How to Start a Business From Scratch in 7 Steps

Starting a business from scratch may sound like a daunting task. But, with the right mindset and clear steps, anyone can turn their dream into a reality. Whether you're looking to create the next big tech company or start a small local shop, these 7 steps will help you get started.

1. Idea

The first step in starting a business is coming up with an idea. Ask yourself: what am I passionate about? What problems do I want to solve? What gaps exist in the market?

If you love fitness, you might want to start a personal training service or create fitness gear.

Here’s how you can come up with a business idea:

Think about your hobbies, skills, and passions.
Identify problems people face in daily life.
Research emerging trends and industries.

Once you’ve come up with a few ideas, it’s time to pick one that excites you the most.

2. Research

Market research helps you understand if there’s demand for your product or service. This means looking into who your customers are, what they want, and what your competition looks like.

Tip: Market research helps you avoid creating a business nobody wants!

Here’s how you can conduct market research:

Talk to potential customers. Ask about their needs and pain points.
Look at your competitors. What are they doing right? What can you do better?
Use online tools like Google Trends, surveys, and social media polls to gather data.

Market research doesn’t have to be complicated. Even talking to five or ten people can give you valuable insights.

3. Plan

A business plan is like a map. It tells you where you're going and how you'll get there. A simple business plan includes:

Your business idea.
Who your customers are.
How you will make money.
Your costs (like rent, equipment, and salaries).

If you’re opening a coffee shop, your business plan would include costs for rent, supplies, and staff salaries.

Make sure your business plan is realistic and achievable. You don’t need a 50-page document. A one-page plan is fine to get started.

4. Register

Now that you have a solid plan, it’s time to make your business official. Registering your business gives you the legal right to operate.

A registered business protects your personal assets from business risks.

Here’s what you need to do:

Choose a business structure (like sole trader, partnership, or limited company).
Register your business name. Make sure it’s unique and memorable.
Get any licenses or permits you need to operate legally.

Each country has different rules, so check with your local government for the exact process.

5: Funding

Starting a business often requires some money upfront. This could be to buy supplies, rent a space, or pay for marketing.

If you’re starting an online shop, you’ll need money for a website and product inventory.

Here are a few ways to secure funding:

Personal savings or loans from family.
Crowdfunding platforms like Kickstarter.
Small business loans from banks or credit unions.

You don’t need a huge amount of money to start. Many businesses, especially online ones, can begin with a small budget.

6. Build

Your brand is what sets you apart from the competition. It’s how customers see and remember your business.

A strong brand helps you stand out and attract loyal customers.

Here’s how to build your brand:

Choose a business name that reflects your values.
Create a logo and visual identity (colours, fonts, etc.).
Build a simple website or social media page to show your products/services.

If you’re not tech-savvy, use website builders like Wix or Squarespace, which don’t require coding knowledge.

7. Launch

Once everything is ready, it’s time to launch! But launching doesn’t mean your work is over. You need to constantly promote your business to attract customers.

If you’re starting a local bakery, you could offer free samples to people in your neighbourhood.

Here are ways to promote your business:

Use social media platforms like Instagram, TikTok, or Facebook to share your story.
Offer special discounts or promotions for your first customers.
Create content (like blogs or videos) that showcase your expertise.

Remember, promoting your business is an ongoing process. Keep experimenting to see what works best.

Starting a business may seem overwhelming, but by following these 7 steps, you’ll be on the right path. From finding a business idea to launching and promoting it, each step is essential to building a successful business.

Starting small is okay. You don’t need to have everything figured out from day one. Just take that first step.

Good luck on your journey!