How to Start a Business in Seven Steps or Less ... No Nonsense
Posted: Monday, June 20, 2011
by Sydney Spence
Step 1 – "W4H" Section
Now, this may seem pretty elementary but I used it to show my 14 year old (then 12) how to start her own business and it helped her learn the basics. Others have gone on to start their own business just by starting with these basic steps. We learn these basics in elementary but, apply them to your business start up now. This can also be applied to starting a non-profit organization. The only difference being the tax status which is covered later.
Who? What? When? Where? How?
• Who is your target audience? Who are you going to sell your product or service TO?
• What is your product or service? What will you sell? What service or product will you market?
• When are you going to market? When will you sell your service or product? (Meaning will your product be seasonal, all year round, etc)
• Where are you going to sell your product or service? Where will you market your product or service?
• How will your customer receive your product or service? How will you maintain your customer base?
These are basic questions to get your started but once you’ve answered these questions, you’ll find it easier to create your business plan. Not only that, you now have it in black and white, you’ll be motivated to follow it through. Hang a copy on your fridge and remind yourself everyday what you are doing this for.
Step 2 – "Choose a Business Name" Section
Choose a business name. Get your notebook out and jot down a few names before finalizing on “the one”. You can also take votes throughout your family and friends to see what they think. Come up with about five business names, throw in some snacks, invite everyone to vote, and there you have a good time PLUS a tax write-off!
It’s also a great way to start the word of mouth process that you’re starting a business.
I recommend two things here, first, go to your local County Clerks office to look up the name you want to use and to make sure no one else is using the name. If you choose to, you can purchase the business name.
In Texas, for example the fee is somewhere around $18. That’s a one time fee that just ensures no one else can conduct business under the name you have registered.
Second, or rather at the same time as coming up with the business name, look it up online. Google it with your city and state to see if it comes up in your area, and then also see if it’s available as a domain name. That’s going to be your website name.
For example ~ if my business name were Sniper, this would be a perfect domain name. When choosing your business name, I recommend not settling on the first one that comes to mind. After all, it’s like naming your child; it’ll be around for a very long time. Your business is your baby.
Once you finalize your business name, that’s it, there is no going back. :) Not to sound too serious. Just make sure you really want that business name.
Because Uncle Sam Wants His Cut
Step 3 – "Taxes" Section
Keep in mind, I am no attorney or accountant. This is all information you can find online and through your local agencies.
Determine how you are going to pay your taxes. Here’s a tidbit, no matter how you file your taxes, there are tax breaks out there for everyone. Even if you have an EIN (social security # for your business) you’ll still have to report all of your total income. I’m not a tax specialist so make sure to visit the IRS website and click on small business. Who better to get answers from than the IRS?
Call their toll-free number and ask any questions you have. Their agents can be quite helpful and kind. Keep in mind the person on the other end of the line is simply someone taking calls in the call center. They do not regulate the “law” that you are required to pay taxes.
HOMEWORK:Research the tax bracket you will be in upon starting your business.
Also, on the IRS site you can determine your tax status. For example, if you are interested in starting a non-profit you want to follow the IRS guidelines in obtaining an EIN # which you’ll have to have in order to apply for 501 (c) statuses. If you intend on hiring employees someday there are tax rules for that too! At that point you’ll want to hire accountant. I always try to use small business owners for all the services I need, but that’s at your discretion. Keep in mind that you’ll want someone to use your small business too.
Step 4 – "Website" Section
Choose your website name and get a site built right away. Don’t freak out, this is very simple and not expensive to begin with. Even if you are only going to use the site so people can find where you are located, your phone number or more about your products, it’s a good idea to have a website. For instance, if someone is doing a Google search for “Photographers in Austin”, your website could come up if you have those keywords in your site somewhere. More on SEO (Search Engine Optimization) in the Marketing section.
I used GoDaddy.com to get started with my websites because when you buy a domain name there for about $10 a year, you also get a 5 page starter website and email! The starter websites are simply plug in templates so they are built and ready to go that you are just putting your information on.
