Building a new business takes a lot of work and planning. Here’s how to start.
Conduct Market Research
A critical step in starting any business is market research. Market research shows whether your idea can become a profitable, successful business. It gives you insights into how your business will perform and can help mitigate some risks associated with starting a new small business. Market research is made up of two types of research, primary and secondary information. Primary information is any information you gather directly from consumers. This could take the form of focus groups, surveys, telephone interviews, and questionnaires that you administer to your target market. Secondary information is any information you gather from external sources. This could take the form of government census data, research reports, polling results, and research conducted by other businesses in your industry or location. While gathering primary information is more time-consuming and expensive than secondary information, the best market research uses both primary and secondary information.
Write Your Business Plan
Preparing your business plan is important for defining your business concept and goals and is a critical step to helping you gain access to financing and additional resources for launching your business. The PA Business One-Stop Shop offers guidance about business planning, and you can visit your local SBDC to receive one-on-one counseling and assistance.
Secure Business Capital and Funding
The most common cause of startup failure is lack of financing (47%), according to a recent survey. Second to that is running out of cash (44%). Clearly, it’s never too early to start thinking about finances. You’ll need both sufficient capital and reliable cash flow to get your business off the ground. Business funding can take many forms. From applying for grants and loans to reaching out to an angel investor or setting up a fundraising campaign, there are many different strategies here.
Organize Your Finances
Keeping a business running smoothly demands organized, detailed financials. As you put these systems in place, you’ll want to open a business bank account and consider how you’ll handle your business accounting.
Establish Your Brand
Naming your business is an exciting step. A good name reflects your business identity, is memorable, and engages your target audience. Your business name will appear on your website, business cards, social media platforms, and more.
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