Starting a Business – Full Practical Guide For New Entrepreneurs

Starting a business can often feel like venturing into uncharted territories without a map. Have you ever wondered about how to start a business? If the answer is yes, then you are going to be led by us, step by step, through the essential processes and considerations that turn an idea into a thriving enterprise. Whether you dream of launching a tech startup or opening a small coffee shop, the journey from idea to realization is filled with challenges and obstacles. This guide aims to equip new entrepreneurs with the practical knowledge, hints and insights needed to overcome these obstacles. From creating a solid business plan to understanding legal requirements and managing finances, our comprehensive approach ensures you are well prepared to make the right decisions. So, fasten your seatbelts and get ready for an exciting journey to turn your dream of starting a business into a reality. 

 

1. Starting a business – no ideas? 
2. Market research – finding the right opportunity 
3. Make a business plan 
4. Choose a business structure 
5. Fund your business 
6. Legal requirements 
7. Register your business 
8. Apply for Business Insurance 
9. Get the Right Business Tools 
10. Brand and Identity Development 

Starting a business – no ideas? 

 

Finding a promising business idea is often the most intimidating step for new entrepreneurs. If you are struggling to come up with an idea, do not worry – market research can be a powerful tool to inspire and improve potential business concepts. 

 

 

Start with what you know 

A great starting point is to look at the industries you know or are passionate about. Do you have experience in a particular field? Are there any bottlenecks or gaps you have identified in your professional or personal life that could be filled? Maybe you have always wanted to open a nail or make-up salon? Sometimes the best business ideas come from solving problems that you deeply understand. 

 

Keeping an eye on trends and changes 

Keep an eye on upcoming trends in technology, consumer behaviour and economic change. Tools such as Google Trends or industry reports can provide insight into what products or services are gaining popularity. In addition, changes in regulations or technological advances can open the door to new business opportunities. 

 

Problem solving 

Entrepreneurs often succeed by finding solutions to common problems. Think about the inconveniences you or your friends face on a daily basis. Is there a way to make these tasks easier or more enjoyable? Listening to complaints and observing the challenges faced by people in your community can lead to valuable business insights. 

 

Filling a gap in the market 

Through market research, you can identify a need that is not being adequately met by your current suppliers. This could be a product that does not yet exist or an existing product that can be significantly improved. Understanding consumer needs and market gaps can help you develop a real business idea. 

 

Market research – finding the right opportunity 

 

Before diving into the world of entrepreneurship, it is important to start with a solid foundation, and that starts with market research. Market research is the compass that guides your business towards unfilled needs and opportunities in the market. Not only does it help you understand where your idea fits, it also informs the direction of your business strategy and reduces the risk of costly mistakes. 

 

 

Understanding the basics 

Market research involves gathering, analysing and interpreting information about the market, including potential customers and competitors. This phase involves answering several critical questions: Who are the potential customers? What do they really want? Who are the competitors? What is the current market trend? The answers to these questions form the basis of a business that works with its audience. 

Steps to Effective Market Research 

• Define the objective: clearly defining what you want to learn from market research will make the process more focused and efficient. Are you trying to identify customer needs, assess market size or analyse the competition? 

• Data collection: There are two types of data that can be collected: 

• • Primary data: These are data collected first-hand, such as surveys, interviews and focus groups. They come directly from the source and are adapted to specific questions. 
  • Secondary data: These include information that already exists, such as industry reports, academic articles and newspaper articles. They are quicker and cheaper to collect but may not be as specific to your needs as primary data. 

• Data analysis: With the data, the next step is to look for patterns and insights. What are the common characteristics of your target market? What preferences do they have? How do they behave? This analysis will help you to identify your niche. 

• Competitor analysis: Understanding who your competitors are and what they offer can highlight gaps in the market that your business could fill. Analyse their strengths and weaknesses to identify your competitive advantage. 

• Feedback and validation: Before you finalise your business idea, it is important to get feedback from potential customers. This step may involve sharing your business concept with a small audience to assess interest and gather insights that can improve your offer. 

 

 

Use of technology 

In today’s digital age, businesses have access to a variety of tools that can facilitate effective and comprehensive market research. Online surveys and social media platforms can be particularly useful in collecting primary data, while analytical tools can help in decoding market trends and consumer behaviour. 

Thorough market research allows you to enter the market with confidence, backed by data-driven insights. It identifies not only opportunities but also challenges, enabling you to develop an effective strategy. Remember, the purpose of market research is not only to confirm your assumptions but also to challenge them, ensuring that your business idea is not only achievable but also capable of evolving in a competitive environment.

