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How to start a business – part 4

How to start a business
How to start a business
Microsoft, 2014

This article is fourth in the How to Start a Business series. Please read Part 1, Part 2 and Part 3 before proceeding.

Step 6: Choose a business location

Choosing a location is one of the most important steps in starting a business. In fact, many business locations are chosen before an entrepreneur even knows what type of business she would like to start.

For instance, a working parent may not know what kind of business she wants – only that she wants to work from home.

Or a corporate cubicle dweller may know that the abandoned building he passes on his way to work every morning would be a great spot for something – exactly what, he doesn’t know.

According to the SBA’s Tips for Choosing Your Business Location, there are several factors that go into deciding were a business owner should set up shop.

These factors include: consistency with brand image, competition from neighboring businesses, labor market potential, plans for future growth, proximity to suppliers, safety, and zoning regulations.

Step 7: Draft a business plan

Writing a business plan is so intimidating to some new business owners that they would prefer to skip this step altogether.

There are even some experts that recommend against writing a business plan, instead advising entrepreneurs to just dive right in and get started with task of operating the business itself.

The problem is that many successful business owners do well because they think outside the box. They come up with ideas and approaches to problems that are truly innovative.

These unique ideas can also be difficult to articulate to potential investors and lenders who are only willing to put money behind solid market research and business strategies.

A business plan requires that the business owner craft her message in a way that flows easily to anyone to whom she needs to convey goals, plans, financial projections, and company organization. This makes writing a business plan a crucial step in starting a business.

More on how to start a business

The final steps in starting a business include registering for state and local taxes and obtaining business licenses and permits.

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