One of the hardest parts of starting a business is deciding exactly what kind of business you should set up.
You might have a few ideas, but in this guide we’ll help you solidify your plans so you can take the steps needed to get your own business off the ground.
Step 1: Assess your abilities and interests
Although it is possible to start a business in an area in which you have no experience, it’s usually best to focus on something you’re familiar with.
It’s likely that your potential business will be based on either an area related to your career, or a hobby or interest.
At this point, it might be immediately obvious what kind of business you should start – for example, if you make jewellery as hobby you may decide to start selling it as a business.
Or you may just have a general idea about which area your business will be in – for example, a web design or marketing services.
Regardless of which situation you find yourself in, it’s important to spend some time refining and validating your business idea.
Step 2: Conduct market research
Market research is a crucial part of setting up any business, and it’s something you’ll likely find yourself returning to as you develop your business idea.
- Important things to look into during your initial market research include:
- Is there sufficient demand for your product/service?
- Is the price people are willing to pay for your product/service enough to ensure your business will be profitable?
- What start-up costs will you face?
- Who will your competition be?
- Why should someone choose your business and not a competitor?
- What resources will I need to launch my business?
- How will I fund my business before it becomes profitable? (You can learn more about funding options for your business in this guide.)
By tackling these questions you’ll be able to refine your business idea and make sure there are no nasty surprises along the road.
Step 3: Draw up a business plan
A business plan is a document that sets out what you intend to do as a business and how you intend to make money.
It’s a useful document for many reasons – not only will it help you set out goals for your fledgling business, if you want to secure funding for your business then lenders will want to see your plan.
Step 4: Name your business and secure a domain name
Naming your business can be harder than you think. Coming up with a name that is good, reflects your business, isn’t used by another company and is available as a domain name can be a challenge.
For that reason, it’s best to come up with a list of names you like, rather than becoming attached to one particular name.
You can search for domain names here, and you can check if a business name is already registered here.
If you need help deciding on a domain name, check out this guide.
Step 5: Start planning your website
The good news is that unless you’re launching a highly complex website, you can do it all yourself.
Website Builder from GoDaddy will allow you to get online easily, and if you’re planning to launch and ecommerce business then you can use Online Store from GoDaddy.
Step 6: Still need more inspiration?
Hopefully this guide has helped you release what kind of business you should start. But if you still need more inspiration, check out this list of ten business ideas you can start from home.