15 Steps to Start Your Small Business (2024 Guide)

Starting a business could be a rewarding path to take. Whether you are looking forward to earning more income, attaining financial freedom or exploring a field or industry, beginning a business is usually an exciting journey.

From validating your business idea to creating a business plan, obtaining the necessary licences and strategizing the marketing options, there is a lot to be done. In this guide, we will take you through 15 crucial steps to take to start your small business. Now let’s begin.

1. Identify the Business Idea

When starting a new business enterprise, the first thing that comes to your mind is what to sell. Getting this right is essential, as it could determine the business's success. Whether you are looking to start your business remotely or you want a physical shop or office to sell your products or services, there is a lot to explore.

Business ideas could, therefore, come up from an interest, an intent to solve a problem, following a current trend, capitalising on other successful products in the market and so on. Do you wish to start a business based on your hobby? What meaningful activities do you like to do in your free time? Are there particular problems you would like to solve, etc? All of these could spring up a business idea that might do well in the market. Beyond that, you would want to research the market to see if there are particular product trends you would want to tap into.

2. Validate the Idea

Once you can come up with a business idea, now is the time to validate the idea before diving into other steps. With validation, you will be able to confirm if your business idea is attractive to customers or not. If the product or service you are willing to offer is already doing well in the market, then there is a higher chance of success than if it's an entirely new one. As such, you would want to create a channel where you could determine if the idea is valid or not.

To do this, you could begin by sharing the idea with a trusted friend or business partner and ask for their honest opinion about the business idea. Beyond that, you could also set up an online store and run some ad campaigns to see the number of people who will be willing to purchase your product. Going through online surveys and administering questionnaires to your target audience is another way to gauge if your business idea is valid and could do well in the market.

3. Write a Business Plan

Projecting a strong business plan is the next step to take. A business plan helps you outline your business goals and how you wish to achieve them. It provides details about the product, price and pricing strategy, marketing options to use, materials needed for production and how to source for them, and a lot more. It shows how you wish to set up and run the business and ultimately make money from the business.

Apart from the fact that this document serves as a guide for you and your team and they are essential in seeking investors and creditors for your new business. A detailed business plan should also explain your business budget, how you wish to utilise funding and how to overcome every other financial problem that could arise. Beyond that, you would also want to identify other major roadblocks and how to fix them.

4. Choose a Business Structure

Before you can legally form your business, you need to select a business structure. While selecting a business structure for your business, you would want to consider factors like the legal and financial protection available, management structure, flexibility and access to investors and lots more. Basically, you can form your business as a sole proprietorship, partnership, Limited Liability Company or Corporation.

A sole proprietorship business gives you complete ownership of the business, and as such, you enjoy the business profit and loss alone. Beyond that, there is no liability protection. Thus, your personal assets and properties aren’t protected from business debts. With a partnership business structure, you could decide to form the business with two or more partners and you all have to share the business profits and loss. Partnership business structures aren’t also protected from liability, and with that, the partner's personal assets aren’t protected if the business runs into a loss.

LLCs, on the other hand, are recognised as a separate legal entity that also offers members liability protection. The business in its own name is therefore held responsible if it runs into debts and not the members. Corporation is quite a complex business structure. However, it offers the strongest liability protection for members. It also requires more paperwork and filing than other business structures.

Each of these business structures has its distinct characteristics and benefits, which must be considered before registering your new business. Depending on the state you are in and the business structure you wish to form, there are several rules and regulations guiding business formation.

5. Name and Register your Business

Having decided on the business structure to form, you should go ahead to name and register your business. Many states within the US have varying requirements and costs for business registration. You would, therefore, need to find out what those requirements are before registering the business. Beyond that, the business structure you will be forming could also determine the requirements. Registered agent addresses, business addresses, member details and so on are some of the information you will need to form the business.

Once the application for registration has been approved, you will be notified and be issued a certification of incorporation. It is also important you come up with a memorable, simple, and easy-to-remember name, as this would be required for your business registration. Beyond that, you would want to ensure that the name meets the standard and requirements of the secretary of state, and as such, it should not be offensive, abusive or sensitive.

6. Obtain Licences and Permits

Obtaining the right licenses and permits before starting your business operation prevents you and your business from any legal trouble. Depending on the type of business and your location, you might find that there are several licenses and permits that need to be gotten. As an intending business owner, it is therefore important to research the type of licence that will be needed. Apart from that you will need to begin this step early to allow enough time to process and obtain the licence or permit. You might, however, also need to seek legal advice here to be on the safer side.

7. Get the Necessary Insurance

Getting the necessary insurance that covers your business and assets is also vital. While there are several insurance schemes you might be required to obtain, it is important to get general liability insurance. This way your business will be protected in case there are legal claims against your business in the future. Depending on the type of business you set up, you might also be required to obtain property insurance, product liability insurance, workers compensation, employment practices liability insurance and so on.

8. Open a Business Bank Account

Opening a business bank account helps you separate your business finance from your personal funds. Beyond that, it makes financial recording and bookkeeping a lot easier, thereby ensuring a stress-free tax year.

As you’d also expect, using a business account also allows you to enjoy the liability protection that comes with some business structure since you’ve separated your personal finance from the business own. Even if your business is set up as a sole proprietorship, having a separate business account for your business is key. You could, therefore, open a local bank account around or use a global and online account if your business serves people from another country.

To open a bank account within your state, you would most times need an Employment Identification Number, business registration details and lots more. There are a lot of factors you would want to consider when choosing a business account. These include your unique business needs, availability of a nearby bank branch, quality of the customer service support available, bonuses offered by each bank, etc.

