What Are Crucial Steps When Starting a New Business?
Starting a new business is like embarking on a thrilling adventure—filled with opportunities, challenges, and the promise of success. But the path to entrepreneurial triumph is not always clear, and taking the wrong steps early on can derail even the most promising ventures. That’s why it’s crucial to have a solid foundation before you dive in. We’ve tapped into the expertise of top CEOs and founders who have been through the highs and lows of starting a business, and they’ve shared their invaluable insights.
- Conduct a Feasibility Study
- Craft a Detailed Business Plan
- Research Your Buyer Persona
- Validate Your Business Idea
- Build a Strong, Adaptable Team
- Plan Legally and Financially
- Define Your “Why”
- Establish Automated Processes
- Conduct Thorough Market Research
- Engage Directly with Potential Customers
- Grow Your Personal Brand
- Refine Your Value Proposition
Conduct a Feasibility Study
I probably shouldn’t have to say this, but before you start a business, first determine if there is demand for your product. Talk to your potential clients, the ones you feel might be interested. It is not enough to think on their behalf; you need to know what they really think. This is actually part of a feasibility study. Unless you are a Steve Jobs or Elon Musk, who seem to attract buyers no matter what they do, do your homework first. Ask people if they will buy your products.
Zain Jaffer, CEO, Zain Ventures
Craft a Detailed Business Plan
Crafting a detailed business plan is essential for a new venture. During the launch of Sartoro, dedicating time to develop a comprehensive plan proved invaluable. It helped define our unique value, target audience, and financial outlook, while also assisting in securing funding and guiding our strategy. A well-thought-out plan is your roadmap, keeping you focused and adaptable as your business evolves.
Andrew Fine, Founder, Sartoro
Research Your Buyer Persona
Understanding your buyer persona is crucial when starting a new business. This step involves researching and defining your ideal customer’s age, interests, pain points, and buying behaviors. This information is essential because it influences every business decision, from your marketing strategies to the design of your website.
For instance, if you’re selling trendy apparel, your e-commerce site should be modern and easy to navigate, especially if targeting tech-savvy younger consumers. Conversely, if you offer coaching services, consider a membership site that provides exclusive content to subscribers.
It is vital to maintain consistency across all your marketing platforms, including social media. Ensure that your brand’s look, feel, and messaging are uniform wherever you engage with potential customers.
Many entrepreneurs have great products but lack a clear strategy for reaching the right audience. By effectively understanding and implementing your buyer persona, you set a strong foundation for your business’s success.
Mark Medeiros, Principal Partner, Slocum Studio
Validate Your Business Idea
In my experience, one crucial step in starting a new business is validating your idea. It’s easy to get caught up in excitement and dive straight into building your product or service, but without validation, you might be building something no one wants.
Before investing too much time and money, you should test your concept with real potential customers. This can be as simple as creating a landing page, conducting surveys, or offering a minimum viable product (MVP). This initial feedback is invaluable for refining your offering and ensuring there’s a genuine demand. It saves you from the costly mistake of launching a product that doesn’t resonate with your target market. In short, always make sure there’s a need for what you’re offering before going all in!
Andrew Lee Jenkins, Owner, Catalyst RVA Marketing Agency
Build a Strong, Adaptable Team
In my experience as a founder, building a strong, adaptable team is paramount. During the early stages of our company, having a team that was not only skilled but also flexible and committed to our vision made all the difference. We faced numerous challenges and needed to pivot our strategies multiple times. A resilient team that could swiftly adapt to changing circumstances was critical in turning obstacles into opportunities and driving our startup toward success.
Moreover, when everyone is aligned with the company’s goals and ready to tackle new challenges collaboratively, it creates a dynamic and supportive environment. This adaptability allowed RecurPost to remain agile and responsive to market demands, ultimately helping us to grow and succeed. Building such a team should be a priority for any entrepreneur starting a new business.
Dinesh Agarwal, Founder, CEO, RecurPost
Plan Legally and Financially
In my experience as both a General Counsel and a financial advisor, the most crucial step in starting a new business is conducting comprehensive legal and financial planning. Rushing into the market without a well-buffered plan leaves you vulnerable to unexpected pitfalls.
One example was when a client, brimming with entrepreneurial enthusiasm, skipped the estate-planning process for his business. Unfortunately, he encountered serious trouble when he tried to transfer ownership during a critical merger. From this experience, I emphasize to all my clients that they should never skimp on the foundational legal and financial aspects when launching a startup. It’s not as glamorous as marketing and product design, but it forms the bedrock of sustainable business growth.
