Wikipedia of Finance - e-learning course on Startup and Business Wikipedia Chapter - How to Start a Business Step by Step Guide for Beginners to Business Basics

How to Start a Business? Step by Step Guide for Beginners to Business Basics


Are you looking to start a business or start a company? Are you looking for step by step guide to start a business in India or somewhere in the world? Then you should these important points to be considered before starting your own business or entrepreneurs. Whether you do not succeed to get a job, but if you have a revolutionary business concept then you can change your world. Regardless of the reason, if you are going to start your own business, the following guide will show you how to do that step by step.

You can use this guide before starting a business; however, to get more out of it, we recommend that you first read it all the way through, from starting step to ending one, and then you go reading more carefully each step as you go applying.

20 Key Steps to be followed to Start a Business:

There are few key steps which you need to follow for starting a business from scratch. Let us discuss with examples how to start a business to understand it better:

1. Find a Business Idea:

If you already have your business idea, that is, you know what business you’re going to do, you can go to the next step, but if you do not already know, the first step to start a business is to find a business idea.

Some ways to find a business idea that you can use are:

  • Think of a product or service that others do not offer.
  • Identify a product or service that others offer, but you could add something that differentiates you from them or make you do better.

But whatever the case, it is advisable to choose a related to what you consider your business passion in life.

2. Assess Whether the Idea Could Succeed:

Before going further, it is recommended to do a little market research that allows you to know if your idea could succeed, namely, that allows you to have an initial idea of the practicality of business. To do this, you could visit the places where similar products or services you are planning to offer are being offered, and analyze if there is sufficient demand for them.

3. Select the Name of the Business:

After finishing that your idea has a chance to succeed, you could start by taking one of the most important decisions: the name of your business. To find names for your business you could look out the names of the competitors and pay attention to the traders like you, or go to business directories on the internet.

4. Choose the Location of Your Business:

After you have chosen the name of your business, another important decision is the location of your business. To find a location for your business you can explore check on newspaper or internet ads, or tour the areas where you wish it to be located. Also, see if you can find local and offices for sale or rent.

5. Define the Target Audience:

One of the most crucial steps when you are going to start a business is to define the target audience. To determine your target audience, in beginning, you must explore the market that exists for your product or service in different type markets consisting of consumers with similar characteristics.

6. Analysis of the Target Audience:

Once you’ve determined your objective audience, you have to analyze it in order to be able to know them better, and so design the product that best suits your priorities and express other strategies that better results could have on them.

7. Competitive Analysis:

In addition to analyzing your target audience, it is important that you analyze your future competitors in order to be able to know them better before you start a business, and make the decisions that allow you to compete with them in the best possible way. As in the last case, to analyze competition you must determine the information that you would like to discuss it firstly.

8. Development of the Business Plan:

The development of a business plan is one of the crucial steps you should have to follow. This will allow you to check the feasibility of your business, and will serve as a guide to implement and manage it, and allow you to prove the attraction of your idea to third parties.

9. Searches for Funding:

In case, your savings are not sufficient to cover the investment you need to start your business, the next step is to search the financial aid.

Some of the main sources of financial help are:

  • Family and friends.
  • Banks.
  • Financial institutions oriented SMEs.
  • Investors.

10. Legal Constitution:

The legal constitution is a necessary step in creating your business, by doing it your business will be legally recognized and qualified for credit and issue receipts. It is recommended that you hire a lawyer who is expertise in the area of legal matters.

11. Obtaining the Business License:

Another necessary step you must perform is to get the work license. It is necessary to get business license which is issued by related authority of your business.

12. Registration Mark:

If you’re going to create a brand name for your product or service, it is recommended to register your business for copyrights; so that others cannot use the same or similar; or copy it in order to take advantage of your reputation.

13. Purchase or Rent of the Premises:

If you have not yet done so, the next step consists in the purchase or rental of the premises where you will run your business. Whatever the case, at this point it is suggested to you hire a expert broker for quick and better service; He will guide on the buying or rent of the space for your business and, most importantly, you avoid making mistakes when signing the contract.

14. Modification and Decoration of Space:

Once you have purchased or rented a space for your business, you should modify it to suit your type of business, and decorate according to the concept or style you want to give.

15. Buy and Install Machinery, Apparatus, and Furniture:

Once you have remodelled and decorated a space, you can continue with the buying and installation of machines, equipment and furniture you will use to operate your business.

16. Look for Suppliers:

The next step includes the search and selection of suppliers with whom you will work, that is, the search and selection of companies that will provide inputs, products or services necessary for the operation of your business.

17. Search, Selection, and Training of Staff:

Along with the search and selection of suppliers also, you could proceed with the search and selection of staff you hired to help you operate your business and successive training. First you must describe the job profile that a person must meet for you to apply for the positions you have available, and find or recruit applicants who meet the profile.

18. Organization of Accounting:

The organization of the accounting of your business is an important step, not only because it lets you know how much tax you have to deposit, but also it will permit you to analyze the economic condition of your business, and thus make better decisions. It is advisable to hire a chartered accountant who has professional skills in tax and legal matters. This is an important step before you start a business.

19. Marketing Organization:

Other important step that is needed to be done is the organization of marketing your business, which allows you create expectation for the opening of your business, and you will use to get your first customers. For this, you can use brochures, banners, your business website, etc.

20. Finally, Start a Business:

Finally, after planning and executing ideas for your business, now it is time for opening of your business. On this day, you must coordinate functions or works soundly with your team and make sure the good performance of it, and correct all errors that both you and your workers may commit on this first day of operations. By following above steps you can start a business systematically.

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