 

Make a business plan 

 

Once you have identified a business opportunity through diligent market research, the next key step is to draw up a business plan. This document is used as a plan for the business, outlining goals, strategies and how to achieve them. A well-constructed business plan is not only essential for securing funding, but also acts as a roadmap to guide operations and strategic decisions. 

Key components of the business plan 

• Executive summary: This section provides a brief overview of the company and its objectives. Although it appears first in the document, it is usually written last to capture the essence of what follows. 
• Description of the business: A detailed description of your company, the problems it solves and why you need it. This section should explain what you do and what makes your company unique. 
• Market Analysis: This is where you should present the results of your market research. Describe your target market, industry trends, competition and how you plan to position yourself in the market. 
• Organization and management: Outline the organizational structure of your company, highlighting the roles and responsibilities of each team member. This section should also contain information about the company’s legal structure. 
• Products or services: Describe what products you sell or what services you offer. Explain how your products or services benefit customers and how they stand out from the competition. 
• Marketing and sales strategy: Define your marketing plan and sales strategy. Explain how you intend to retain customers, what channels you will use and what your approach to pricing will be. 
• Funding application: If you are applying for funding, specify the amount needed over the next five years and how you are planning to use the funds. 
• Financial projections: Support your business plan with financial projections to show the expected profitability and financial condition of your business. Include profit and loss statements, cash flow statements and balance sheets forecast for at least the next three years. 
• Appendix: This is an optional section, which can include any additional documents that support your business plan, such as resumes of the key personnel, technical specifications or market research data. 

The importance of flexibility 

Although the business plan is a key guiding document, it should not be set strictly. As you gather more information and your business grows, you should re-examine and adjust your plan accordingly. This flexibility allows you to adapt and grow in a constantly changing business environment.  

Creating a detailed business plan is an essential step for any entrepreneur. Not only does it clarify the company’s vision and structure, but it also increases reliability when communicating with stakeholders and potential investors. By clearly defining your plans and expectations, you pave the way for future success in a competitive business environment. 

Choose a business structure   

 

Choosing the right business structure is a fundamental decision that affects both the legal and operational aspects of a new business. This choice affects everything from liability and taxes to control of the company. It is important to understand the different types of business structures available and choose one that best suits your needs and goals. Typical types of business structures – factors to consider: 

• Liability: Consider how much personal risk you are willing to take. In structures such as sole traders, personal assets can be at risk if the business gets into debt or legal trouble. LLCs and corporations provide a layer of protection against such situations. 
• Taxation: Each structure has a different tax consequence. For example, corporations are double taxed on profit and dividends, while LLCs offer indirect taxation, which can be more beneficial for many small businesses. 
• Control: If you want to keep full control of your business, a sole trader may be the best choice. However, if you want to share decision-making with others, a partnership or corporation may be more suitable. 
• Future needs: Consider the long-term goals of your business. If you plan to go public or raise significant investment capital, a corporation may be necessary. For smaller, more lifestyle-oriented businesses, an LLC or sole trader may be all you need. 

 

 

Legal requirements and set-up

Setting up a business structure requires careful planning and often professional legal advice. Depending on the structure, you may need to file documents in your country, prepare contracts and even set up organisational meetings. Make sure you understand the specific requirements for the chosen structure in your new company. 

 

Choosing the right business structure is crucial as it affects legal obligations, tax liabilities and potential growth. It is highly recommended that you consult with legal and financial specialists to ensure that the decision is in harmony with your business objectives and personal risk tolerance. The choice is fundamental to the company’s compliance, efficiency and success in the long term. 

 

Financing the business

 

Securing funding is a key step in starting a business. The right funding strategy depends on your business type, needs and long-term goals. Here are some typical ways to consider: 

• Bootstrapping: If possible, funding a startup from personal savings may be the simplest method. It involves minimal risk in terms of liabilities and does not require giving up private equity or paying interest. 

• Bank loans: Banks offer various loans designed for small businesses. They usually require a solid business plan, good credit rating and potentially some collateral. 

• Venture capital: For companies with high growth potential, especially in technological or highly developed sectors, venture capital may be more suitable. This involves exchanging shares in the company for equity investment from venture capitalists. 

• Crowdfunding: Platforms such as Kickstarter and Indiegogo allow fundraising by presenting a business idea to the public. This method can also serve as a marketing tool and a way to validate a product or service. 

• Grants and government programmes: Some government programmes offer grants, loans or other financial support for start-ups, especially those in specific industries or belonging to underrepresented groups. 

 

 

Compliance with regulations 

 

Your business must comply with local, country and international regulations. This may include obtaining the necessary licences and permissions, following health and safety standards and meeting labour laws if you plan to employ staff. 

 

Protecting your intellectual property 

 

If your business idea involves unique products or services, securing intellectual property rights through patents or trademarks can be essential to prevent others from exploiting your innovations.

