it be local, national or international. You have to make sure there is a potential market for this type of business and therefore a potential customer base. There is no point targeting just the local area if most of your customers are likely to be in America, while it is a waste of resource to target a global market if what you provide is only relevant within the local area or within the country.
A business plan is an important part of any business. It will be required if applying for loans or investment, but is also a useful tool in figuring out your particular plans and how different aspects of running your business will fit together. A number of areas should be covered in a business plan. You need to analyse the market and the competition. Looking at the competition allows you to see the positives of how they operate, and could therefore give you ideas, while you will also be able to discover areas where you may have an advantage. Looking at a combination of the market and competition will give you an idea of whether or not your business is viable. If the market is too small then the opportunities for profit will be limited while if there is a large amount of competition the market may already be over saturated. One of the most important areas of the business plan is forming a financial plan. For this you need to decide upon how much you will charge and how much you realistically think you can sell. You will then be able to work out a projected year-on-year turnover.
Legal Issues
You need to set up the legal structure of the business. Depending on the type of business there will be a number of different legal issues. For some health and safety will be a major part (for example a building related business) while for others it will only be a small consideration. As well as the legal aspects related to the type of business you also need to decide on the type of business you will be, for example a sole trader or a limited company. There are then legalities related so these regarding a number of issues.
Business Premises
The premises that you will work from needs to be established. Firstly you must decide what is necessary and appropriate. If manufacturing is involved you may need a factory but it may just be an office that is required. If this is the case working from home may be an option. Once you know what you need you have to think about location and price to help you decide on the best premises.
Tax
Dealing with tax is not everyone's idea of fun but it something that needs to be done. Most businesses hire an accountant for this which could simplify things but it is more expensive. Getting this right is crucial though, with things such as corporation tax, VAT, and Tax Returns to deal with.
Employees
Before starting a business you need to work out your requirement for employees. What do you need people for and how many do you need? Once you have employed people you need to go through the legal processes which include the setting up of contracts, deciding on wages and making sure you adhere to employment regulations. Moving forwards there is employee tax and payroll to take care of.
Marketing
Marketing is crucial for all businesses. Brining in customers is the most important part of a business as without them it is impossible to make a profit. You need to form a marketing strategy and decide on how you are going to advertise. You will probably decide that you need a website. This is a good way of generating business as it is a way of customers who are interested in the products or service you offer finding you. With a website you will need to decide on web hosting, with many different business hosting options available. You may then want to invest in SEO, which will help your website to appear higher in the search engines and therefore improve the chances of your website working as a marketing tool. As well as online marketing you will need to decide which off-line advertising techniques you wish to use. Some business owners will decide that one particular type of advertising is best to focus on while others will use a variety.
IT
IT is an increasingly important part of businesses of all type; it is no longer just computer related businesses that need IT. The specific type of IT systems required depends on each individual business. Some will take care of their IT in-house while others will hire someone for their business IT support.
There are many issues to think about for start-up businesses. It is a complicated process with many aspects important to get right to put you in a position to form a successful business for the future.
