“A Big Business Starts Small.”
This quote from Richard Branson perfectly sums up the importance of starting small. After all, any big venture started from a small beginning and that also applies to how you start your small business.
A lot of people nurture a dream about owning their business. They have ideas and concepts that they want to see become reality and want to work on their own terms, pace and time.
However, if you’re still thinking about starting a small business or you’ve steps on how to start a small business but don’t know where to start or whether it is a really good idea, at all? Then worry not. The future of small business is quite bright, so bright that it nearly contributes about 60% in most countries GDP and it is expected to add $2.3 trillion to Global GDP Growth by 2024.
Intrigued much? Want to know how to start a small business online?
Then again, starting your own small business does seem to be a task full of complications and difficulty at first, but if you have a set of steps to follow that will give you the confidence and determination to take the big leap. So, here we are, with some effective steps to start a small business that will help you in your entrepreneurial journey. This and we’ll also help you find answers to:
There are so many things that you should know in order to understand how to start a small business. Investment, finances, insurance etc… but relax, if you need a direction, detailed insight into the steps involved into starting a small business, then here we are providing you with 12 steps on how to start a small business:
A business strategy is a documented plan on how a business is going to achieve its goal. The goal can be about reaching 1 millions users, fulfilling customers needs & expectations, creating a niche for yourself or be better than your competitors or other goals. This is an important and foremost thing before you go about starting a small business as not only it gives you a concrete path to walk on but also helps you trace your success, performance or areas of improvement against the set target you’ve made in your business strategy. It can have these points or more:
When starting business, make sure you are aware about the type of legal structure you want for your company. As this not only influences on how much you pay in taxes, or the legal formalities you’ve to file for or take licences but the amount of investment you need to make or even the possibility of raising profit also depends on it. Here are few of the major business structure that you can choose from:
(a) Sole proprietorship
The businesses which are owned by one person who runs the business on his own.
Sole proprietorship advantages
Sole proprietorship disadvantages
It's a type of business where two or more people share the ownership of a single business along with how they’ll share the profits, liabilities and assets and how disputes, if any, will be resolved or how partnership will be dissolved as outlined by a legal document.
A business that is in the eyes of law is seen as a unique entity, separate from the people who own it. There are three types of corporations: C-corporation, S-corporation and Limited Liability Company.
C-corporation: it is taxed separately from its owners and allows a limited liability to the owners and thus more risk-taking and potential investment.
S-Corporation: Also known as subchapter S-corporation gives limited liability to the owners as it does not pay income taxes and the earnings and profits are treated as distributions. Shareholders involved in this corporation must report their income on their individual income tax returns.
(d) Limited Liability Company
This type of business is a mix of structure that provides the limited legal liability of a corporation along with the operational flexibility of a partnership or sole proprietorship. This requires you to file paperwork.
Limited liability company advantages
Limited liability company disadvantages
Remember whatever the business structure you decide to go for, always base your choices on three main factors: liability, taxation and record-keeping.
Familiarize yourself with the market you want to step in. A competitor analysis is important because it will not only ensure you can enhance your own business goal after considering market trends, help you identify how you can create a better business strategy than your competitors and much more. It can also provide you insights into your own best practices, business growth plan and its potential flaws thus a chance to outgrow not only your competitors but also your own goals. Ask these questions to narrow down your competitors:
Like an effective business strategy helps you stay on track of your success path, similarly identifying a target market helps employ better communication strategies either through products, marketing or services. Additionally, when you know who you are selling your product or services particularly, it helps you organize the group in a cost-effective and time-effective manner. So figure the gaps in the needs of your customers and fill it via in-depth market research or exploring industry trends, reviews. Ask questions like:
Do you know Facebook was initially known as TheFacebook? But it lost “THE” and renamed itself to just Facebook. What do you think sounds catchier “TheFacebook” or “Facebook”? You have invested a lot in your business idea whether it’s money, time or efforts, however, if you can’t give it a name that not only distinguishes your business from others but also an image that is etched in the mind of your customers forever. Then what’s the point? So go for names that:
Before you start a small business, you do need to seek and file appropriate business-formation paperwork, permits and licences to perform your particular business activity. For instance, Payment Card Industry Data Security Standard (PCI DSS) is one of the major documents that you need for involving in any kind of online financial transactions. Other than that, following are few other legal formalities that you need to do to give your online business solid legal foundation:
Insurance is one of the nicest things you could do for your small business other than getting online and branding it. This is something that acts like a safety net for your business amidst unforeseen circumstances. However, always ensure that not only you’re getting an insurance policy that suits your business but also something that you can afford.
This one of the steps that you can’t take lightly as it is one of the essential ones. Yes, recording business transactions might seem like a herculean task but follow the below process to make your recordkeeping smooth and a worriless process:
(a) Select an accounting method
Here are the accounting methods you can choose from:
(b) Decide How You Will Record Transactions
How do you plan on recording transactions in your books? Maybe you’re considering:
(c) List All the Accounts
Often called Chart of Accounts or COA where you make note of when the money is going into your business as well as all of the money going out. Generally COA has these 5 sections:
(d) Open a Different Bank Account
You can’t have personal and business funds in the same bank account. To avoid circumstances of accounting blunders, inaccurate tax filings, and overspending, open a separate bank account for business and personal purpose.