Jonathan Feniak, General Counsel, LLC Attorney
Define Your “Why”
One crucial step I always emphasize when advising new businesses is to define your “why” before anything else. With my experience guiding startups, I’ve seen that a clear and compelling purpose is what fuels everything else. It’s easy to get caught up in the excitement of launching—building a product, crafting marketing plans, or securing funding. But without a strong foundation built on why you’re starting this journey, it’s like setting sail without a compass.
I believe that understanding the deeper reason behind your business—whether it’s to solve a specific problem, fulfill a passion, or make a meaningful impact—is the key to staying focused when challenges arise. Your “why” isn’t just about making money; it’s about creating something that resonates with your values and the needs of your audience. This purpose will guide your decisions, attract the right team, and ultimately connect with customers on a deeper level.
Businesses that start with a clear purpose are the ones that not only survive but thrive. They have a sense of direction that goes beyond profits, and that’s what makes all the difference when navigating the unpredictable nature of entrepreneurship.
Raviraj Hegde, SVP of Growth & Sales, Donorbox
Establish Automated Processes
In my experience as a Fractional COO and Automation Consultant, one crucial step in starting a new business is establishing streamlined and automated business processes from the very start. This foundation allows for a more efficient operation, keeping costs low while maximizing productivity. I have worked with numerous startups at The Process Hacker, where I helped them implement tools like CRM and task management systems, tailored to their unique needs and operational workflows.
A memorable project was with a newly established e-commerce brand; we automated their ordering and fulfillment process, resulting in significant time savings and an impressive increase in order accuracy. These improvements in their operations played a crucial role in their early-stage success. It demonstrates that embracing automation early isn’t just helpful; it can be a game-changer for startups.
Dev Chandra, Chief Executive Optimizer, The Process Hacker
Conduct Thorough Market Research
One crucial step in starting a new business is conducting thorough market research. This involves understanding your target audience, identifying your competitors, and analyzing market trends.
Market research provides invaluable insights that help you make informed decisions about your product or service, pricing, and marketing strategies. It helps you understand the needs and preferences of your potential customers, ensuring that your business idea meets a real demand. Additionally, knowing your competition allows you to differentiate your offering and find your unique value proposition. Without this foundational knowledge, you risk investing time and resources into a business that might not succeed.
To summarize this approach, consider the acronym “MIRROR”: Market Insights, Identify Audience, Research Competitors, Real Demand, Offer Differentiation, Realistic Foundation. The MIRROR approach ensures that you reflect deeply on every aspect of your market before diving into your new venture. By making market research a priority, you set your business on a path to success, armed with the knowledge needed to thrive in a competitive landscape. Remember, a clear understanding of your market is the reflection of a strong business foundation.
Bassam Nammour, Management Consultant, Meirc
Engage Directly with Potential Customers
A crucial step in starting a new business is validating your idea through comprehensive market research. This involves not only identifying a need within the market but also engaging directly with potential customers to understand their challenges and expectations. This step ensures that the product or service you plan to offer truly resonates with your target audience, significantly increasing your chances of success. Thorough market validation can save time, resources, and guide strategic adjustments before a full-scale launch.
Barbara McMahan, CEO, Atticus Consulting LLC
Grow Your Personal Brand
Build your personal brand. People buy from people, not just products. Even with a superior product, if your competitors are better-known, your sales will suffer. Instead of aiming for a groundbreaking product right away, focus on building an audience. Create content, engage on social media, and establish yourself as an expert in your field. Start small, consistently grow your following, and let your personal brand propel your product to success.
Scott Gabdullin, CEO & Founder, Authority Factors
Refine Your Value Proposition
In my experience, taking the time to define and refine your value proposition is one of the most important steps in starting a new business, especially in a competitive field like ours. It’s easy to get caught up in the excitement of launching a new business, but without a strong understanding of what sets you apart, you risk fading into the background.
For us, the key was identifying the unique strengths of our 3D-rendering services and how we could offer something different. We knew that offering a full spectrum of services wasn’t enough—we had to communicate why our approach was distinct and how it added value for our clients.
We focused on delivering photorealistic renderings that not only met but exceeded client expectations, and we made sure that our branding and messaging reflected this commitment to quality.
This clarity in our value proposition guided every decision we made, from marketing to client engagement. It became the foundation of our business strategy and allowed us to build a strong brand that resonated with our target audience.
Lukas Berezowiec, CEO & Founder, No Triangle Studio
