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How to Start Your Own Small Business

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StrategyDriven Starting Your Business Article |Small Business|How to Start Your Own Small BusinessIf you have dreamed about being an entrepreneur and starting your own small business, the process may be easier than you imagined. Since you are not opening a large or medium business, the steps to create your business are much more manageable. You do not have to deal with stock, public trading, large demands for capital, or complex tax or legal issues. Here is what you need to know about taking on this endeavor.

Steps to Starting Your Own Small Business

You can quickly launch your business after completing these steps:

Business Planning

Every business should have a business plan. This is the foundation of your request for outside funding. However, even if you do not require funding from a bank or other financial institution, a business plan can be helpful in creating a roadmap on how to operate and grow your business.

Funding Your Business

You may need some initial capital to start your small business, such as to pay for inventory, equipment, staff, and other needs. You may have several options to fund your business, such as:

  • Using personal funds
  • Asking friends and family to invest
  • Using crowdfunding
  • Borrowing from a bank or other financial institution
  • Seeking out investors

You will want to consider the funds you need to initially start your business, as well as your capital needs for the future. You don’t want to make an initial ask for funds and then have to return to ask for more shortly later.

Pick a Business Location

The location you choose for your business can have a dramatic impact on the potential success – or lack thereof – of your business. The business location you choose can affect your revenue, legal requirements, and taxes. Additionally, if you choose a bad location that is associated with past problems or legal issues, this can negatively impact the community’s perception of your business.

Use appropriate tools to get an address report about locations that you are considering. This can help you to be informed about the location and any potential issues with it.

Select Your Business Structure

The legal structure you select for your business will impact important aspects of your business, including requirements on how to register your business, your potential personal liability, and the amount you pay in taxes. Common types of legal structures for small businesses include:

  • Sole proprietorship – This is the simplest structure to have and if you do not choose any other structure, this will be the default classification for your business. With a sole proprietorship, you do not have any protection from personal liability and your business income is taxed at your individual rate.
  • Partnership – A partnership involves two or more people who are in business together. It is possible to limit personal liability with certain types of partnerships.
  • Limited liability company – A limited liability company has the same types of legal protections as a corporation but provides tax benefits of a partnership.
  • Corporation – A corporation is a separate legal entity from the individual owners. It can own property, pay taxes, enter into contracts, assume liability, and make and defend against legal claims in its own name. Corporations provide protection against personal liability.

You will want to choose the business structure that best suits the needs of your business, now and in the future.

Register Your Business

You will want to register your business to make it legal and to establish a brand for it. You will likely need to register with the government, potentially with the federal, state, and local government. Corporations must file articles of incorporation that identify the business name, its purpose, the legal structure, and other pertinent information.

If you hire employees, you will need an Employer Identification Number.

Acquire Legal Permits and Licenses

You may also be required to obtain various legal permits and licenses to legally operate your business. These vary by your state, location, industry, and other factors. Some trades require you to maintain a professional license. You may also need a permit before you collect sales tax from customers.

Purchase Insurance

Keep yourself protected by purchasing a general business insurance policy. You may also inquire about other types of insurance that may be able to protect you, such as errors and omissions insurance. A competent insurance broker should be able to inform you of your options.

Seek Out Additional Resources

Fortunately, there are many places that you can turn to for assistance and information. The Small Business Administration offers a wealth of information, including many free resources. Many states also have other organizations that provide assistance to small businesses and can help with everything from market research to financial planning. You can also check with the agency where you must register your business for additional assistance.

Conclusion

By following the steps above, you can soon be on your way to starting your own small business and becoming your own boss. Good luck!

About the Author

StrategyDriven Expert Contributor | Ben HartwigBen is a Web Operations Executive at InfoTracer who takes a wide view from the whole system. He authors guides by sharing the best practices and does it the right way!

Start Your Own Business Online

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StrategyDriven Starting Your Business Article | Start Your Own Business Online

To be or not to be is not a question anymore.

Either you “be” on digital platforms or prepare for the closure of your venture.

Running an online business is the need of the hour. Given how a pandemic could shake the entire corporate world’s roots, we can no longer be sure of what comes next. Online business is the safest option to ensure financial security.

The best part?

It gives you the freedom to make money from anywhere in the world. It doesn’t always have to be a tangible product. You can even sell your skills, talent, and educational expertise online. According to Fundera statistics, global ecommerce sales might hit $4.8 trillion by 2021. As for providing services over the Internet, those numbers are on the rise too.

