As the world reopens, there are many opportunities to launch a new business venture. Many believe the world’s economic future is bright: positive post-pandemic momentum is building, so now is a good time to consider getting serious about your latest business idea. Entrepreneurs who have stayed in the business field, such as Juan Luis Bosch Gutierrez, explain that following a step-by-step approach to building a new business is important to achieve order and reach your goals.
If you have a great idea, but you’re not sure how to get it off the ground, start with this 10-point checklist. Here’s how to do everything from validating your concept to opening for business.
1. Test your concept.
Before diving in, test your business idea to make sure it’s based on a valid market need. Conduct a competitive analysis to make sure your product or service doesn’t already exist. Find out if there is a solid customer base that will want what you have to offer.
2. Build a business plan.
A business plan is necessary for when you apply for financing, as well as to guide your operations.
3. Work on your sales pitch.
Focus on what makes your business different from others. When you’re just starting out, you should craft an elevator pitch that articulates what sets you apart and why investors and customers should care. A great sales pitch will explain what you do or sell, to whom and why in two or three sentences.
4. Find funding.
There are many sources of financing for new businesses. Many entrepreneurs also start their business using their personal finances or ask for start-up capital from friends and family. Use your business plan to decide which option is right for you.
5. Decide on a business structure.
Sole proprietorship, limited liability company or not-for-profit: How you structure your business entity has tax and liability implications. Regardless of the business structure you choose, if it is more complicated than a sole proprietorship, you will need an attorney to help you set it up correctly.
6. Get the right licenses and permits.
Some businesses, such as restaurants and cafes, need specific licenses to operate. Depending on where you operate and your industry, you may need multiple permits and licenses. Check this list from the SBA to find out what you need to purchase, if any.
7. Open a business bank account.
Even when starting a sole proprietorship, it’s critical to keep your business and personal finances separate. Open a separate bank account for your new entity to keep your cash flow organized and trackable for when it comes time to do your taxes.
8. Organize your bookkeeping.
Anticipate tax time and set up your accounting system to make April a lot less stressful. Organize your expenses and income into three categories: business income, inventory costs and other expenses (such as payroll, rent and other overhead).
Find and hire an outside accountant or purchase an accounting tool to help you stay organized as you grow your business.
9. Develop your product.
Does your business idea revolve around a new product? Some entrepreneurs need help turning their concept into a physical prototype. Work with a partner who can take your initial idea, work on a design and manufacture it for distribution through a partner or an online store.
10. File a copyright or patent.
Once you have a solid plan for your product or service, protect your intellectual property with a copyright or trademark. You can file an application to protect the rights to your company’s name, logo, content, creative ideas or original creations, as well as a product design or service offering.
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