Starting your own business can be a tough but rewarding journey. If you’re thinking about making the leap and becoming your own boss, these are the three steps you don't want to skip. These will help you make things official, but they can also help you do that essential deep dive on the details and shape your plan so you can take the next steps to build your business.
Step 1. Market research
While you may feel gung-ho about your ideas, it’s always a good idea to infuse reality into the plan. Getting a good grasp of the lay of the land can help you sharpen your focus and see where the opportunities are. A few questions to ask:
- Who uses the services you propose, and how much are they willing to pay?
- Who are your competitors?
- What are the opportunities for growth?
Of course, finding this kind of data can be daunting, but places like the James J. Hill Library in St. Paul can help you figure out the resources and data you’ll need to get that complete picture. This nonprofit also offers free monthly classes for startups.
Step 2. Create a business plan
Whether you’re launching a service from your home office, or opening a manufacturing facility, a business plan is a must have for any entrepreneur. This should describe your services and products, along with your objectives, marketing plan, management structure, finances and a plan for growth. Keep the business plan and update it regularly. This living document can be your roadmap to success, or help you get back on course.
Business plans are also essential when it comes time to meet with investors and bankers. If they see you have a well-thought-out concept backed with research and hard numbers, they’re more likely to take a risk on you.
If you need help, the U.S. Small Business Administration offers a free, 30-minute tutorial to get you started.
Step 3. Choose a structure and register
In Minnesota, an important step to launching your startup is figuring out what structure your business will take and doing the proper registration. Is this venture a sole proprietorship, or does it make more sense to file for a limited liability partnership? The State of Minnesota has the complete list along with the needed steps to get registered and make your business official.
At Minnwest Bank, we thrive on working with doers like you. Whether you’re exploring your lending options or need cash management services, we’re here with tools and insights to help you get your business off the ground. Contact a banker today.
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