Don’t fret if you are one of the noobs. You can follow a proven set of steps to ensure success when initiating in the online business world.

Here is how it goes:

Find a need and fulfill it

Most people start by looking at a product they are strong at. Instead of analyzing the market, their aim is to come up with a flawless product structure.

Remember, you need to solve a specific problem faced by the people. Plus, ensure there are potential customers for it. Look at how your idea could help people differently.

For example, Google improved the online search process. Netflix provides on-demand streaming media, and Uber is trying to improve the on-demand car service. Although your product or service may not be a must-have, you could still find a way to repurpose it and resolve a dire need.

The Dropbox co-founder Drew Houston speaks highly of such entrepreneurs when he says that the happiest and most successful people he knows don’t just love what they do; they’re obsessed with solving a significant problem, something that matters to them.

Passion, coupled with innovative problem-solving, could beat all obstacles blocking your digital journey!

Write a stellar copy

It doesn’t matter if you have a food business, a construction company, or even a photography studio. Every venture needs and compelling copy to make the desired mark upon its prospects. A good composition will motivate, encourage, and convince your audience to interact with your business.

Essentially, a copy refers to the marketing text found on leaflets, flyers, and billboards. In the case of an online business, it is the content found on your website aiming to understand the emotional impetus behind any purchase. There is also smaller stuff like social media posts and product descriptions, which require incredible copywriting.

Hence, it is imperative to invest in a good copywriter to improve your overall brand image. Your customers won’t consider the magnitude of your operations when going through your website. It is how you string your professional insight into compelling words that can leave a lasting impact on them.

This is one reason why 64% of the B2B marketers outsource their demanding copy needs.

Unlike other paid marketing campaigns, a good copy will continue to promote your online business for a prolonged time.

Use search engines to drive traffic

Online visitors today are using search engines more than ever before. According to the Internet Live Stats, Google processes 40 000 search queries every second on average. This translates to 3.5 million searches per day.

Considering the intense competition online, new business owners must implement a scalable search engine strategy.

Working on SEO and SEM could be your best shot. SEO is a powerful way to drive evergreen traffic atop the funnel. Meanwhile, SEM refers to using paid advertisements that pop up on the search engine results page. Advertisers bid on the keywords entered by the users of Bing or Google when looking for a specific product/service.

Ideally, seeking assistance from local SEO specialists could be your first step when starting your online business covering a certain vicinity. For example, you could get help from a Seattle SEO expert to devise your online marketing campaign if you are a startup in Seattle.

They could help you gain insight into optimizing your website or starting a pay-per-click advertising campaign. The former involves attracting organic traffic to your portal. Meanwhile, the latter (PPC) consists of showing ads instantly on the search engine’s first page. Besides getting you an instant traffic flow, PPC ads will allow you to discover your best and highest converting keywords.

Verdict – Stay in the information loop to maintain relevance

One of the main ingredients to ensure your success in virtual paradigms is – constant upgrading.

If you are planning to kickstart an online business, make sure it fits the current trends. From website design to customer satisfaction – everything has to fall in line with the industrial standards. Each time you feel like you’re drawing apart from the prevalent ideas, work hard to up your game.

We hope you’ll sneak up the search grid and stay there!

About the Author

Evie Harrison is a blogger by choice. She loves to discover the world around her. She likes to share her discoveries, experiences and express herself through her blogs.

Find her on Twitter:@iamevieharrison. Learn more about Evie at about.me/iamevieharrison.

Starting A Small Construction Business

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Being handy with tools can provide more benefits than simply keeping your home in good repair. Using your skills and experience to develop your own construction business can provide a source of income that allows you to be your own boss and set your own hours. Even though your future business is small, it requires careful planning and organization to increase the chances of success. Like other types of small businesses, small construction companies must follow regulations and work hard to earn a customer’s trust.

StrategyDriven Starting Your Business Article | Starting A Small Construction Business

Plan well

Write a plan for your business. Known as a business plan, this written document provides a roadmap to get your business started. Include your goals and outline the methods you will use to achieve those goals. It includes sections that deal with the financial aspects of your business, the intended clientele, the necessary tools, the equipment, and supplies, as well as the advertising plans. Print your business plan on paper to present it formally.

Apply for a loan to obtain any necessary financing for your new company. Take your formal business plan with you to present to the banker. Talk about your reasons for starting a construction business, including why you think you will be successful. Talk about your loan options, including interest rates and terms.

