How can one set up a startup business?

An idea is the key element of setting up a startup business. Whether your idea is a decent one or a great one, it does not matter until you work on your idea. Having a concrete idea and implementing it in the best possible way is the actual guide to the set up of a startup business.

You must be thinking that getting an idea and just implementing it is a very easy task.

Do you know what all does it take to implement an idea in terms of setting up a startup business?

Before you can implement your idea and successfully set up your startup, there a lot of steps that you should definitely follow. Here are some points that you should keep in mind:

  1. Have a concrete idea- If you have an idea in your mind and want to implement it, then before that make sure that you are well aware of the target audience and the industry that you are willing to enter. It is important to have a understanding of what other businesses are offering in the same field that you want to enter in. This understanding will help you in coming up with a different and unique idea for your startup business. Once you are ready with a concrete idea you can step ahead.
  2. Prepare a business plan- Once the idea is ready, then the focus should be on preparing a business plan. The purpose of a business plan is to get some clear answers to certain questions like: What purpose will my startup business solve? Who will be my target audience? What are the goals that it will achieve? How will the costs of startup be financed? This step is very important as an evidence to the demand of your unique product or service. Thus, a business plan is a written description of your startup’s future.
  3. Determine your finances- Every startup comes with a price. From setting up of the startup to its proper functioning, it has to bear a lot of costs. These costs vary from industry to industry. The business plan also contains the financial plan wherein different types of forecasts are made in terms of finances. It is necessary to maintain this financial plan which includes: balance sheet, sales forecast, profit and loss statement and cash-flow statement. It is important to determine your finances and their source of funding.
  4. Prepare a legal structure of the business- Once the above three steps are taken care of, next one of the most important steps is to determine the kind of entity you are planning to set up. Before getting it registered, you need to figure out the type of entity among these: sole proprietorship, partnership, corporation and limited liability company. You will have to complete this step in order to determine which type of entity would be best as per the current needs and the future goals of your business.
  5. Get your business registered- In order to legally operate your startup business, it is necessary to get it registered. A few documents are to be prepared before you get your business registered: Articles of incorporation and operating agreements, Doing Business As (DBA), Employer Identification Number (EIN), Income tax forms and Federal, State, local licenses and permits.
  6. Set up your physical office and build a website- In order to set up your startup business, you will have to buy or lease a property. Setting up the business in an appropriate location is quite necessary so as to capture the target audience. Apart from this, building a website is also equally important now-a-days as people tend to get information online. You should make sure that people are able to find you online so that you can gain more visibility and target audience.
  7. Build up your team- If you are planning to work in a team of a few people then you will have to recruit and hire people. Working in a team is important so as to ensure smooth and proper functioning of the activities of the startup.
  8. Come up with marketing strategies- Even if you have a unique product or service, it is not necessary that people will purchase it. You will have to make people aware about your products or services. There are various marketing strategies- Digital Marketing, Outbound Marketing and Conventional methods of marketing that you can adopt so as to make your startup succeed.

These steps will help you in launching your startup business and will help it in growing. You can always improvise these steps as there is never a proper plan or way of setting up a business. You can also take external help from an agency or agent in developing your business plan and strategies and also you can seek help in marketing your products or services.

A marketing enthusiast pursuing MBA from Symbiosis Institute of Business Management.