11 Steps to Set Up a Business
Following on from our “Idea to Earnings” webinar, many people have been looking into creating a side hustle or building a full time business, to leave the corporate world and go it alone.
Starting a business can be exciting, scary, challenging, stressful, fun, rewarding and risky- all at once! Whether your business is producing and selling a product or delivering a service, it’s essential to go about it in a structured and methodical way to ensure that you have set the right foundation for success.
Find Your Inspiration
Identify a Problem - Start by looking for problems in your own life or the lives of others that don't have adequate (or any) solutions.
Explore Your Passions and Skills - Consider what you're passionate about and what you're good at. Business is hard so it helps to love what you do!
Market Research - Investigate the market to see what's already out there, who your competitors would be, and what niche you might fill, or how you can do things better.
Brainstorm Solutions - Once you've identified a problem and conducted market research, brainstorm various solutions. Think creatively and consider all possibilities, no matter how unconventional, think big and wide before narrowing in on your idea.
Seek Validation for Your Idea - Before fully committing to your idea, seek feedback from potential customers, family and friends. This can involve discussing your idea with friends and family, conducting surveys, or creating a minimal viable product (MVP) to test the market's response.
Now you’ve formed your idea, where do you go from here? We’ve put together a check list for you to set up your business.
11 Steps to Set Up Your Business
Conduct Market Research
Identify your potential customers and understand their needs, use surveys for quantitative data, focus groups for quality information, or market analysis tools.
Study your potential competitors to understand their strengths and weaknesses, pricing, and marketing strategies.
Analyse market data and trends to forecast future demand, needs and identify emerging opportunities or threats to your industry.
2. Create your Business Plan
This document and plan will evolve over time but should cover:
Executive Summary: A brief overview of your business goals and vision.
Market Analysis: Insights from your market research, including target market and competitor analysis.
Products and Services: Detailed description of your product(s) or service(s) and how they meet your customers' needs.
Marketing and Sales Strategy: How you plan to attract and retain customers.
Financial Plan: Projections for your revenue, expenses, and profitability.
Operations Plan: Details on how your business will operate, from supply chain to fulfilment.
3. Choose the right Business Structure
Understand the different types of structures (sole proprietorship, partnership, corporation, etc.) and their implications on taxes, liability, and management.
It’s worth consulting with a legal advisor to determine the best structure based on your business needs and goals.
4. Register your Business
Choose a unique name and ensure it’s not trademarked.
Register your business name with the appropriate government agencies.
Obtain necessary permits and licenses specific to your industry and location.
5. Secure Funding (depending on your business needs)
Calculate the initial funds you need to start and run your business until it becomes profitable.
Explore funding options such as personal savings, loans, investor funding, your network or crowdfunding.
Prepare a solid pitch or business plan (see above) to present to potential investors or lenders.
6. Manage your Finances
Open a business bank account to keep your personal and business finances separated.
Set up accounting software or spreadsheets (in the short term) to track your income, expenses, and taxes.
If numbers aren’t your thing, consider hiring a professional accountant or bookkeeper to manage your finances and tax obligations.
7. Comply with Legal Requirements
Understand and adhere to country, local, state, and federal regulations related to your business, including tax obligations, employment laws, and industry-specific regulations.
Secure any necessary licenses and permits.
Protect your business with the right insurance policies.
8. Set up your Workspace
Determine the type of space you need based on your business activities (retail space, office, manufacturing, etc.).
Consider location, size, cost, and legal requirements when choosing your premises.
Ensure your workspace complies with health, safety, and accessibility standards.
9. Build your Team (when needed)
Identify the roles and expertise needed to operate your business effectively over time and prioritise the roles needed in your hiring plan.
Use your network, job postings or specialist recruitment agencies, to find the right candidates.
Establish clear job descriptions, compensation structures, and performance expectations.
10. Develop your Product or Service
Finalise your product design or service offering based on feedback from market research.
Determine your production method, supply chain logistics, and quality control processes, look into scaling as your business grows, quality control and trusted suppliers.
Create prototypes or beta services to test the market before full-scale launch.
11. Build Process and Get Tech as Needed
Identify key processes that need to be in place for your business to operate smoothly, such as customer success, order fulfillment, and inventory management.
Invest in technology that can automate and streamline these processes, such as CRM systems, e-commerce platforms, or production management software. Top Tip: Test out free tools before investing in a chosen tool.
Stay updated on what new and interesting tech is selling into your industry to maintain a competitive edge.
Each of these steps requires careful planning and execution to build a solid foundation for your business. Where needed, seek advice from industry experts, mentors, or business consultants to guide you through the process.
