Start a Business
Summary of Typical Startup Steps
(Date posted: November 17, 2009)

This page helps you start a business by providing a summary of typical startup steps. These steps are meant for a low-cost, low-risk, one-person business venture that sells services. (I think this type of business has the best chances of success regardless of conditions in the economy.)

Note: The 1-2-3: Small Business Startup section is meant to satisfy the needs of people with somewhat substantial resources who want to start a somewhat risky (but perhaps more profitable) business venture.

This summary of a small business startup is easier to review. Yet it has links back to the more complex and detailed Small Business Startup section mentioned above.

The steps in this outline are grouped into the following stages:

Stage 1: Selecting a suitable idea
Stage 2: Preparing the groundwork
Stage 3: Achieving the desired results

IMPORTANT

Before using this information to start a business be sure to read the following notice: Disclaimer

Stage 1: Selecting a suitable idea

Defining your requirements -- These are the needs, desires, abilities, resources, time limits, and risk limits the business idea should satisfy.

For more details see this page.

Finding a potential idea -- This business idea describes what service you intend to sell and who you expect to use or purchase it.

One way to find a suitable business idea is to review the page titles under the Ideas for a small business topic on another page.

Another way to find a suitable business idea is to first select an appropriate category, and then choose a suitable business idea within that category. Go to the Ideas for a small business by category topic on another page.

For more details see this page.

Reviewing the market -- See if anyone else is advertising a similar service in the classified advertisements of a newspaper serving your expected marketing area.

For more details see this page.

Stage 2: Preparing the groundwork

Refining the product -- Decide what features your service needs to attract and satisfy customers. These features should be based primarily on your own time and effort. Thus, they will have a low cost compared to the expected sales price.

For more details see this page.

Developing the sales program -- Normally you would use classified advertisements to solicit prospects for your services. Then you would use either telephone conversations or personal meetings to convert them into customers.

For more details see this page.

Designing business operations -- I recommend that you use a one-person, sole proprietorship type of business organization. Thus, you would perform most of the moneymaking activities yourself. However, you might need to hire casual labor (not employees) to assist you in certain jobs. Oftentimes a spouse would perform office duties. These duties might include answering the telephone, paying the bills, and doing the bookkeeping.

For more details see this page.

Listing the startup requirements -- You need to identify and list the startup requirements for your proposed business venture. These are the actions and objectives you should complete before starting actual business operations. It is especially important to identify all legal and insurance requirements for your proposed business venture.

For more details see this page.

Planning costs and expenses -- You need to minimize your startup costs and operating expenses. This will make your business venture profitable as soon as possible.

The Bootstrap Methods page in another section can help you reduce these costs and expenses.

For more details see this page.

Stage 3: Achieving the desired results

Being able to produce the product -- You must be able to deliver quality services. A quality service satisfies the needs and desires of likely customers at a price they can afford.

For details see this page.

Gathering the needed resources -- You need cash and other resources to start a business. The resources you need may include office equipment, office furnishings, job equipment, protective gear, and a personal commitment. This personal commitment is a promise to yourself to do whatever it takes to get the business started.

For more details see this page.

Setting up a home office -- A home office will make it easier for you to prepare for the start of business operations. To minimize startup costs, I recommend a frugal operating style at first. Thus, you might be using the kitchen table and chairs instead of having to purchase an office desk and chair. However, you probably should have a business checking account and a business telephone.

For more details see this page.

Setting up an accounting system -- Keeping with a frugal operating style, you might use a hand-written accounting system at first. This would consist of pads of journals and a ledger that you purchase from an office supplies store. To monitor and control your operating results, you might use a daily cash report. This would show beginning cash, cash receipts, cash disbursements, and ending cash. Ideally, this cash report would show a rising cash balance.

For more details see this page.

Completing the startup requirements -- You should satisfy all important startup requirements before beginning business operations. Of special importance are all of your legal and insurance requirements.

For more details see this page.

Starting business operations -- This means to advertise and sell your services, collect your fees, pay your bills, and carry on other routine business activities.

For more details see this page.)

Improving customer satisfaction -- After you have started your business and are making sales to customers, you might want to make certain improvements. The most important improvement would be to increase customer satisfaction. This is how customers feel about your services and your company. You can improve customer satisfaction by listening to their complaints and making any needed changes.

For more details see this page.

Increasing sales and cash flow -- After you have improved customer satisfaction and eliminated any operational problems, you are ready to grow. You can use various methods to increase sales and cash flow.

For more details see this page.

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