List of Topics

SfC Home > Entrepreneurship > Business >

 

Basic Steps in Starting a Business

by Ron Kurtus (revised 20 November 2011)

A business is an organized activity to sell a product or service to various customers on a regular basis. To start a business enterprise, you first need a good idea and a plan of action. Then you must implement your plan by gaining financing, getting the product or service to sell, finding prospects, selling and making the exchange.

Questions you may have include:

This lesson will answer those questions.



Criteria for a business

The criteria for being in business is that you provide a product and/or service on a regular basis to a number of customers.

Selling on regular basis

A person selling a car or other property is involved in a business activity, but since it is a one-time operation, it is not considered a business enterprise. If the selling is done on a fairly regular basis, it can then be classified as a business.

Selling to more than one person

With providing services in exchange for money, a person usually does it on a regular basis. For example, a boy who mows lawns during the summer in his neighborhood is in business. On the other hand, if the boy is mowing the lawn of only one neighbor, he is no longer in business. Instead, he has a job.

Idea

Every new business starts with a great idea. Usually, the entrepreneur is motivated by wanting to run his or her own business and making a lot of money. There may be other personal motivations such as self-expression or wanting to make a difference in society.

Typically, the entrepreneur hears about something in an area of interest and skill that triggers the idea of a product or service that would be in demand.

Henry Ford saw others making cars and felt he could do it better and cheaper. Steve Jobs saw some of the new personal computers and got the idea of making his own version of user-friendly computer. Michael Dell saw how personal computers were being made and thought it would be a good business to get into.

Plan of action

The next phase in starting a business is to develop a plan of action. In many cases--especially when substantial funding is required--a formal business plan is written. But there are many businesses that start with informal plans that may change as the situation requires.

Next the plan is implemented.

Funding

Some entrepreneurs get funding to begin their businesses from their own savings. Others may present their business plan to venture capitalists to get seed money.

Get product or service

The product may be purchased or built. The entrepreneur may make him- or herself or hire others to make the product.

The service may be done by the entrepreneur or people may be hired to perform the service.

Get prospects

Marketing efforts are required to find prospective buyers and make them aware that the product or service is available, as well as the benefits and advantages of the goods.

It is necessary to meet with the prospects to demonstrate the product and convince them to buy.

Make exchange

Once the customer is convinced and a price is negotiated, you make the exchange. You deliver the product or service and they pay for it.

Repeat process

Some of the profits will pay for more products and marketing efforts, resulting in more demonstrations and sales. The business is up and running.

Summary

Starting a business requires a good idea and plan of action. You implement your plan by gaining financing, getting a product or service to sell, finding prospects, selling and making the exchange. Then you repeat the process for further business.


A journey starts with the first step


Resources and references

Ron Kurtus' Credentials

The following are resources on this subject:

Websites

Steps to Start a Business - From Entrepreneur Magazine

Starting a Business Categories - Startup resources from Business.com

Business Resources

Books

Top-rated books on Business


Questions and comments

Do you have any questions, comments, or opinions on this subject? If so, send an email with your feedback. I will try to get back to you as soon as possible.


Share

Click on a button to bookmark or share this page through Twitter, Facebook, email, or other services:

 

Students and researchers

The Web address of this page is:
www.school-for-champions.com/business/
starting_business.htm

Please include it as a link on your website or as a reference in your report, document, or thesis.

Copyright © Restrictions


Where are you now?

School for Champions

Business topics

Basic Steps in Starting a Business




Business topics

Basics

Starting a Business

Organizing

Reducing costs

Increasing business

Also see



Let's make the world a better place

Be the best that you can be.

Use your knowledge and skills to help others succeed.

Don't be wasteful; protect our environment.

You CAN influence the world.





Live Your Life as a Champion:

Take care of your health

Seek knowledge and gain skills

Do excellent work

Be valuable to others

Have utmost character

Be a Champion!



The School for Champions helps you become the type of person who can be called a Champion.