Check regulations

You may need to be part of a union, so look for information on how to acquire a construction license or membership. Look for services in your area, how to apply for a business license, register your business name, and pay licensing and certification fees. Request a company identification number through the Internal Revenue Service. Contact a surety company to request one.

Take an inventory of tools and equipment. Bring any tools or equipment you have to repair, in case they need it. Buy the items you need to complete basic construction tasks, such as ladders, saws, carpenters’ levels, drills, and bits. Do you need any specialist tools and products, such as ptfe tubing or corrugated pipes?

Advertise your new construction company in various media to attract customers. Advertise discounts to your first customers in a business. Notify your friends, neighbors, and family of your new company. Ask them to spread the word to their friends and co-workers. Personal recommendations can encourage homeowners to go inside their homes for construction work. It would help if you came up with a strategy on how to advertise your construction company. You may want to start a website that contains information about your company and how different they are from other contractors. You can also use traditional advertising methods such as printing business cards, flyers, and brochures – make sure you include a reference to your website.

Starting a construction business can be profitable and exciting, but it does take work. The risk of failure can be carefully minimized by considering a). where you will receive funds b). what you will do when accidents occur c). who you will hire to help you d). how you will bid on projects, and e) how to find your customers.

How Startup Owners Can Reduce The Risk Of Business Failure

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StrategyDriven Starting Your Business Article | How Startup Owners Can Reduce The Risk Of Business Failure | Business Startup

According to the research highlighted at Fundera, 20% of new businesses fail in their first year, 30% fail in their second year, and 50% fail after five years. It’s enough to put anybody off the idea of starting their own business.

However, it’s also important to turn those figures around. While there are those businesses that fail, there are also those that survive. This should be a cause for optimism.

To reduce the risk of business failure, startup owners should:

#1: Find out why businesses fail

Why do businesses fail? According to Research Briefs, there are many reasons. 42% of businesses fail because there is no market need for what they are selling, according to figures highlighted. 29% of businesses fail because of cashflow problems. And businesses also fail because of such issues as the might of the competition, poor marketing, and the lack of a proper business model.

When the startup owner knows why businesses risk failure, they can take steps to alleviate any future problems.

So, they might look for a niche in the market in a bid to reduce the competition, for example. They might outsource their marketing to those agencies that understand their business model, such as a software marketing agency if they were running an SAAS business. And they might commit to market research before starting out to ascertain whether or not there is a market for their particular product or service.

#2: Seek assistance from a business mentor

The business world is hard for anybody, especially those who are just starting out in their particular industry. This is why it’s always useful to have somebody on speed dial who knows what they are doing. A mentor can help the startup owner become a success, with advice on the pitfalls to look out for, a list of contacts with the resources the startup owner needs, and other information, such as tips on hiring, financial management, and goal setting.

Of course, this is assuming the startup owner knows somebody who can mentor them, although it shouldn’t be too hard to track somebody down. Networking events, social media sites, and small business development centers are just a few of the places where somebody might find the help they are looking for.

#3: Improve their skills

The startup owner doesn’t have to be the master of everything. They can hire staff members to take on some of those tasks that they can’t do alone, and they can outsource too.

However, there are the basics to consider, as skills in such areas as management, leadership, and communication could be considered the bare essentials when trying to run a successful business. To learn more, the startup owner should consider a business course or any other line of study and training that enhances areas they are weakest in.

With a good foundation of knowledge at the beginning, they will be less likely to make many mistakes down the line.

So, take heed if you’re a startup owner, but be assured that failure doesn’t have to be an inevitability. You can override the risks involved, so consider our suggestions, and get help from other sources if needed.

 

Saving Money As A Startup – Ways To Increase Your Margins

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Launching a business is never a walk in the park, not least during a pandemic when the future is uncertain. Despite economic concerns, there are advantages to setting up a startup at the moment. The Covid-19 crisis has caused widespread disruption, but it has also created opportunities. If you’re just starting out on your entrepreneurial journey, it’s crucial to keep a close eye on the books. In this guide, we’ll explore ways to save money and increase your margins.

