Launching a successful business is a thrilling and fulfilling experience for every entrepreneur. However, where and how do you even start? You can always start by growing a small business to maturity and continue to reap its fruits for life. Well, there are several approaches to starting up a business, coupled with numerous important factors that must be considered. 

With our in-depth guide on growing a small business, you will be able to remove uncertainty from the process and maximize your chances of success. We will also take you through every stage of the procedure involved in growing a small business. Ranging from formulating your business concept and registering to writing a business plan, and starting, and growing a small business. Let’s get started! 

Before Starting: Adopt the Proper Mindset

Before you begin the process of growing a small business, always remember not to compare your success to that of others. However, you must keep your attention on your business journey. Oftentimes, overnight successes are reported to the public differently because of the exciting headlines they make.

One thing they don’t recognize is the number of years invested in planning, developing, and positioning. Based on this, always focus on growing a small business and benefiting from the source.

Consistency

In the past, aspiring or fresh entrepreneurs usually depended on their motivation, but when it was reduced, they began to feel defeated. This is why you should develop your habits and routines, it will continue to keep you going even when your motivation drops.

Proceed With The Next Action

For some entrepreneurs, they may decide to leap blindly into the unknown and invent things as they go. Also, some business owners never start because they are unsure of the outcome of the analysis. Meanwhile, you may be a combination of both, and that’s exactly where you should be.

We recommend that you keep track of all the ideas and put everything into writing. This is one of the most effective methods to achieve any professional or personal objective. Next, you will need to arrange those actions according to priority, like what must be done first. Furthermore, we must constantly continue to move forward if you want to successfully grow a small business.

Choose Your Business Idea

Most business advice often suggests that you should make money from your passions, however two other essential components must not be ignored. This includes the business being profitable and must be something you’re skilled at. In a case where you’re not sure about the specifics of what your business will involve, then we advise that you look into the following:

• What is your passion?
• What are the things you dislike doing?
• Is there any way you can simplify those tasks?
• What valuable skills do you have?
• On what topics do others seek your advice?
• What would you talk about for five minutes if you had ten minutes to spare on any topic?
• What are the things you’ve always wanted to do but lacked the means to accomplish?

Examine Your Market And Competitors

Many entrepreneurs often invest more time in product development than studying their competitors. Furthermore, if you apply for funding outside, the potential lender/partner is interested in what makes your business idea so unique. For instance, if market research demonstrates that there is a monopoly on your goods/services, then you should consider taking an alternative strategy.

The first step to consider in any competitive study is primary research. It involves putting together information directly from potential clients rather than depending on historical data for conclusion. To determine what customers want, you may need to conduct surveys, interviews, as well as questionnaires.

Meanwhile, you can make use of existing information sources, like census data, to obtain data when you’re conducting secondary research. This existing data might not be as detailed as the primary research, but you can still examine, gather, and evaluate it in various ways that suit your needs. In addition, you should do a SWOT analysis by exploring the details of how well your product is in the market and guiding your decision-making process using such information.

Draft A Business Plan

A business plan is an active document that acts as a road guide for a business that’s just starting up. It’s highly beneficial to potential investors, financial institutions, and company management, and they will find this document easy to read and comprehend. Meanwhile, creating a business plan will allow you to refine your idea and identify possible issues, even if you’ll be financing yourself.

Select Your Company’s Organizational Structure

In the process of structuring your company, it’s important to consider what impact different business structures will have on your daily operations, taxes payable, and the exposure of your assets.

Below we have outlined the different types of business structures. Scroll down to learn!

• LLC: An LLC is a type of business structure that limits your liability for business debts. For LLCs, there must be a registered agent and it can be owned by one or more individuals or businesses. We call these proprietors members.
• Partnership with Limited Liability (LLP): It’s quite similar to an LLC. An LLP is mostly used by licensed business professionals like accountants and attorneys. In addition, a partnership agreement is needed for these arrangements.
• Sole Proprietorship: A sole proprietorship is mainly for individuals who are running a solo business. Under the law, both the business and the owner are considered one entity. Furthermore, the business owner is in charge of the company’s obligations. Therefore, if the business fails, the owner bears the full financial and personal burden of the business.
• Corporation: Similar to an LLC, a corporation helps to reduce personal liability for business debts. It can be taxed as a C corporation (C-corp) or an S corporation (S-corp). For small corporations, you can take advantage of S-corp status, which provides pass-through taxation, once you meet the specific criteria set by the IRS. Larger companies and startups aiming for venture capital are taxed as C-corps.

Select A Name For Your Company

You will need to select a name for your company, however, you must make it memorable and not overly challenging. You can select the same domain name to create your online identity if you have one. Furthermore, a business name cannot violate any trademark or service mark that’s already registered with the United States Patent and Trademark Office (USPTO), nor can it correspond with another registered company in your state.

Get An EIN And Register Your Business

Whether it’s a corporation, LLC, or other business entity, you can make it formal by submitting forms to the business agency in your state, which is the Secretary of State. Meanwhile, getting a registered and licensed agent to accept legal documents on behalf of your company is necessary in this process. Additionally, there is a filing fee. You can apply for business bank accounts, licenses, and tax identification numbers (TINs) using the certificate you receive from the state.

Furthermore, you should endeavor to get an employer identification number (EIN). The federal employer identification number is necessary for all companies except sole proprietorships that do not employ anyone. Also, ensure that you get your number from the IRS within minutes of submitting your application.