9. Source for Funding

For every type of business that you set up, securing adequate finance is a vital step to take care of. While some business requires a little to set up, especially if you're starting an online business, others do require more. There are a lot of options when it comes to funding your business. Some of them include your personal finance, funds from friends and families, loans, grants, crowdfunding, funds from investors and so on.

Each of these sources comes with its unique features and benefits, and you would want to ensure you do thorough research when the funds are coming from a second party. Personal funds could include your savings, selling your personal properties to get some money, and so on. The ones from friends could be in the form of a gift or loan, as the case may be.

Depending on the type of business you do and your location, you might also be qualified for some forms of grants. With angel investors, you would be able to receive finance from individuals or enterprises in exchange for a percentage ownership of your business. Since each of these funding options works differently, it is worth researching the ones you wish to use.

10. Get the Necessary Software

As a business owner, there are some software packages you will need in order to automate your business activities. This software doesn’t just make carrying your business operation easier, but it also helps you function effectively. Some of the packages you would need to include accounting and booking software, email marketing tools, project management software and lots more.

With accounting and bookkeeping software, you will be able to track all expenses and income made in just one system. Beyond that, you would have your financial records and reports all in one system, which would make the taxing period stress-free. With email automation software, you will be able to keep in touch with your existing and new customers with just a few tools. This way, you could communicate with a lot of people at a time and set the right time to send messages to them.

With project management tools like Asana and Trello, you would be able to manage your business tasks, schedule time to complete tasks, and make plans accordingly. All of this software and more are needed by a small business owner and thus should be made available right on time.

11. Grow your Team

You would also want to decide if you wish to run every aspect of the business alone or employ other hands. This, most times, however, will depend on the kind of business you are doing and how small you’re setting up the business.

While you can hire full-time workers, you can also begin by using freelancers to complete some business tasks. If you will be hiring employees, then you should allocate time for proper onboarding and recruitment activities.

Either way, identifying your business needs and getting the right talents, if need be, is crucial. You might, therefore, want to consider employing individuals to manage sales, marketing, product design, and engineering, etc as the case may be.

12. Establish your Online Presence

For every business out there today, whether physical or remote, establishing an online presence is crucial. With it, you would be able to get your product or services to a lot of people, gain attention in the online world, meet several potential customers and ultimately generate more sales.

To establish your online presence, you should begin by creating a functional website where you can display your product and provide information about what you do. While this website should preferably be a simple one, potential customers should be able to view your product, make orders and pay for goods and services through it.

Beyond that, the website should be easy to navigate, contain clear and concise information and provide the contact details of the business. Apart from having a functional website, you would also want to establish your online presence on social media handles like Facebook, Instagram, Tiktok, Linkedin, Twitter, etc.

While you don’t have to use all these social handles at a time, understanding the ones that are needed and crucial to your business is key. For example, if your business provides services, then LinkedIn is an app that must be included. If you sell a particular product, then Instagram, Facebook, and Tiktok must not be overlooked.

13. Decide on the Payment Options

There are a variety of ways in which you can receive payments for your product or services. These include cash, credit and debit cards, checks and lots more. Whether your businesses serve your local community, nation or international client, you would want to devise an effective and stress-free option to receive payments for goods and services.

With payment options like Wise, PayPal, Stripe, and Payoneer, you would be able to receive payment across many countries. Beyond that, you would also want to consider a payment platform that could be easily integrated with your website since more customers would want to shop and make payments from there.

14. Market your Product or Service

Marketing your product or service is an important aspect that must not be omitted. In fact, with the right marketing strategies, you would be able to get your business to a lot of audiences and generate a good income in no time. You would, therefore, want to focus on both online and offline marketing and also organic and inorganic ones.

By advertising with flyers, attending local events, participating in local trade fairs, etc., you would be able to reach potential customers offline. However, with social media marketing, email marketing, influencer marketing and lots more, you would be able to reach a wider audience from different parts of the world.

With social media marketing, you could be involved in organic advertisement. This way, you don’t need to invest capital to reach customers. However, you would be required to dish meaningful content, showcase your products and services on social media handles, etc, to reach an audience. With inorganic ads, you would need to utilise some funds to promote your product on social media handles.

In either of the marketing strategies that you choose to use, understanding how they work is vital. Moreover, you might want to consider using two or more marketing options at a time.

15. Reinvest in the Business and Grow

As your business continues to grow and expand, understanding strategies that work for your business is key. You are, therefore, required to track and keep a record of every marketing, branding, pricing option, etc., that works best for your business.

This way, you would determine what you need to improve on, the ones you need to discard and those that work effectively for your business. With that, it becomes much easier to grow the business and remove every possible hindrance.

Beyond that, you would also want to reinvest more in the business as it generates more revenue. You should recognise the areas of the business that need more capital to boom and consider allocating more funds to them as they become available.

Incorporate Your Company with Incorpuk Today

If you are wondering how to register your business in the UK, worry no more. At Incorpuk, we help you file accurate information when you register your company through us. We will also help you with incorporation articles, a registered office address, and all you may need to register your company in the UK. Contact our team if you seek any information; we will gladly assist.

Conclusion

No matter the type of business you wish to start, following the right procedure is crucial to beginning the business on a good note. Beyond that, you would want to ensure you put in place the necessary requirements, tools, resources, etc, as you start the business. This guide, therefore, explains the 15 important steps to start your small business in 2024. Do you have any questions about how to start your small business? Kindly contact one of our experts here for help today.