How to Start a Business
If you’re a right-brained creative like me, I gravitate towards the more “glamorous” side of business (marketing and branding), and get support on the analytical side of things (*cough* accounting *cough*). But, you can’t start a business if the “bones” aren’t good. I mean, having the prettiest logo in the world with no business structure is like boarding a sinking ship…it’s not going to go anywhere. That’s why it’s critical to follow all of the steps on how to start a business.
Whether you’re starting from ground zero or you’ve already got your business idea down on paper, here’s the ultimate framework for setting up your business for success:
How to Start a Business: 10 Easy Steps
1. Choose the concept
Your business concept is your North Star—where all your work begins. It should be something you’re passionate about, yet something you can monetize. The best way to find that for yourself? Following the Japanese term called, “Ikagai.” Ikagai is where your passion (what you love), vocation (what you’re good at), your mission (what the world needs) and your profession (what you can get paid to do) all intersect. That’s what you should be creating a business on.
Ask yourself these questions to find your Ikagai:
What do you love to do? Or what did you love pursuing as a kid?
What are you good at? Or what do others tell you you’re good at?
What do you think the world needs more of?
What is a skill you could get paid for?
2. Choose your audience
Now that you’ve nailed down your concept, it’s time to decide who you’re targeting. I recommend starting with some secondary research on your competitors and the local/national market itself to see where there are opportunities (aka a space that isn’t saturated). Here you can conduct a SWOT analysis (strengths, weaknesses, opportunities and threats) to analyze your business and choose an audience that makes sense.
When you’re ready to choose your audience, decide on these demographics:
Age
Location
Income
Profession
Marital/family status
Other interests
Values
3. Create a business plan
A business plan lays the groundwork for your entire business—how it operates, what your values are and how you plan to make money. Not only will creating one set you up for success, but you can refer to it later when making any business decisions (and it’s a great resource for investors and financial institutions to refer to when working with you). Here are the elements you should decide upon when laying out a business plan:
Executive summary: The executive summary gives a general overview of your business and highlights the goals you’re trying to achieve.
Company description: A company description is more descriptive than the executive summary—it provides more detail on exactly what product or service you’re providing and how it solves a problem.
Market analysis: Here you’ll provide a comparison on how your business is positioned against others like it in the market. A market analysis should include your target market, segmentation analysis, market size, growth rate, trends report and a competitive assessment.
Organization and structure: This section describes which business structure you’ll follow, staffing and other HR policies.
Mission, vision and values: I think this section is one of the most important, as all business decisions will follow your mission, vision and values. Your mission is what you’re setting out to do (your “why”), your vision is what the future holds for your business and your values is what you/your business believes in.
Products or services: The products/services portion of your business plan covers the day-to-day operations of your business, the cost of your service or product, source materials, how much they cost to make and more of the nitty-gritty details of your offerings.
Background summary: Your background summary provides insight on the market and your competitors. It’ll feature data and research that gives context to what factors could affect your business in the long run.
Marketing plan: Here you’ll provide more context to your SWOT analysis—especially the competitors portion—and share how you’ll promote your business. You’ll also indicate how much time and money you’ll s[end on your marketing efforts.
Financial plan: Last, but certainly not least, is your financial plan. The financial plan includes a budget with financial statements like income, balance and cash flow.
4. Pick a business structure
Like I foreshadowed a bit earlier in the business plan section, you’ll want to decide what structure your business will follow. Choosing a business structure impacts your taxes and operations, so it’s very important you start out on the right foot. Here are the different types you can choose from:
LLC: LLCs separate you and your business and can be owned by one or more people or companies. They’re one of the most popular (and easiest) business types to set up.
LLP: LLPs, or Limited Liability Partnerships, are used by licensed business professionals, like attorneys. They require a partnership that actively takes part in your business and requires a signed partnership agreement to do so.
