The Initial Ten Stages of Launching a Company
Many individuals seek my assistance in crafting a comprehensive business plan when they have an idea for a company and are looking for a freelance writer or business consultant.
Many would-be company owners mistakenly believe that penning a business plan is the initial and most crucial stage in launching a company. During the beginning stages of a business, when everything is still in its infancy, this is probably one of the last things anyone wants to do.
If you are one of those courageous people who has always wanted to start a business but has never known how, then this article is for you. In order to get off to a good start and avoid typical mistakes, here are ten practical lessons learnt the hard way. (Remember that these are aimed at companies that require tiny to no initial investment.)
one. Read
Robert Kiyosaki's Cash Flow Quadrant, Guy Kawasaki's The Art of the Start, David Gumpert's Burn Your Business Plan, and Michael Gerber's The E-Myth Revisited should be read in that order before anything else.
2. Have a fantasy
Spend some time building your company "spiritually" before you get down to the physical details. Imagine it as a first-rate enterprise in its optimal form. Take a look, feel, taste, sniff, and listen at it.
If you want to persevere through the challenges of entrepreneurship, which is one of life's most challenging endeavors, you need to be constantly energized and excited by your business.
Jot down your aspirations; this is not a business strategy, but rather a collection of thoughts and ideas. An official business strategy will be developed at a later date.
3. Investigation
Do your homework to make sure your idea can make it before you put a lot of resources into it.
At this stage, it's important to ask and answer numerous questions, like these: Could your idea find success in the market? Can you provide any proof for this? Please tell me the problem that your proposal addresses. Could it spread a virus of ideas? Can you tell me who else is trying this and what their results are? On what counts, you'll make a change? Can you easily identify your target audience? Will this concept be irrelevant in a few years, or does it have the backing of current market trends? Is financing necessary? How much and when is it due, if at all? What technological advancements can the company take advantage of? In terms of running the company, what abilities are you missing?
Also, keep in mind that sometimes the best research is practical experience; for example, you could launch your company on a small scale to gauge market reaction.
Step 4: Establish an Entity and Check for Legal Compliance
If you're certain your idea will be successful, the next step is to establish a legal framework for your company. A legal entity is necessary for four reasons: to maximize tax savings, to decrease liability, to maintain control, and to be legitimate.
The four most common types of business entities are sole proprietorships, limited liability companies, S-corporations, and C-corporations. To choose the right entity for your needs, consult with a lawyer and a certified public accountant (CPA). If you handle all the paperwork on your own, it will cost around $125. However, if you hire a professional or an attorney, the cost can range from $200 to $500.
Make sure you're in full compliance with the law in every respect, not just with your entity. As an example, it is highly recommended that you get Worker's Compensation Insurance if you have any employees. With the guidance of an experienced attorney, you can confidently face all of the legal challenges that lie ahead.
5. Make Money.
Do not skip this step at any cost. Far too many amateurs attempt to juggle too many tasks at once, and their overemphasis on image causes them to waste time and resources on things like advertising, marketing brochures, logo and branding work, etc. All of those things have a place, but the money the company makes should cover them.
You should be very realistic when it comes to putting your dreams into action now that you've had a chance to dream. In order to make money, you have to do anything, even going door-to-door. You can't make your wildest dreams come true, no matter how motivating they are, unless you have the means to do so.
6. Establish monetary frameworks
Your prudent management of the cash flow you have now is of the utmost importance. Keep meticulous records of ALL financial dealings, no matter how insignificant. Tax time will be when you're glad you did it.
A lot of people use Quick Books and Quicken for their accounting needs. A good bookkeeping service, on the other hand, can assist with record keeping, payroll, and quarterly taxes.
7) Get the ball rolling on the operations manual
By outlining simple, step-by-step instructions that anyone can follow to complete any task, an Operations Manual allows you to leverage your efforts and create an exact replica of yourself.
The single most important thing you can do for your company is to institute a system, and the time to do it is now. Of course, systems will be improved with time; however, it is essential to document them and keep them updated.
Hiring a professional writer to draught your Operations Manual is another option to think about.
8. Develop Advertising Frameworks
Without first calculating the potential returns, many newcomers rush to invest in advertising. Some have argued that marketing is time-consuming and expensive, while advertising is the opposite.
In the early stages of a company's existence, when resources are few, it's wise to focus on marketing rather than investing in other areas. Commercials don't do much good and cost a pretty penny. Startups should be extremely careful with their spending and meticulous with their money management.
Billboards, radio and television commercials, flyers, ads in the yellow pages, and so on are all examples of advertising. Whether it's telemarketing, door-to-door sales, customer referral programs, etc., direct selling is typically at the heart of marketing.
Your company should already be experiencing viral marketing if your idea and delivery methods are top-notch. Whatever you do, make sure you stick to what works and document your systems in an Operations Manual.
9. Systematize Improvements, Replace Yourself, Repeatedly Refine, and Document Devotionally
During the first year or two, you will probably be responsible for the majority of the work. You can learn and iron out the kinks in this, but it won't work when you're ready to expand.
Now that you have an Operations Manual, it's time to start recruiting and training your successor. Consistently oversee and refine the systems after they're replaced.
You should also record every single detail of your business with utmost seriousness. As an example, if your company engages in door-to-door sales, it is important that all salespeople keep track of the number of doors they knock on, the number of people they speak to, and the number of sales made.
You can't tell what's working and what isn't without actual numbers, and this data will be priceless as you try to improve your systems over time.
10–Construct a Company Platform
The majority of individuals believe that the last stage of starting a business should be initiated first. Investors will want to see a track record before investing anyhow, so doing it after the first nine steps will give you a better chance of doing it correctly with actual numbers, facts, and statistics instead of based assumptions, which is why it should come last.
After enduring many hardships, this presents you with a chance to reestablish a connection to your aspirations.
A business plan, like an operations manual, can always be ghostwritten by an expert.
