How to Start a Business in 8 Steps: From Concept to Launch (2024)

Starting a business can be extremely exciting. But figuring out how to start a business can also feel overwhelming—particularly if you don’t have a clear sense of how to get from where you are now (an aspiring entrepreneur) to where you want to be (a successful, established one).

The good news is that there are clear steps to follow. Once you know these steps, you can create a road map that will take you from asking, “What do I need to begin a business?” to questions like “How did I get so successful?” or “Why was I ever worried?”

Here, we outline everything you need to know—whether it’s about how to start a business online, at home, with no money, or any other situation.

1. Finding your business idea

So, how do you start a business? The first step is coming up with an idea. You can’t start a business without a great one. You don’t want to throw spaghetti at the wall and see what sticks; instead, you should aim to take “a structured approach to ideation,” says business coach Yael Tamar.

What are your strengths? What kind of business do you want to build? What kind of customers do you want to work with, and which of their needs can you fulfill? It’s important to answer these questions because the key to a successful business idea is finding the intersection of what you want to do and what your ideal customers need.

“It's crucial to align your venture with both your passions and market demand,” says Jeff Mains, CEO of business growth consultancy Champion Leadership Group.

“Start by identifying problems you're passionate about solving,” Mains says. “This approach ensures that you have a genuine interest in your business, which is essential for long-term success.

“Also look for gaps in the market by analyzing current trends and customer needs,” he says. “Combining your passion with market opportunities increases the likelihood of finding a viable and fulfilling business idea.”

2. Conduct market research

Once you have a business idea you want to pursue, it’s time to do some research—more specifically, market research.

“It involves gathering data on customer demographics, conducting competitor analysis, and studying industry trends,” Tamar says. “This research helps validate business concepts and informs strategic decision-making.”

It can also help in the long-term, giving you the insights you need to lay the foundation for a successful business. “Effective market research also minimizes risks and ensures your business is well-positioned to meet market demands,” Mains says.

So, how do you perform the kind of market research you need to set your business up for success?

“Begin by identifying your target audience and understanding their pain points, preferences, and behaviors,” Mains says. “Use a mix of primary research, such as surveys and interviews, and secondary research, including industry reports and competitor analysis.”

In addition to audience research, you’ll also want to check out your competitors to see what they’re doing, what’s working (and what isn't), and how you can differentiate your company from others in the space—and grab your target audience’s attention in the process.

3. Create a business plan

Once you’ve come up with a business idea—and you’ve done the market research necessary to ensure it’s viable—it’s time to create your business plan.

There are a few different elements to a business plan. “Start with a clear executive summary that outlines your business idea, mission, and vision,” Mains says. “Follow this with a detailed market analysis, showcasing your understanding of the industry and target market.”

Plus, you’ll want to outline your business structure, product or service offerings, marketing strategies, and financial projections. Why? Because “a strong business plan not only guides your strategic decisions but also serves as a crucial tool when seeking funding from investors or financial institutions,” says Mains

Bottom line? “It integrates findings from market research into actionable steps aligned with long-term business objectives,” Tamar says—making it a must for starting, launching, and sustaining a successful business.

4. Take care of logistics

Next step on the list? Taking care of the logistical side of starting a business, which include:

  • Choosing a business structure
  • Registering your business
  • Obtaining necessary licenses/permits
  • Getting necessary insurance
  • Opening a business bank account

From a logistical perspective, there are no universal solutions when starting a business. Much will depend on the type of business you’re trying to start.

For example, if you’re focusing on how to start a small business at home and you’ll be the only employee, you may not need physical liability insurance (since there won’t be any other employees working in your home). But if you’re figuring out how to start an online business—and intend to operate from a commercial space with other employees—physical liability insurance is generally a must.

Same thing goes for business structure (for example, being a sole proprietor or registering an LLC), business registration, permitting…pretty much all of it. Make sure to do your research and ensure you take all of the logistical steps needed to legally establish your business.

5. Find your funding

Funding is often where budding entrepreneurs get stuck. If you're wondering how to start a business without money, in full transparency, the answer is…you can’t. Whatever kind of business you’re starting, you’re going to need some money to get things off the ground.

But how much money you need to start a business—and where you ultimately get that money from—can vary widely.

In general, there are a few different funding options for starting a business, including:

  • Self-funding. If you have money—and you’re willing to spend it on your entrepreneurial dreams—self-funding is a great option. (Particularly since you won’t have to pay any interest or give up equity in your company).
  • Business loans. Loans are another option for getting the capital you need to start a business. The process of how to get a loan to start a business can be challenging; often, traditional lenders are wary of lending to brand new businesses. But there are loan programs out there that cater to start-ups—so doing research to see if you qualify is definitely worth it.
  • Credit cards. If you can’t get a loan, credit cards (personal or business) can help to cover expenses as you build your business.
  • Business grants. There are also a variety of grants out there that provide capital to qualifying applicants. For example, there are grants for women-owned businesses and minority-owned businesses. Grant competitions can also be great if you have a particularly interesting or innovative business idea. So, if you fit into any relevant grant categories, you’ll definitely want to explore how to get a grant to start a business.
  • Friends and family. Asking friends and family to invest in your business is also an option. Just keep in mind that introducing money into personal relationships can be challenging—so if you do take money from loved ones, make sure the terms and expectations of the investment are extremely clear on both sides.
  • Outside investors. Depending on your business model and industry, you may also be able to pitch outside investors, like venture capital firms or angel investors—which is more common in certain industries, like tech.

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6. Get your systems in place

You’ve got your funding. You’ve got your business plan. But before you move forward in bringing your business to life, it’s important to lay the foundation for success by putting the right systems and processes in place.

Establishing systems and processes from the get-go can help make your business launch and growth significantly more smooth—and also can save time, energy, hassle, and money.

For example, before you start selling products, you’ll want to set up a secure online payment system. Before you start billing clients, you’ll need an invoicing procedure—and the software to implement those procedures. Before you start marketing, you’ll want to have a strategy and system in place to ensure you reach the right customers at the right time.

Systems and processes help you get organized—and if you want your business to be successful, you’ll want to take the steps to get organized before you launch.

7. Build your brand

Once you’ve got the backend of your business in place, it’s time to start thinking about the front-facing elements—the elements that make up your brand.

In order to launch a business, you’ll want to have certain branding assets in place, including:

  • Logo
  • Brand color palette
  • Brand fonts
  • Brand voice
  • Website
  • Social media profiles

Building a brand helps to create a consistent experience for your customers and tell the story of your business to your target audience. “This is important for gaining recognition,” says Keith Donovan, a startup advisor and Founder of Startup Stumbles.

8. Launch and market your business

You’ve figured out how to begin a business. You’ve got all the pieces in place. Now it’s time to actually launch your business—and market that business to connect with your ideal audience.

“Making sure people know about your company is crucial,” Donovan says.

How you market your business is up to you. For example, “actions like creating social media pages, running advertisements and cultivating helpful content introduce potential buyers to the business and what it offers,” he adds.

You could also market your business in other ways, like:

  • Local events
  • Influencer partnership
  • Print advertisements
  • Billboards
  • Cross-marketing with other businesses
  • Email marketing

It’s not so much about how you market your business; it’s about how effectively you do so that will determine whether your company thrives or falters. Whatever methods you decide to go for, just make sure you’re invested in creating and implementing a marketing strategy that allows you to connect with your target audience and convert them into paying customers.

How to Start a Business in 8 Steps: From Concept to Launch (2024)

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