Sole Proprietorship: Sole proprietorships are for the solo-preneurs that going into business all on their own. However, unlike a LLC, you and your business are one in the same, so you’ll be personally liable for business debts.
Corporation: Corporations are very similar to a LLC since they limit personal liability, but they’re usually reserved for larger and higher-earning businesses.
5. Register your business
After you choose your business structure, there are a few legal items you need to check off your to-do list:
Choose your official business name: Make sure it’s not already a registered company in your state under the United States Patent and Trademark Office (USPTO).
Register your business: Fill out the official forms of your business structure with the Secretary of State. You’ll also want to apply for an employer identification number (EIN) for tax purposes.
Set up any licenses or permits: Check with your local government office to determine if you legally need any licenses or permits to perform your business.
6. Set up your finances
While setting the groundwork for the financials of your business isn’t glamorous by any means, it’s necessary. First, you’ll want to set up a business bank account with your business name and tax identification number (EIN) for purchases and invoices. And if you’re like me and want to outsource your bookkeeping, now’s a good time to find an accountant to keep track of your finances. I also recommend finding a financial advisor you can trust to help guide you through the financial steps of starting a business.
7. Find funding
Starting from scratch with your finances can be a challenge for a lot of business owners. That’s where funding can be a huge help if you need an extra boost to start off with. You can try getting grants, crowdfunding, loans and working with investors to get your feet off the ground. And if you’re fortunate enough, you could use your personal savings, credit cards and donations to fund your business as well.
8. Get the resources you need
Personally, I think it’s easier to begin with strong processes and systems sooner rather than later. That way, when you’re busy in your business, you have your habits and systems underway and you can focus on your customers or clients—instead of learning a new software. Investing in equipment can provide you with the tools you need to work more efficiently and effectively. Also, if you have the resources or need the extra hands and expertise, consider outsourcing or hiring team members.
9. Begin marketing plan
Now that you’ve spent so much time and effort perfecting your business structure and nailing down your business plan, it’s time to have a little fun with marketing. Here you can unleash your creativity and show the world what you’re offering (and thankfully, since I know you are all creatives here, you’ll be able to save some extra money by creating your own marketing assets and content). Here are a few marketing essentials that you should cover:
Develop a website: First and foremost, every business needs a website. Thankfully, you don’t need a web developer to build one. Use a third-party site, like Wordpress, Squarespace or Shopify, to start.
Optimize content and website for SEO: Before you hit publish on your site, you’ll want to optimize for SEO keywords and questions people have around your business (People Also Ask or PPA). That way, people can find your business on search pages like Google. SEO should be something you continually work on, especially if you have a blog on your website.
Create social media and online content: Content creation is much easier to prioritize and get a head start on before launching your business. Set aside time for a brand photoshoot, filming and shooting social media content for your channels and creating long-form written and video content that’s relevant to your business.
Implement social strategy: While it’s tempting to start posting right away (especially after snagging some amazing photos from your brand photoshoot), you’ll want to first sit down and think about how you’ll show up on social media. Make sure your strategy strikes the balance between building community, providing value to your followers and following trends or hot topics. To me, the key to success on social is a mix of all three.
Identify and work on other marketing avenues: Your marketing efforts don’t need to stop here. Depending on what you’re offering, you may want to consider tapping into these strategies as well: email campaigns, public relations, branded content, advertising and events.
10. Launch!
Last, but certainly not least, it’s time to celebrate the launch of your new business. As you’ve been ramping up your marketing efforts, make sure to promote the launch as much as possible across all your platforms the weeks leading up to the launch date. If you want to go the extra mile, throw yourself a launch party. You deserve it after all your hard work!
If you’re looking for more inspiration from real-life entreprenuers, listen to my podcast episode with Gaia Rialti from Menaboh and Gabs Mastronardo from Maia Conscious Living on how to start a business. They cover everything—from building a team to developing your brand’s purpose. Listen on Spotify or Apple Podcasts!