StrategyDriven Starting Your Business Article | Saving Money As A Startup - Ways To Increase Your MarginsInvesting in technology to improve efficiency

Increasing efficiency in business is often an effective means of saving time and money. Technology has become increasingly critical for businesses in recent years, and it offers company bosses the chance to streamline and speed up operations, reduce the risk of errors and introduce cost-effective ways of working. If you’re thinking about investing in technology for your startup, undertake extensive research, keep track of what your competitors are doing and look for devices, machinery, software or equipment that will enable you to work faster, provide a better service, offer a more diverse range of products or services than your rivals and lower costs. Think about what your business needs and consider hiring or buying second-hand equipment to save money. Hiring makes financial sense for short-term projects, while buying used machinery can work out a lot cheaper than buying brand new models. Whether you’re looking into water cooled chillers, construction vehicles, coffee machines or computers, it’s advantageous to explore the options on the table, compare prices and analyze the impact of your investment. Search for value for money, rather than the lowest price, and choose reputable manufacturers and trustworthy retailers.

Flexible staffing options

For many fledgling businesses, paying wages accounts for a substantial portion of the monthly budget. The majority of businesses need to employ staff, but there are alternatives to hiring employees on permanent contracts. You may find that flexible options work better for you, especially if you run a seasonal business, or you take on multiple projects. If you run a construction company, for example, you may want to look for talented individuals to work on specific jobs, rather than employing a team of workers on a full-time basis. If you manage a store that sells Christmas decorations, or you run a business that handles vacation rentals, for example, you will go through busy and quiet periods, which demand different staffing levels. Hiring on a short-term basis will ensure you have access to the staff you need to thrive during busy periods while saving money when sales start to dwindle. You can also save money on wages by starting with a relatively small team and adding new recruits as your business grows.

Another option to consider is whether you could hire a student to support your business? Students will cost your business less to employ but in some cases can do the job just as you require. Many will be looking for a job to support their degree, so if your business is within that field, then their knowledge could be invaluable. Plus, when you hire a student, you could use their student ID when buying their equipment to save some money. If you require them to travel, student ID’s will help reduce the train fair or bus fair depending on who they travel with.

Outsourcing

Outsourcing has become increasingly popular among small and medium-sized businesses, and it can offer a cost-effective alternative to employing new members of staff. Outsourcing involves working with external agencies or hiring freelancers to take control of certain jobs. It enables you to access skills that you might not already have on your team, and you can also free up time for your employees. Examples of tasks and services that businesses commonly outsource include professional cleaning, accounting and payroll management, IT and marketing. If you own a clothing brand, for example, and you want to drum up interest and try and boost online sales, you could outsource marketing, joining forces with a digital marketing agency to draw up and manage targeted campaigns that are designed to increase sales and improve your ROI. By outsourcing, you can save money on hiring while also benefiting from access to expertise you don’t have in-house.

Negotiating with suppliers

Negotiating skills are imperative in business. Whether you sell products or services, it’s highly likely that you will need to engage with suppliers, distributors and logistics firms to get your business off the ground and provide your customers with an efficient service. At every stage, be willing to negotiate on price, but understand the importance of presenting a professional image. There’s nothing wrong with trying to drive prices down, but be realistic and make offers that are reasonable.

Streamlining your marketing strategy

Marketing plays a crucial role in helping businesses to connect with customers, generate leads and increase the chances of making sales. When you launch a marketing campaign, you want to ensure that you have the best chance of achieving your objectives. This is why it’s beneficial to seek expert advice and to link up with agencies or individuals with an outstanding track record. There is a risk of a campaign falling flat, and not every marketing strategy works. You don’t want to invest money in techniques that don’t work or campaigns that don’t reach the right people. Streamlining your strategy can help you pinpoint target customers, generate high-quality leads and promote your brand in the best possible light. Make use of analytics to track progress and use market research and customer feedback to improve and modify your strategy. If you’re targeting young people, for example, advertising and sharing posts on sites like Instagram is going to be more effective than posting on Twitter. If you’re setting up a local business providing services like roofing, dog walking or gardening and landscaping, focus on local SEO and use flyers and local press adverts to connect with residents in the area. Over 85% of people who search for local businesses on a smartphone will either make contact or visit within 24 hours. By focusing on methods that work, you can increase ROI and eliminate expenses related to techniques that have failed to make an impact.


Every dollar counts when you’re running a new business. If you’ve recently launched a startup, or you’re in the early stages, there are ways to lower costs and increase margins. Think carefully about your recruitment strategy and explore flexible staffing solutions, negotiate with suppliers, invest in technology that will enable you to save time and money, consider outsourcing and streamline your marketing strategy. If you can reduce expenses at the same time as driving sales and optimizing performance, your profits should grow quickly.