How to Start a Business Without Failing in 2023 Easy Step-by-Step Detailed Guide

The first step to starting a business is to determine your business idea. This means identifying the type of business you want to start, what products or services you want to offer, and how you plan to make a profit. To do this, you'll need to research what's already out there, how to do it, where to do it, and when to do it.

We have a separate detailed article about How to find the Best Business Idea which we have covered all aspect about finding a killer business idea without failing or set backs.

1.1 Research on What to Do, How to Do, Where to Do, and When to Do

Before you start your business, it's important to research your industry, your potential customers, and your competitors. This will help you understand what products or services are in demand, how to market to your target audience, and what kind of competition you'll be up against. Use online resources, industry reports, and market research to gather as much information as possible.

Take a pen and paper or on your pc, draw a table with following columns and populate the table using a list of ideas which you think best you can start your business with. 

1.2 Do a SWOT Analysis on Your Business Concept

Once you have a table as above motioned with a list of business ideas, now you need to evaluate each idea, using very simple and fun technique called SWOT.  A SWOT analysis is a helpful tool for assessing the strengths, weaknesses, opportunities, and threats of your business concept. This will help you determine if your idea is viable, what challenges you may face, and how you can capitalize on your strengths. Be honest with yourself and take a critical look at your idea to identify any potential roadblocks or weaknesses.

Let's break it down into some examples that are easy to understand:

1.3 Refine and Optimize Your Business Concept

Based on your research and SWOT analysis, you may need to refine and optimize your business concept. This could mean adjusting your products or services, identifying a more specific target audience, or changing your marketing strategy. Remember, the goal is to create a unique and profitable business that meets the needs of your target market.

1.4 Determine Your Break-Even Point

Your break-even point is the point at which your business begins to make a profit. To determine this, you'll need to calculate your fixed costs (rent, utilities, salaries, etc.), variable costs (materials, supplies, etc.), and projected revenue. This will help you determine how much you need to sell in order to break even, and how much profit you can expect to make. We have an Ultimate guide on What is it and How to calculate Break-even Point

1.5 Come Up With an Exit Strategy

An exit strategy is a plan for how you'll exit your business if it doesn't work out or if you decide to move on. This could include selling the business, handing it over to someone else, or closing it down. It's important to have an exit strategy in place from the beginning so you can plan for the future.

1.6 Tools and Resources You Need for Production

Depending on the type of business you're starting, you may need certain tools and resources to produce your products or services. This could include equipment, software, or specialized training. Make a list of everything you need and research the costs so you can budget accordingly.

Once you have a clear business concept, it's time to research your competitors and market. This will help you understand what other businesses are already out there, what they're doing well, and how you can differentiate yourself.

2.1 Physical and Online Research on Your Competitors

Physical research involves visiting your competitors in person to observe their operations, products, and customer interactions. Online research involves analyzing their websites, social media profiles, and reviews. This will give you a comprehensive view of your competition and how you can stand out.

2.2 Identify Their SWOTs

Just like with your own business, it's important to conduct a SWOT analysis on your competitors to understand their strengths, weaknesses, opportunities, and threats. This will help you identify areas where you can outperform them and capitalize on their weaknesses.

Read our ultimate guide on How to do an effective SWOT here if you want get it done right.

Choosing the right business structure is crucial to the success of your business. The structure you choose will affect your legal liability, taxes, and operational flexibility. Here are the most common types of business structures to consider:

1. LLC (Limited Liability Company):

   An LLC provides liability protection for the business owner's personal assets while offering the tax benefits of a partnership. LLCs are flexible in terms of management structure and ownership, making them an attractive option for many small businesses.

2. LLP (Limited Liability Partnership):

   LLPs are similar to LLCs in that they offer liability protection for the partners. However, LLPs are typically used by professional services firms such as law firms, accounting firms, and consulting firms.

3. Sole Proprietorship:

   A sole proprietorship is the simplest and most common form of business ownership. The business is owned by a single individual who is personally responsible for all aspects of the business, including liabilities.

4. Corporation:

   A corporation is a separate legal entity from its owners, providing them with limited liability protection. Corporations are often the preferred structure for larger businesses and those seeking to raise capital through the sale of stock.

When deciding on the appropriate structure for your business, consider the level of legal protection you need, your tax obligations, and the complexity of your operations. It is always advisable to consult with an attorney or accountant to determine the best structure for your business.

Now that you have a clear understanding of your business concept, the market, and your competitors, it's time to put everything down in writing. A business plan is a document that outlines the business's objectives, strategies, market analysis, and financial projections. We have a separate Detailed guide on Business Plan which contains every things from how to do it properly and mistakes to avoid. make sure you read that as well.

