Starting a business is easier than you think. Nearly 600,000 new businesses open up each year in the US. However, close to half of these businesses are destined to fail.
The question is, how can you become a small business owner that won’t join the ranks of fallen companies and crushed dreams?
Some businesses fail because their owners don’t know how to market. Some take out too much overhead. Some companies go under because there isn’t a big enough demand for their products or services.
We can help you avoid failure. Keep reading for a quick but complete business startup checklist to help you find success.
Complete a Market Analysis
Researching your market and industry is the first step in our business startup checklist. You need to know exactly what kind of market conditions you’re about to enter into.
For example, how many other types of businesses like yours are in the area? An oversaturated market is no place for an unestablished startup company.
You also need to learn more about the demand for your products or services and your target market. Finally, look into the costs of running your business and what your financial projections might look like.
Refine Your Business Idea
Based on what you learned during your market analysis, you can refine your business idea and establish your niche in the industry. What can you do differently or better than your competitors? How can you corner a specific demographic of the market to ensure your success?
Write a Killer Business Plan
The next step in our business startup checklist is writing a professional business plan. This step is critical to launching your company. If you fall short on your business plan, you’re going to have a hard time getting lenders or investors to back your startup.
Conversely, if your business plan is thorough, detailed, and highly researched, you’ll impress potential investors. In some cases, you’ll get approved for funding that might be outside of your range (in terms of credit score and history).
Know Your Financing Options
Smart management of any kind means knowing your options. This rule also applies to seeking startup funding.
SBA loans are some of the most common small business financing options. However, they can be more difficult to procure.
If you get denied for this type of business loan, you can apply for a personal loan, use credit cards, or fall back on personal savings. There are also private investors, crowdfunding groups, and angel investors.
Practice Fiscal Discipline
Lastly on our business startup checklist, spend money wisely. Don’t take out too much overhead before you’ve even launched your business. It’s important to test the waters and establish a presence in the community before biting off too much debt.
You should also take some time to learn about business taxes. For example, if you lose track of your EIN, you can view here what to do. Don’t neglect your taxes only to end up owing Uncle Sam thousands of dollars at the end of the year.
Have You Completed Everything on Our Business Startup Checklist?
Becoming a successful small business owner won’t happen by accident. Follow our business startup checklist to increase your odds of success. And, of course, never stop doing research and learning more about business ownership.
For more professional or personal advice, take some time to look through the rest of our blog. You’re sure to find plenty of additional articles that can help you improve your life.