OUR 10 STEPS FOR STARTING A BUSINESS
Take A Tour
The Starting Block – Building a Case for Your Idea
You have a great idea. Now you need to build a business case to
show others that your idea is viable. Describe your idea and why
it needs to exist. I suggest reading Simon Sinek’s Start With Why.
It’s a great resource, and I had the pleasure of meeting Simon who
helped me understand my “why” – which is, in short, to help people
get going and move forward, reaching higher ground. With Wicked Start,
you'll get the help you need to successfully start a business.
In this step, you'll also determine your business model – how you'll
make money. Think about whether you’ll be charging customers
a fee for a service or selling a product. At a high level,
think about whether you can make a profit.
(If you need more help, take our free Quiz “Is Your Idea Viable?”)
Industry – Know before you go
Before you actually launch your business, it's important to learn
as much as you can about the industry that you'll be competing in.
Whether you have experience or are just starting out, you now
need to network, find a mentor, and become more deeply engaged
in your product area. If you do not have experience, now's the time
to acquire industry knowledge so that you know what you're getting into.
If you’re not sure where to go, start with SCORE.org or
Entrepreneur’s Organization (EO). I’ve met with SCORE and joined EO.
Either one could be a first step for providing networking and
mentorship guidance if you don’t have your own networks to leverage.
Keith Ferrazi wrote a very useful book, Never Eat Alone, to help you
master the art of networking.
Prototype - Create a Sample of your product
Creating a sample of your product or service is an important part of
the business-planning process. It's here that you'll create a prototype,
get feedback from your prospective customers, and get folks excited
before you go full throttle (and spend all of your money). Does this
change any of your initial assumptions in terms of revenues or costs?
What is the impact on your business model? Can you still make a profit?
Bureaucracy - Structuring your business
Now's the time to pay attention to details that will be important as
you launch your business. You’ll need to structure your business
(e.g., LLC, corporation, sole proprietorship) and give it an
official name. You'll have to set up your business structure
legally in your state of residence. I’ve used CSC or Incorporate.com,
which can incorporate your business immediately, assuming that the
business name is available. At this point, it may be worthwhile to
meet with the pros: a CPA, a business attorney, and possibly an
IP attorney who can help with with trademarks, patents, or other
intellectual property issues. If you’re really bootstrapping and
short on cash, you could consider online legal services, such as
nolo.com, but I personally would recommend talking to pros for
individualized legal guidance.
Business Plan – Charting your course
Crystallize your new knowledge in a business plan that
highlights your business proposition or strategy. You'll determine
your start-up costs and project your profits. Do this exercise even
if you're funding this business venture yourself. From a strategic
perspective, this is your road map to profitability, though you may
make changes later. There are a few places to go to find free or
low-cost business plans. I like bplans.com. I’ve used them in the
past and like the fact that they offer several free plans for download.
Funding! Fueling Your Business
You're ready to think about finding money for your venture. Determine
whether you’ll be funding the business entirely with your own financial
resources or if you'll be searching elsewhere – i.e., investors.
If you’re not going to be self-funding, you can consider a loan from
the Small Business Administration (SBA.gov); or if you'll be seeking
investors, you'll create a killer investor pitch to get the money
that you'll need in order to launch. I recommend reading
Guy Kawasaki’s The Art of the Start, where there’s amazing guidance
for crafting an investor presentation.
Preparing for Launch – The Nuts & Bolts
It's time to think through the logistics and pragmatic components of
your business framework and operation. Now you'll get all of your
legal licenses and permits, set up the office, and set up financial
controls. These are all important elements to get into place before
you open the doors for business. Check with you state to see about
any special licenses that you may need – for example, a liquor license
if you’re starting a wine bar. In an earlier step, I recommended that
you meet with a CPA. If you’ve done that, have him or her help get you
set up financial controls so you can manage the money coming into
and out of your business.
Hiring - Building the Team
Define the roles that will be needed in your business. Besides you,
who else will you need to bring on board to launch and work with you?
If you have business partners, define each of your respective roles
and areas of responsibility. If possible, think about hiring
independent contractors or other types of “leased” professionals
initially, rather than payroll employees. This gives you flexibility
as you grow the business. Once you’re established, hiring full-time
employees may be the way to go. Personally, I've found that the big
plus of having employees is that they can be a part of the culture
and part of the fabric of the organization – folks who can believe
in your “why” and be true evangelists for your product.
Operations - Your Capacity to Produce
This is the nitty-gritty of how you’ll produce your product or service.
If you’re outsourcing production to third parties, solidify those
relationships and make sure there are quality control measures in place.
For example, if you design T-shirts and outsource production, make sure
that you have specific agreements about the quality of the shirts.
Alternatively, if you’re going to manage production in house,
make sure that you have the experience yourself to manage your
business operations – hire someone who does. If you’re starting a
French bistro because it’s always been a dream, but you were working
in corporate finance at a bank, I would strongly encourage you to
hire someone with experience to manage the restaurant. You’ll stand
a much better chance of success.
Marketing - Creating a Buzz
Your marketing strategy is a critical component that you must have
in place before launching. This step entails creating the branding –
the look and feel, or design, of your business – which extends
from your product and packaging to business cards and stationery.
This branding will serve as the foundation for the way the website
is designed to support your business. You'll also need to develop a
sales strategy to attract and retain customers, leveraging both
online (Internet) and offline (coupons, magazine ads) opportunities.
As a startup, you will stick to low-cost or free marketing techniques,
especially if cash is an issue. Try fostering word-of-mouth referrals,
engaging in public relations (PR), and leveraging Facebook, blogs,
and other social media.
Congratulations! You’re ready to get going and start the business of your dreams. Let Wicked Start be your guide in managing this start-up process. Sign up and become a member to get your own customized road map of action items based on your business idea. Seek guidance and get answers from experts and peers in our Community message board. Manage all of your planning documents and resources in My Files, a centralized, easy-to-access location right here on the site. For more information about how Wicked Start works, click here, or simply sign up now.
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