 

Company registration

 

Company registration is essential for the legal operation of a business. The process varies from location to location, but generally involves the following steps: 

• Choosing a company name: Ensuring that the chosen name is not already in use. 
• Registration with local and national authorities: Depending on the company structure, this may include registering the company name, obtaining a tax identification number and other similar administrative tasks. 
• Obtaining the necessary licences and permits: Depending on the industry, certain licences may be needed to legally operate the business. 

Apply for business insurance 

 

Business insurance protects against unexpected losses. Typical types include: 

• General liability insurance: Covers injuries or damages caused to third parties. 
• Product liability insurance: For companies that manufacture or sell products, covers losses caused by faulty products. 
• Professional liability insurance: Also known as errors and omissions insurance, this is crucial for service companies. 

Get the right business tools 

 

Efficient operations require the right tools. This includes accounting software, customer relationship management (CRM) systems, project management tools and communication platforms. Choosing the right and powerful tools can improve work and productivity. 

 

Brand and identity development

 

Creating a strong brand identity is key to standing out in the market. This includes: 

• Logo and design elements: The visual identity should represent the business values and be appealing to the target audience. 
• Brand voice and messaging: A consistent message across all channels increases brand recognition and customer trust. 
• Marketing strategy: Develop a strategy that effectively communicates your brand to potential customers, including choosing appropriate marketing channels based on where your audience spends time. 

 

 

By carefully planning each of these steps, you will prepare your business for successful operations and sustainable growth. We can help you develop your skills with our courses to improve any business indicator you are aiming for (https://kempcenter.com/training-for-business/).  

 

Summary and conclusions 

 

As you can see, starting a business can be a bit scary at first glance, but once you start breaking down tasks into manageable components and follow a structured approach, it becomes much easier. In this guide, we have looked at the key aspects that make up a successful business, from initial market research to securing funding, choosing a legal structure and building a strong brand identity. Remember, the business journey is as rewarding as it is challenging. You can check out our Business Management Course, that could help you with your own business. Click here to view the course. 

What is more, it is wise to listen to the advice of experts who have shared their insights on these topics. Their experiences offer invaluable lessons and shortcuts that can save your time, money and common pitfalls. By listening to those who have successfully navigated the path you are about to enter, you not only increase your own understanding, but also increase the potential for success for your business. Keep learning, be flexible and let your business journey evolve with confidence. 

  

Advice from the experts 

Natalia Tobolska – she runs a sole proprietorship “Natalia Tobolska”. She is a photographer specialising in wedding sessions, children and product photography. She treats each assignment as an opportunity to capture unique moments and emotions. She is also skilled in creating graphics for companies, offering aesthetic and creative visuals that support branding.  

“When setting up my business, it was a big challenge for me to draw up a business plan and, more specifically, a financial forecast. I was not familiar with accounting issues. Taking advice from an accounting agency was helpful in this area.  Also, at the very beginning of running my own business, I found it difficult to keep up with all the accounting documentation.  Therefore, I could not imagine continuing to run my business without working with an accountant.  

Another issue is that the beginnings of a business often involve irregular income, while expenses for equipment or marketing were relatively high. I found it challenging to manage a budget to cover ongoing costs and investments. Over time, as the number of orders increased, I learned to better calculate my cash flow and to budget wisely for any investments.  

If I could give a hint to someone who is planning to open their own business, my advice would be, first and foremost, to draw up a solid business plan. This is a really important document to learn about the market, define business goals, identify key customers and ultimately develop a long-term strategy. Above all, it’s worth figuring out what your business is about and whether you will find potential clients for your services, as the success of your business depends on this.  

Following my example, I recommend not hesitating to seek outside help. There are many forms of assistance available in the form of business advisors, chambers of commerce supporting you in obtaining funding or business incubators of all kinds. 

Running your own business gives you a sense of independence, but it is important to remember that it is up to you how your business will prosper. You should not be afraid to make mistakes, as each one is a teaching experience and an opportunity to continuously improve your approach. It is worth remembering that the environment is constantly changing, so be flexible and ready for these changes. A perfect example is the technological revolution and the impact of artificial intelligence on virtually every industry. It is advisable to be open-minded and look for opportunities that can improve our business.” 

 

Sources 

 

• https://www.forbes.com/advisor/business/how-to-start-a-business/#10_market_your_business_section 
• https://www.businessnewsdaily.com/4686-how-to-start-a-business.html  
• https://www.sba.gov/business-guide/10-steps-start-your-business  
• https://www.thehartford.com/business-insurance/strategy/how-to-start-a-business  
• https://www.nerdwallet.com/article/small-business/how-to-start-a-business