Starting a business can be a lot of work for those unfamiliar with which steps they need to follow in the beginning. The process can be broken down into smaller steps to make it easier for you to know which path to follow as a new entrepreneur. 

Rather than guessing where to start, it’s better to follow in the footsteps of those who have already done it. Roughly 90% of startups fail when starting a business, so taking the right steps as a new entrepreneur is more important than it has ever been. 

In this article, we’ll dive deeper into providing you with a step-by-step guide on how you can start a business in 2024. 

1. Refine your business idea 

You can’t start a business without having any ideas in, therefore, you need to brainstorm. If you want to clarify which direction you’re heading, it’s always important you answer these questions: 

1. What do you like to do? 
2. What are you good at?
3. What problem can you solve? 
4. What are the emerging trends? 
5. What solutions can be improved?
6. What is your level of experience? 

Once you’ve come up with your idea, it’s now time to get to work and put your idea to the test.

2. Conduct market research

Conducting market research is an important part of starting a successful business. This involves analyzing and gathering important data to gain insights into your target market, industry trends, and competitive landscape. This process allows you to understand your customer’s needs, find new opportunities, and make better decisions regarding your product or service offerings. 

Market research can be separated into two versions, which include: 

1. Primary research: Surveys, focus groups, and interviews. 
2. Secondary research: Reports, market analysis, and competitor analysis. 

Primary market research will help gather new data directly from sources and is great for addressing your business needs. 

Secondary market research, on the other hand, involves analyzing data that is collected by others. This is information that is either publicly available or purchased from third-party sources. 

3. Use an AI tool to create your online website 

You wouldn’t believe it, but AI tools have come to a point where they can help you create your online business in seconds. Hiring someone to create a website might be an expensive choice, and time-consuming, especially when you are starting a business and are on a budget. 

AI tools are now allowing you to create your own website for your new business only by putting in the following information: 

1. Entering your company’s name: You have a new business, and it’s now time to begin your journey by entering your brand name. 
2. Choose your business industry: There are plenty of categories available, and choosing your industry allows you to speak directly to your target audience and tailor it to your specific niche. 
3. Enter your brand description: This allows visitors to see what your business is about and why visitors should visit it. This helps your business create a unique online presence and it is engaging for your target audience. 
4. Choose your color palette: Colors represent your brand identity, so choosing a color that aligns with your brand personality will leave a lasting impression on your target audience. 

AI tools are advancing every day, and not only are they giving you new options to create an online website the way you want to, but they are also giving you more customizable options each day. 

4. Write your business plan 

A good business plan is a roadmap for you when starting your new business. This document makes everything simple so that everyone can understand which path you are heading towards. Even if you are someone who intends to self-finance, your business plan will still help you identify any potential issues that will come along your path when doing business. 

Whenever you write your business plan, it’s important to include the following sections: 

1. Executive summary: The executive summary needs to be your starting point in your business plan, but needs to be included at the end. It describes the proposed new business and highlights all of the company’s goals and methods that will be used to achieve them. 
2. Company description: This part clarifies what problems your product or service is solving. Every customer wants to know what problem you can solve for them. For example, you are a business that creates AI tools and saves customers time and money from needing to hire someone. 
3. Market analysis: Analyzes the competition and this is where you need to clarify who your competitors are in the market you are entering. Market analysis should include your target market, a segmentation analysis, your market size, its growth rate, and ongoing trends in your market. 
4. Mission and goals: Include your mission statement here and clarify what your business is trying to accomplish. To make everything easier, you can use the SMART (specific, measurable, action-orientated, realistic, and time-bound) approach. 
5. Your product or service: This shows how your business is going to operate and what product or service the consumer is going to be consuming. Important information to include is the product's cost, how you are going to source the material, and how they are compared to competitors. 
6. Financial plan: Your financial plan is the core of your business since it shows how it will be moving forward. It’s always good to include a proposed budget, your income statement, a balance sheet, and a cash flow statement. 

If you find it challenging to write a business plan on your own, you can always consider downloading business plan templates that have the outline ready for you. 

Business plans will help your business grow 30% faster than those who don’t have one, so this is a significant advantage you have from the beginning. 