Research for yourself! You’ll see how simple it is. You can choose to do it yourself or hire someone to build a website for you from scratch, either way you’ll have to have the domain name! You can find different variations to the website name you want and again see which one is more popular.
I recommend using a website name that is pertinent to your business so search engines will pull your site faster for people to find when they type in their keywords.
Step 5 – "Business Plan" Section
Ok, let’s write your business plan, which will be easier to do since you have already written out who, what, when, where, and how in Step 1. There are very detailed business plans and ones that are short and sweet. If you are planning to stay small, don’t try to give yourself a huge headache by using one of those technical business plan formats.
Find other business plan samples here by doing a Google search; they have sample templates you won’t have to pay for.
Here’s a good breakdown of the sections a business plan should have:
1. Cover Page
2. The purpose of your business
3. The business structure
4. What makes your business different?
5. How will you meet the clients’ needs?
6. Product or service description
7. Rates – Financial Table
8. Time Table to achieve goals while maintaining finances
9. Additional revenue if any – describe that here
10. Your business staff and management, donator and suppliers
it really is that simple!!!
Again, use your answers in the who, what, when, where, & how section and just expand on them. By now you already know what it is you want to do so a simple business plan will just help you maintain those goals. Business plans need to be as detailed as possible if you will use it to try and obtain funding from loans, grants, or private parties. People want to know where the money is going and how you plan to sustain after the seed money is gone.
CONGRATS!!
You are on your way to starting your own business
Told you this would be simple! But there’s more to come so continue...
Two more steps to go...
Step 6 – "Marketing" Section
The next step is going to be your Marketing. I saved the best for last because marketing is the most important aspect of your business and sometimes the most fun! There is a lot of great information in this section ~ Create a spreadsheet to keep track of websites provided and what they are for that way you’ll have a way to keep a tabs on your logs ins, etc.
(Marketing is important but so is customer service, but I can’t teach customer service ~ JUST TREAT OTHERS AS YOU WOULD WANT TO BE TREATED AS A CUSTOMER!)
Marketing is key to your business because it is the cornerstone on which your business is built. It’s about getting your name out there in front of actual people that are willing to pay for your service or product, and believe me, they are out there. They are just waiting to hear about you.
Again, your website is a huge tool for your business. So many people are looking online now to find what they are looking for. Yellow Pages are a thing of the past. Now, back to SEO; in a nutshell it’s making your website seen by more people because the search engines have searched out keywords based on a person’s search and your website has attracted the search engine because it had the keywords they were seeking. Make sense?
Imagine what people are searching for and apply those keywords throughout your website.
Word of mouth referrals are free and more effective than any other means of advertisement. This is where good customer service comes in. You’d use someone a friend referred you to before you’d use someone you found in the phone book. Correct?
No matter what, you’ll want business cards. These are like miniature billboards that are not only professional looking but can be a useful referral card, etc.
Check out Vistaprint for an inexpensive start to your marketing materials. You can often get 250 business cards FREE. (You will pay shipping however)
Other great marketing tools are postcards, brochures, car magnets, business card magnets, and lots more! You can also research companies online by simply doing a search for business cards. Sometimes it's just a matter of do you have the time to do all of this while also starting up your business? More than likely not, but your budget will determine this.
If you have to, print some business cards from home just to get going, you can find plain white business card paper at any local store where the copy paper is found.
Sign up for a MySpace, Facebook, and Twitter account promoting your business immediately. Write a blog too! They are all FREE.
Step 7 – "Get Going"
Start passing out your marketing materials, place ads on free sites such as craigslist.org and don’t wait for people to come to you. It’s like waiting for someone to knock on your door with your sweepstakes check. It’s likely he will never show up.
It’s more likely you’ll find business within the first week of following these directions. There will be people that try to discourage you from starting your own business, especially in this economy, but keep your head up and keep trucking. When you’re a success, those same people will possibly be asking for a job!
Manage your finances well, treat your customers with respect, and make sure to pay yourself. Even if you are only paying yourself $100 a month to begin with, just make sure you do it. You’ll keep yourself better motivated if you see the fruits of your labor.
So that's it.
Told you it was going to be easy!
On a personal note:
I wish you much success in your venture!
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