First 3 Steps to Starting Your Own Business

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You’ve decided to start a business. That is amazing! Congrats. Now what? You have no idea where to start? Welcome to the club. Most first-time business owners have sat in your seat. Not everyone was a business major or grew up in a family of entrepreneurs, and yet many people with absolutely no business experience have created amazing businesses. You can too. Let’s look at the first three crucial steps to starting your own business.

1. Refine and Define Your Idea

Ideas are funny little things. You can have a brilliant idea that might actually change the world, but if that idea stays in your brain and never makes it out into the real world then it is nothing. It is powerless. One of the most powerful things you can do in the early stages of creating a business is to get those ideas out of your head and down onto paper.

Writing out your business idea is a great first step, but surprisingly most people do not take this step first. Instead, the first thing they do is to start talking about their business idea with others. This can be tricky for a few reasons. Number one talking about our ideas tricks our brains into thinking we actually accomplished something. We did not. Talking is not doing. Number two, when you talk about your idea others may take the idea, or they may criticize the idea. Criticism in this early stage can be deadly.

Instead of talking, write. Write out your idea. Define it and refine it on paper and then spend time with it. This is also a great step to go ahead and choose a business name. Getting company name ideas and securing a .ONLINE website address will increase your excitement for your new adventure.

2. Write Out Your Business Plan

It is important to note that writing out your business plan is not the same thing as writing out your ideas. A business plan is an important document that you can use in the future if you attempt to take out a business loan or if you will be going after investors.

If you have no idea how to write a business plan the U.S. Small Business Administration has great tips and guidance on how to do this. Taking this step will help you gain important momentum in your business planning. This is a real business, with an official business plan documented.

It is important that you take time and write this business plan well, in case you need this document in the future. Keep your business plan and all your important contract templates together to be able to use them when it’s necessary.

3. Evaluate Your Finances

This is where the rubber meets the road. Remember the old saying, “Put your money where your mouth is.” At this point, you will evaluate your finances and figure out what you can invest in your business idea and how much you will need from other sources. You might get a business loan to support your business, or apply for company credit card if you want to avoid overspending. Many people find that in this stage of the process it is helpful to call in professionals.

A financial advisor is often recommended at this point. A financial advisor will be able to go over your business plan with you, look at your finances, and give you a realistic idea of how much capital you will need to get this business going. The great thing about having a financial advisor on hand is that they will give you an honest, fact-based answer. When people are starting a business they are often overly optimistic, which is a good thing, but they need the balancing power of a financial professional to give them a reality check concerning how much the business is really going to cost.

At this point, it is important that you do not get discouraged about the investment necessary, but rather listen to the advisor concerning the probability of making a profit from your idea.

Starting a new business can be exciting. By taking these first practical steps, you can increase your chances of long-term business success.