Your business plan should include:

4.1 Executive Summary

This is a brief summary of your business concept, target market, financial projections, and marketing plan. It should be clear, concise, and captivating, as it's the first thing that potential investors or lenders will read.

4.2 Company Description

This section provides an overview of your business, including the company's name, location, legal structure, and history.

4.3 Market Analysis

In this section, you'll demonstrate your knowledge of the market, including market size, demographics, competitors, and trends. It's important to show that you've done thorough research on the industry and understand the challenges and opportunities you'll face.

4.4 Organization and Structure

This section outlines the structure of your company, including the management team, board of directors, and ownership structure. It's essential to provide an organizational chart that clearly shows the roles and responsibilities of each member of the team.

4.5 Mission and Goals

Your mission statement should be clear and concise, stating what your business does and why it exists. This section should also include your short and long-term goals, and the strategies you'll use to achieve them.

4.6 Products or Services

This section describes the products or services you'll offer, including their unique selling points, features, and benefits. It's important to show how your products or services will meet the needs of your target market.

4.7 Background Summary

This section includes information about the company's founders, their background, and experience in the industry. You can also include any awards, achievements, or recognition your business has received.

4.8 Marketing Plan

This section outlines your marketing strategy, including your target audience, advertising and promotional activities, and sales channels. It should also include a pricing strategy and a plan to measure the success of your marketing efforts.

4.9 Financial Plan

This section includes financial projections, such as income statements, balance sheets, and cash flow statements. It should also include details on how much funding you need and how you plan to use it. You'll need to provide realistic financial projections and show how you'll achieve profitability over time.

Once you've completed your business plan, you'll have a better understanding of your financial needs. There are several ways to fund your business, including:

5.1 Personal Funding

This includes your own savings, credit cards, or help from family and friends. Personal funding is often the easiest and most accessible way to get started, but it's important to be cautious and not risk more than you can afford to lose.

5.2 Business Loans and Grants

There are various business loans and grants available from government agencies, banks, and other financial institutions. These can be a great way to get the funding you need to start your business, but they often require a solid business plan and collateral.

5.3 Angel Investors

Angel investors are wealthy individuals who invest in start-ups in exchange for equity in the company. They can provide significant funding and expertise, but they also have high expectations for returns on their investment.

5.4 Venture Capital

Venture capital firms invest in high-growth businesses that have the potential to become very successful. In exchange for funding, they usually take a significant stake in the company and have a say in its operations.

5.5 Crowdfunding

Crowdfunding platforms allow you to raise money from a large number of people in exchange for rewards or equity in your company. This can be a great way to get

We have a separate Complete guide on How to Fund your business idea. check it out to find all the ways you can fund your business, what do you need to have before going for funding, things to do and tips etc.

Once you have secured funding, it's time to register your business and obtain any necessary licenses and permits. This will depend on the type of business you are starting and the state and local regulations in your area. Here are some common steps to register your business:

6.1 Incorporating the Business

Depending on your business structure, you may need to incorporate your business or register with the state. This will typically involve filing articles of incorporation and paying a fee.

6.2 Doing Business As (DBA)

If you are operating under a different name than your legal business name, you may need to file for a DBA.

6.3 Employer Identification Number (EIN)

You will need to apply for an EIN from the IRS. This is a unique identifier for your business and is required for tax purposes.

With your business officially registered, it's time to set up the essential components of your business, such as bank accounts, insurance, and your team.

7.1 Open Business Bank Accounts

You will need to open a separate bank account for your business to keep your personal and business finances separate.

7.2 Get an Insurance Policy for Your Business

Insurance is an essential component of any business. Depending on your industry, you may need different types of insurance, such as liability insurance, property insurance, or workers' compensation insurance.

7.3 Setup Tools and Resources

You will need to acquire any necessary tools and resources to run your business. This might include equipment, software, or office space.

Read our guide on the 10 most essential must have software tools checklist and find out how you can get 38% more success in your business.

7.4 Recruit Your Team

You will need to hire a team to help you run your business. This might include employees, contractors, or freelancers.

7.5 Design Your Branding Material

Your branding material, such as your logo, website, and marketing materials, is essential to establish your business identity and attract customers.

With all the foundational elements in place, it's time to start setting up your business operations.

8.1 Design and planning:

Develop a detailed plan for your product or service, including timelines and budgets.

8.2 Production:

Once your plan is in place, it's time to start producing your product or service.

8.3 Marketing and sales:

Establish a marketing and sales plan to attract and retain customers.

8.4 Customer support and PR:

Establish a customer support system to help customers with any issues that may arise and a public relations plan to promote your business.