To open a business bank account, you typically need the following information:
(e) Determine the Payment Method
Be careful when you decide to choose your payment methods & policy and set clear, simple and comprehensible customer payment policy for your products or services. This may include:
(f) Track Your Expenses
Recording and tracking your expenses is crucial not just for accounting but also it helps you monitor any discrepancy during the transaction period. So make sure, you keep safe these:
Keeping the records of your expenses gives your business and book a neat and clean image.
There are several website platforms that you can pick for your small business but you need to make a sound decision, considering your website is your first impression that you give to your potential customers. Based upon how your website looks and functions, they will form an opinion about your business, so ensure it’s a positive one. Design a small business website that:
Having a brand strategy is all about shaping your existing and potential customers’ perspective about your products, services and overall company image and that depends on how you communicate with them. Brand strategy isn’t a complex matter but is quite important as:
These are some of the major branding key elements:
Wanna learn how you can position your brand well amongst your competitors? Ring JanBask Website Development Services to know the most cost-effective and compelling way!
Going online with your small business is not just about “designing a small business website that is nice looking and working site with your business name, contact details, and some social media links.” It is more about giving your small business an online version that is easy to find and is with informative, highly functional, secured and responsive web design. So get a website designing company for your small business website that gives your visitors greater user experience and boost your conversion rate. After all, over 2.14 billion people globally are expected to buy goods and services online by 2021, while the global e-commerce market is expected to see a CAGR of 16% between 2021 to 2026. You shouldn’t be missing out on such great numbers!
Here’s the list of one of the seven popular online business to choose from:
Hey, do you know by the year 2040, it’s estimated that 95% of all purchases will be through eCommerce? Willing to give it a go? Let’s get going with the best eCommerce website development services for launching a custom, creative and compelling eCommerce website.
A digital marketing plan just like branding is essential element to attract more customers, convert leads into sales and for brand awareness via digital channels like search engines, email marketing, and social media. Other benefits include
Some of the key elements of Digital Marketing Plan:
So what are you waiting for? Go on, take the plunge and start your entrepreneur journey with our effective steps on how to start a small business online.
Congratulations you have made a name for your brick and mortar in the business world! However, don’t just be satisfied yet because this is not the real ‘success’ as you’re still missing out on a lot of numbers of potential customers that are either hooked to their mobile phones, tablets or other digital device or platforms. Statistically speaking, when you don’t make your business online, you’re missing out on 4.66 billion active internet users globally which is 59.5% of the global population-- of this total 4.32 billion are connected via mobile devices. The world is going digital and more and more people are using the internet not just to find or explore products or review them, but to actually buy them and share them if they like what they got.
Of course, there are certain risks involved with the online business avenue like cybersecurity or marketplace saturation. However, when you look closely, you will notice the ups overpower the downs. Here’s the list of nearly 14 reasons that tells you to make your small business go online:
So you know how to start a small business but do you know your website can be the 24/7 representation of your small business, so why not create a lasting first impression? Want to know how? Reach out to a website design agency!
Now you know how to start a small business online. And, we can’t emphasize enough why you need a website for your small business and why should you design a highly-functional, secured and responsive web design for a greater user-experience and higher conversion rates. Even though you have a small business and we agree every business has its own needs and requirements regarding the kind of website they want. Still, most businesses has some common web elements that adds to the overall cost of website development such as:
*This is an estimated amount, the real cost of designing a website for small business can vary depending on your business type, functionalities, business goals or even where your business is located
Below are the estimated rates for hiring a freelance web developer.
The typical cost of getting your website developed by a web development company will be:
Moreover it’s not just about prior knowledge, money or even efforts involved when it comes to designing a custom web design for a small business. Because the costliest thing that you will invest in designing a website for a small business is your brand image and how you want your prospects to see it. Affordable web design for small businesses just doesn’t mean you’ll compromise on quality. So, we recommend you go for a professional web development company rather than doing it yourself or hiring freelancers, especially if the quality of the website matters to you. After all, the business that you had finally established is the result of years or months of hard work and determination, so why let it bite dust over a few dollars.
So choose wisely!
Still confused about how to have an affordable web design for small business or how much exactly it costs to develop or redevelop a website? Check out this blog to Know Everything About How Much it Costs to Develop & Redevelop a Website and have no doubts. Psst… you can thank us later!
Starting a business, even a small business can be a nerve-wracking experience but with right guidance and effective steps you can enjoy this new adventure that you have set upon. Yes, you will come across many challenges and roadblocks but have faith in yourself, in your business idea and constantly learn from your mistakes. Because once you do that, you will realize it is not only easy to start and run a business but can be so much fun too!
We hope this blog gave you an in-depth understanding on how to start a small business online and the reasons you should make your small business go online. We also shared some ideas on how to start a small business for the times when you have big dreams but are riding low on budget.
If you still have doubts or concerns about steps on how to start a small business online, the prosperity, growth of starting a small business online, our consultants are ready to hear you! Or share your own steps on how to start a small business or successful story of starting an online business… we are all ears!