Seven Steps to Starting Your Own Business

By Mihran Kalaydjian, CHA

Consultant, Strategist, and Writer

Seven Steps to Starting Your Own Business

People are always asking for a list of fundamentals, a checklist they can use to start their own businesses. From your business type to your business model to your physical location, there are so many variables it’s not easy to come up with a list that will work for everybody. The key, regardless of what type of business you’re starting, is to be flexible!

That said, here’s are seven steps to take before you start your business.

Step 1: Personal evaluation.

Begin by taking stock of yourself and your situation. Why do you want to start a business? Is it money, freedom, creativity, or some other reason? What skills do you have? What industries do you know about? Would you want to provide a service or a product? What do you like to do? How much capital do you have to risk? Will it be a full-time or a part-time venture? Your answers to these types of questions will help you narrow your focus.

Step 2: Analyze the industry.

Once you decide on a business that fits your goals and lifestyle, you need to evaluate your idea. Who will buy your product or service? Who would be your competitors? You also need to figure out at this stage how much money you will need to get started.

Step 3: Make it legal.

There are several ways to form your business –– it could be a sole proprietorship, a partnership, or a corporation. Although incorporating can be expensive, it is well worth the money. A corporation becomes a separate entity that is legally responsible for the business. If something goes wrong, you cannot be held personally liable.

You also need to get the proper business licenses and permits. Depending upon the business, there may be city, county, or state regulations as well as permits and licenses to deal with. This is also the time to check into any insurance you may need for the business and to find a good accountant.

Step 4: Draft a business plan.

If you will be seeking outside financing, a business plan is a necessity. But even if you are going to finance the venture yourself, a business plan will help you figure out how much money you will need to get started, what needs to get done when, and where you are headed.

Step 5: Get financed.

Depending on the size of your venture, you may need to seek financing from an “angel” or from a venture capital firm. Most small businesses begin with private financing from credit cards, personal loans, help from the family, etc. As a rule of thumb, besides your start-up costs, you should also have at least three months’ worth of your family’s budget in the bank.

Step 6: Set up shop.

Find a location. Negotiate leases. Buy inventory. Get the phones installed. Have stationery printed. Hire staff. Set your prices. Throw a “Grand Opening” party.

Step 7: Trial and error.

It will take awhile to figure out what works and what does not. Follow your business plan, but be open and creative. Advertise! Don’t be afraid to make a mistake.

Above all, have a ball! Running your own business is one of the great joys in life!

 

 


3 thoughts on “Seven Steps to Starting Your Own Business

  1. dianaroggenbuckebrown – Melbourne, Australia – I am a freelance writer and a passionate animal lover and advocate. I write the 'What's On' column for The Bayswater Buzz and The Ferntree Gully News, as well as writing romance novels. I have recently completed my first Children's picture book and I am hoping to have it published. I have three noisy, cheeky children and a household full of pets that keep me on my toes. I am fortunate enough to have the most amazing family and friends that help keep me sane and grounded. I always look on the positive side of life, for me the glass remains half full.
    dianaroggenbuckebrown says:

    My parents always had their own business and growing up I watched them work so hard trying to make their business a success. At the time I vowed that I would never have my own business however that changed later on in life when I had children of my own. Having my own business meant that I was able to work around my children and I loved that. However my business was only small and once my children went off to school I had to given it up in favour of a steady income that will pay for school fees as well as food and every day living costs. I am sure that in time I will give it another go though. Great post.

    1. mihrankalaydjianblog – San Diego, CA – Mihran Kalaydjian On a personal note, I love the outdoors, comedy, bbq, reading and traveling. I worked in the beer industry in college so I love talking about good beer. I used to be a competitive runner so (like all runners) if you make the mistake of asking me, I'll tell you about my entire career and PRs. I also spent my youth working in restaurants, so if you've done the same, we can swap stories. The five items I can't live without: Everything, infinity, wanton boredom, limitless limits, change. Mihran Kalaydjian, A proven ability to articulate a company's brand culture as well as key strategic initiatives and delivery of desired results. Outstanding leadership, communications and project management skills. A committed individual with strong organizational skills that believes leading by example is key to building a strong team to achieve high guest satisfaction results and cost control measures. Mihran Kalaydjian provides visionary leadership and management oversight of the sales, marketing and revenue strategies for Classic Hotels and Resorts. Mihran Kalaydjian suggest: Your energy should be focused on finding a solution, quickly and effectively. I am at my best when I have a tight deadline, but every aspect of the project is planned, organized and working in excellence.
      mihrank says:

      You are completely welcome. I’m glad you like the blogs I’m re-blogging. 🙂 Yes, glad our paths have crossed. Your page is very interesting.

      1. dianaroggenbuckebrown – Melbourne, Australia – I am a freelance writer and a passionate animal lover and advocate. I write the 'What's On' column for The Bayswater Buzz and The Ferntree Gully News, as well as writing romance novels. I have recently completed my first Children's picture book and I am hoping to have it published. I have three noisy, cheeky children and a household full of pets that keep me on my toes. I am fortunate enough to have the most amazing family and friends that help keep me sane and grounded. I always look on the positive side of life, for me the glass remains half full.
        dianaroggenbuckebrown says:

        Thank you so much 😊😊

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