Ten Steps to Starting a Business - BMGT 110 6980 Introduction to Business and Management (2192)-conv

Learning Outcome
List and briefly describe the steps necessary to start a new business
Learning Resource
Ten Steps to Starting a Business
What you’ll learn to do: Describe the steps required to launch a small business
The information contained in this section describes best practices for launching a small business. The details,
agencies, and contacts necessary to become an entrepreneur will vary from state to state, so additional research
may be required for different circumstances. But regardless of your location, the steps detailed in this section
generally apply to most new businesses.
Launching a business from scratch requires detail and dedication.

Starting a business involves planning, making key financial decisions, and satisfying a set of legal requirements. These ten
steps can help you plan, prepare, and manage your new business.
Step 1: Write a Business Plan
A business plan generally contains the following elements.
executive summary
company description
market analysis
organization and management
service or product line
markefing and sales
funding request
financial projecfions
appendix
Step 2: Get Business Assistance and Training
Take advantage of free training and counseling services on topics ranging from preparing a business plan to securing
financing to expanding or relocafing a business.
Step 3: Choose a Business Locafion
Get advice on how to select a customer-friendly locafion and comply with zoning laws. Choosing a business locafion is
perhaps the most important decision a small business owner will make, so it requires precise planning and
research. Potenfial entrepreneurs should evaluate their demographics, assess supply chains, scope the compefifion,
determine how to stay on budget, learn state laws and tax requirements, and much more.
Here are some fips to help you choose the right business locafion:
Determine Your Needs
Most entrepreneurs choose a locafion that provides the most exposure to potenfial customers. There are addifional
less- obvious factors to consider.
Brand image: Is the locafion consistent with the image you want to project?
Compefifion: Are the businesses around you complementary or compefifive?
Local labor market: Do potenfial employees live near the business? What will their commute be?
Plan for growth: If you anficipate growing your business, look for a building that has extra space should you
choose to expand.
Proximity to suppliers: They need to be able to find you easily.
Safety: Consider the area's crime rate. Will employees feel safe alone in the building or walking to their vehicles?

Zoning regulafions: These determine whether you can conduct your type of business in certain properfies or locafions.
You can determine how property is zoned by contacfing your local planning agency.

Evaluate Your Finances
Besides determining what you can afford, you will need to be aware of other financial considerafions.