A Step-By-Step Guide on How to Start A Business

Have you always wanted to start a business of your own, but you don’t know how to go about it? I always had so many business ideas, but I had no clue about how to start up. This all changed for me once I joined a startup incubator, where I was coached on the steps to successfully start a venture. Since it worked for me, I decided to share these steps with anyone who wants to become an entrepreneur! The purpose of this article is to help aspiring entrepreneurs finally start that dream venture of theirs.

I have kept this article short with the steps to start a business mentioned in a concise manner.

The Roadmap to Start a Business:

Step 1: The Problem & The Solution

It is important to find a problem that customers face, are willing to pay for and has a big enough market size. Your solution must be one that is desirable, feasible and viable from a customer, product and investment point of view respectively.

A few ways to go about this are:

• Fix a problem better than any of your competitors
• Solve a problem that you have faced
• Use your industry knowledge and experience to solve a problem

Step 2: Lean Business Plan

Lean startup is the process of developing a product or company based on the expressed desires of the market. It uses validated learning, which is a process by which companies assess consumer interest through the Build-Measure-Learn feedback loop. I would recommend using the Lean Canvas, which is a 1-page business model template that helps you deconstruct your idea into its key assumptions.

Key points to cover in your business plan:

• Strategy (UVP [Unique Value Proposition], Problem, Target Market, Competition)
• Tactics (Sales Channels, Marketing Activities, Key Partners, Resources, Core Team)
• Business Model (Revenue Streams, Key Expenses, Sales Forecast, Cash Flow Forecast, Expense Budget)
• Schedule (Tasks, Milestones, Dates, Responsibilities, Budgets)

Step 3: Validate Your Concept

This is the stage in which you test the assumptions of your business model. Based on the data you collect through primary and secondary research, your business model assumptions can be iterated. This step is crucial to ensure that you create something that customers actually need and want.

Ways to validate your ideas are:

• Talk to your potential customers in real life to understand:

1. Is the problem really a pain?
2. Does your solution solve their problem?
3. What is the best way to sell your product/service to them?
4. Would they pay for your product/service?
5. How much are they likely to pay for your product/service?
6. What are the products/services that they currently use to solve the problem?

• Conduct a competitive analysis of your competitors
• Create your MVP [Minimum Viable Product]

Step 4: Figure Out the Pricing Model

Based on customer interviews and a study of your competition, build a pricing model for your business. The aim should be to increase the potential lifetime value of each customer.

The best way to go about this is:

• Test to find the right price of your product/service based on what your potential customers are willing to pay

Step 5: Brand Positioning

It is important to design the company’s offering and image to occupy a distinctive place in the minds of your target customers. Figuring out how to differentiate yourself in a crowded marketplace is key.

Key branding elements to consider are:

• Brand to stand out
• Brand to clarify your vision
• The right domain name

Step 6: Making it Legal

Look into the industry’s specific rules and regulations from a compliance point of view. Pick the right business structure for your business and legally register your company to comply with the laws of the country in which you plan to establish your business.

Important points to look into are:

• Choosing the right business structure based on the needs of your business
• Picking a name for your business

Step 7: Building Your Product

Ideally, aim to build the first version of your product/service by bootstrapping (building your company from ground up with your personal savings).

A few pointers to keep in mind while building your product are:

• Start as soon as possible by reaching out to potential customers and designing a landing page for your business
• Start small by focusing on the most important features
• Use a project management tool to keep track of progress
• Keep core software development in-house (applies primarily to SaaS [Software as a Service] businesses)
• Work and hire remotely to save on expenses

Step 8: Develop the Go-To-Market Strategy

Experimenting with a combination of paid and organic marketing channels (Social Media, Email Marketing, Paid Advertising, Public Relations, Paid Search, Content Marketing Blog, Analytics & Reporting, Website Design, Affiliate Partnerships, Mobile Marketing, Display Ads, Referral Marketing, SEO [Search Engine Optimization] amongst other channels) is the best way to find the right mix that makes sense for your business.

A few suggestions to manage your strategy are:

• Handle your own PR (Public Relations)
• Join relevant online communities and discussion groups
• Choose the content marketing route by maintaining a blog
• Experiment with different advertising channels to see which ones give you the most value for your money
• Don’t forget the value of real-life marketing products for your customers
• Launch your early stage MVP [Minimum Viable Product] to get feedback from your early customers to shape the future of your product/service

Step 9: Tracking Metrics & KPIs [Key Performance Indicators]

Tracking metrics can help you make informed decisions, keep a tab on the state of finances, improve your performance, track company goals and figure out when to approach investors to raise capital to grow your business. Regular plan review meetings are highly recommended to review the key numbers, major milestones and long-term strategy.

A few KPIs [Key Performance Indicators] that investors are particularly interested in analysing are:

• Revenue Growth Rate
• User Growth Rate
• LTV [Customer Lifetime Value]
• CAC [Customer Acquisition Cost]
• Average Sales Cycle Length
• Gross Profit Margin

Step 10: Funding!

Now for the final step! We’ve reached the million dollar question, “How do I get funds to grow my business”? To start off, it is advisable to bootstrap your company. If this is not practical, asking friends and family to help out is the next most feasible option.

Once you have established Problem-Solution fit and Product-Market fit, it is now the right time to raise funds to accelerate growth by Scaling your business. Getting investors on board at this stage would speed up both your learning and Go-To-Market strategy. It would now be time to create a detailed financial forecast to pitch your company to investors.

Hope you enjoyed reading this article and feel free to message me on LinkedIn if you would like to discuss any of the points mentioned here.