9 Steps to Help You Start a Startup (part I)

 

If you’ve never started a business, the first time can be a little scary. Especially because it takes a lot of hard work and planning. On top of this, only about half of all businesses survive five years or longer.1

 Luckily, there are 9 basic strategies for startups you can follow to help get your company up and running:

 1. Start with a Great Idea

Your first step in learning how to start a business is to identify a problem and solution. This is because successful startups begin from business ideas that fill the needs of a group of customers. But your idea doesn’t always have to be a new one. You can update existing products or services in a way that’s better for the consumer. This can be as simple as:

 Changing the product’s appearance

Adding a new feature

Finding a new use for a product that customers already love

For instance, Apple started from Steve Jobs’ original idea for a computer and has since created enhanced versions that better fit the market. They’ve also continued to evolve newer products like iPhones and iPads, making them more useful with each update. One example is how they’re adding a keyboard for iPads that’ll make them easier to use like a laptop.2 All these innovations by Apple led to them being worth of over a billion dollars.

 

2. Make a Business Plan

Once you have an idea, you’ll want to start building a business plan that describes your products and services in detail. It should include information on your industry, operations, finances and a market analysis.

 Writing a business plan is also important for getting financing for your startup. Banks are more likely to give loans to companies that can clearly explain how they’re going to use the money and why they need it.

 3. Secure Funding for Your Startup

The cost of a startup is different for every business owner. However, no matter what your costs are, you’ll likely need to get startup financing from:

 Friends and family

Angel investors

Venture capitalists

Bank loans

You can also apply for a business credit card. Many companies offer 0% APR promotions, which means you won’t pay interest on your purchases if you pay off the balance before the end of the offer period. We’ve partnered with Fundera, which put together a list of the top credit cards offering 0% interest rates.

 If you don’t get the right amount of funding or can’t raise money for your business, you’ll risk not being able to pay your operating costs. This may cause you to close your doors. In fact, it’s estimated that 29% of startups fail because they run out of money.3

 To make sure you get the right amount, you’ll want to estimate your costs and cash flow, including the interest rates on your loans. Once you do that, you can use QuickBooks or FreshBooks to track your expenses and help you stick to a budget.

 4. Surround Yourself With the Right People

There can be a lot of risk in starting a business. That’s why you’ll need essential business advisors to help guide you along the way, like:

 Attorneys

Certified Public Accountants (CPAs)

Insurance professionals

Bankers

Building the right startup team is especially important in the early stages of small businesses. This means you’ll want to carefully select your:

 Co-founders

Contractors

Initial employees, including remote workers

5. Make Sure You’re Following All the Legal Steps

From designing your product to setting up your workplace, opening your dream startup can be a lot of fun. But before you officially enter the market, you’ll want to take the right legal steps to give you the best chance at success, including:

 Applying for a business license

Registering your business name

Getting a federal tax ID number

Filing for a trademark

Creating a separate bank account

Familiarizing yourself with industry regulations

Building contracts for clients and others you plan to work with

Imma Gutierrez- "Ayudo"