Step 1: Conduct Research
If you already have a business idea, it's time to balance with a little reality. Does the idea have the potential to succeed? For a business to succeed, You must be able to solve problems, meet needs, or offer something the market wants. There are several ways to identify needs such as conducting research so as to do trial and error. Through research conducted, You can determine many things that are best for business.
Step 2: Create a Plan
You need a plan to make business ideas come true. The Business Plan is a design that will direct your business from the initial stages of establishment to business growth, and this is a must for all new businesses. There are various types of business plans for various businesses. This type of business plan is usually made in detail, thus making it easier for the Bank or investor to validate your business plan when you want to submit capital to a Bank or investor.
Step 3: Financial Planning
Starting a small business does not have to require a lot of money, but it will involve some investment and initial ability to cover costs before making a profit. You need to plan finances by compiling a spreadsheet that estimates the initial business costs such as licenses, permits, equipment, legal fees, insurance, branding, market research, inventory, trademarks, bookkeeping, and so on. Other than that, You also need to prepare a financial plan for the costs of production, rent, utilities, inventory, employee salaries, etc. that are needed in running the business for at least 12 months.
Step 4: Choose Business Structure
Your business can be an individual company, partnership, limited liability company, or corporation. The business entity you choose will affect many factors. You can choose the initial business structure and then re-evaluate and change the structure as growth and business needs.
Step 5: Select and Register Business Name
Business names play a role in almost all aspects of business. Make sure you think of all the potential implications when exploring options and choosing a business name. After choosing a name for a business, you need to check whether the name has become a trademark of another business. Furthermore, You need to register a business name that can be done in various ways according to the chosen business structure.
Step 6: Get a License and Permission
Documents are part of the initial process when you want to start your own business. There are various business licenses and permits that may apply to certain situations, depending on the type of business you start and where the business is located. You need to examine what licenses and permits apply to your business during the initial process.
Step 7: Choose an Accounting System
A business can run effectively according to the system used. One of the most important systems for business is the accounting system. Accounting systems are needed to create and manage budgets, set prices, do business with other parties, and file taxes. You can set up your own accounting system or hire an accountant to run the system. If you choose to set up your own accounting system in starting a business, you can use Journal accounting software.