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How to Start a Small Business
Let’s cover the five steps to starting a Small business. Now who are we to talk about this? Our team sets up corporations and LLCs in all 50 states and worldwide. Our management has been in this business since 1994. We have helped people start about 100,000 businesses. Starting small business is something that just about anybody can do with a good idea, a strong work ethic, and a good set of resources. Starting a business involves thinking of a business concept, writing a business plan, understanding the financial side, and finally marketing and launching.
Five Steps to Starting a Business
1. Your BIG Idea
It might be a service you think people need or a product you’ve always wanted to make. Think of the iPad. That was a product people didn’t even know they needed yet, because nobody had thought of it before. Think of Uber; a modern twist on an old idea.
- It can be helpful to have people who are bright and creative join you for a casual brainstorming session. Start with a simple question like: “What problems do people have that they would pay us to solve? How can we make people’s lives easier?” At this point it’s not about a business plan. It’s about brainstorming and generating ideas. Many of the ideas will be flops and there will be quite a few ordinary ones. But keep in mind, to be successful you don’t have to do extraordinary things. You just have to do ordinary things extraordinarily well.
- Consider what you enjoy, what you’re good at, your experience and knowledge, when selecting a concept. If you have a particular skills or talents, consider how you can use these advantages you have into solving a problem other people have. Remember, you can have anything you want if you help enough other people get what they want. Combining skill and knowledge with a market demand is a winning combination to having a successful business idea.
- For example, if you liked riding a bike as a kid, maybe you can hire a fleet of bicycle delivery people in a big city. Enjoyed painting that fence as a kid? Maybe you can earn money painting people’s homes. What do you like doing? Combining your skills with your excitement about something you like to do is great for marketing what you want to sell.
2. Set Goals
Want financial freedom? Want to build up a business quickly and sell it for big bucks? I knew a guy once who started restaurants. A new restaurant usually draws big crowds. He would get potential buyers to check out the restaurant during the opening months when the crowds were big. He would quickly double, triple or quadruple his investment in the restaurant in a short amount of time. He would do that over and over again. Restaurants, sandwich shops. You name it. He just kept starting and selling restaurants.
You want something that provides a quick buck? Or d you want a sustainable income that you really enjoy doing? These are things you should know about yourself right up front.
3. Create a Name
That’s where we can help. You call us to form a corporation or LLC. We have a free business naming tool down in the description. You can even come up with a name before you think of the idea for the business if you want. In the beginning I wanted to form a corporation but didn’t know what I wanted it to do yet. So, I just came up with a generic name that I could use for about anything. You may think of a name you love right away or you may want to do what I did and choose a name that you can use for just about anything. Keep in mind if you want to change the name, you can just call us and we can file a simple name amendment. But go with your idea. Don’t let thinking of a name slow you down.
- Naturally, you’ll want to make sure that someone else hasn’t already trademarked the name. Try to think of a name that’s simple and easy to remember.
Tip: Think of popular brand names like “Apple,” “Google,” “Microsoft” and “Amazon.” These names are easy to remember and easy to say.
4. Choose Your Leaders
Will the company start with just you? Or do you want others to join you?
Getting other like-minded individuals on board with can add a lot of collaboration by sharing great ideas with each other. In this sense, one plus one can be a number greater than two. That is, two people working together can often come up with better ideas than they can on their own.
- Think about it. Bill Gates and Paul Allen. Larry Page and Sergey Brin. Steve Jobs and Steve Wozniak. Bill Hewlett and David Packard of Hewlett-Packard. John Lennon and Paul McCartney. All of these partnerships resulted in greater accomplishments than they likely could have as individuals.
- What are your strengths and weaknesses? Who could you find with strengths that compensate where you are weak? You want to find people you can work with; get along with. You want those with whom make your management team complete. Now, that person does not necessarily need to be your equal partner. That person may be a part owner or they may be an employee of yours.
5. Choose Partners Carefully
Did you know that 50% of marriages end in divorce, but the breakup rate for partnership is 85%? Even if it is someone you have been close to for years, it may not translate into running a business. You want a smart hard-working individual with talents that compliment your own.
- Is that person, as we said, strong where you are weak? If you’re both strong in the same areas, one of you might not be needed.
- Do you agree with where you want to take the business? Difference of opinion are natural. If they are about the little things, that may be fine. But if you each have strong opinions about the overall direction of the organization, that can create irreconcilable differences. Be sure your employees can get along with your partner as well. Employees who despise one of the leaders are not going to be very happy.
- When looking for partners and employees, do some studying on how to spot winners. I’ve seen some videos by Elon Musk on how he interviews new employees. Alex Hormozi has some great videos on picking winners. A person’s education does not necessarily coincide with what they’re good at. Elon Musk cares more about a person’s abilities than their education. I wanted to a physician when I was growing up simply because those were the only rich people I ever had regular contact with. So I got into medical school. Then before I started taking classes, the school ran out of money and shut down. Turned out to be a good thing because business was my passion rather than medicine.
So those are the 5 steps to starting a small business.
To get started, give us a call to set up your corporation or LLC.