5. Start funding your business 

We know that the beginning is always hard and the funding part is always the hardest part when starting a business from scratch, but don’t worry because there are plenty of ways you can fund your new startup. Let’s take a close look at how you can fund your startup business in 2024 as a new entrepreneur: 

1. Using your personal funds: Maybe you are someone who has saved lots of money over the years and considered opening a business. Personal funds are always a great option since you don’t need to pay anyone back in the future. 
2. Taking loans from your friends or family members: People close to you are often the ones who will help you take your finances to the next level through loans and small investments. 
3. Crowdfunding platforms: These online portals allow individuals to contribute to fundraising campaigns in exchange for equity. 
4. Angel investors: Are wealthy individuals who invest in startups either for convertible debt or equity. These types of investors won’t engage with the operations/strategy of the company. 
5. Venture capitalists: These are institutional investors that provide startups with great sums, but they’ll only do so if they see that your startup has growth potential. 
6. Bank loans: Usually a popular option amongst many startups.
7. Government loans/grants: Local or national agencies always offer funding programs around research, innovation, and economic development. 

Many funding methods always require you to ask to see if these funding options apply to you. Therefore, it’s always good to see your options and choose the one that best fits your requirements as a new business. 

6. Choose your business structure

When it comes to structuring your business, it’s always important to consider your business structure since it clarifies how much taxes you owe, your daily operations, and how risk-averse your personal assets are. Let’s take a close look at each business structure. 

Limited Liability Company (LLC) 

An LLC limits personal liabilities for business debts. They can be owned by one or more members and have to include a registered agent. They are great for offering you liability protection and are one of the easiest business entities to set up. 

However, keep in mind that an LLC will require you to pay annual filing fees based on the area you are living in, and might require lots of paperwork regularly. 

Limited Liability Partnership (LLP) 

This type of business structure is fairly similar to an LLC but is most commonly used by attorneys or accountants. On the contrary, they don’t require lots of paperwork and partners have limited liability for the actions of the LLP. Also, there isn’t any set limit to how many members can participate in an LLP. 

However, keep in mind that LLPs can’t issue stocks, and all partners must take part in the business. 

Corporations 

Corporations limit personal liability for business debts, similar to an LLC. Corporations can either be C-corporations or S-corporations. There isn’t any fixed life span of a corporation, and there’s no limit on how many shareholders it can have. 

However, it’s always important to keep in mind that corporations are subject to double taxation, and are a much more complicated option than other business structures. 

Sole Proprietorship (SP) 

If you are starting a business on your own, SP is the best structure to choose. In this case, the business owner takes on the liability for the business Therefore, if the business fails, all the responsibility will be placed on the shoulders of the owner.

The good side of sole proprietorships is that they are easy to create, and you don’t need to deal with paperwork too much. It may sometimes be challenging to raise funds for your sole proprietorship, but if you find the right funding options, it’s never impossible. 

7. Register your business and get the required licenses 

There are many legal issues to address when starting a new business and after you choose your business structure. 

Here’s what you need to do right after you choose your business structure. 

Choose your business name 

It’s always good to choose a name that isn’t too hard to remember. If you find it hard to choose a business name on your own, you can always use a brand name generator. 

Brand name generators will ask you to input the industry you are in, your description, and select a tone. This way, the brand name generator can analyze the information and give you the ideal name you are looking for. 

Register your business and obtain your Employer Identification Number (EIN) 

Whichever business structure you choose to go with, you need to find a registered agent who will accept your legal documents concerning your startup business. 

After, you’ll need to pay the filing fee and have a certificate that will allow you to apply for licenses, a tax identification number (TIN), and business bank accounts. 

Last but not least, it’s time to apply for an EIN. All business structures except sole proprietorships require you to obtain a federal employer identification number. You can submit your application to the Internal Revenue Service (IRS) and you’ll receive your number in a few minutes. 

Get the appropriate permits and licenses

The industry you are in determines legal requirements. It’s always important to contact your local government and even the right attorney to learn more about licensing information in your area. This way, you know which direction to go and which permits and licenses you need.

8. Get business insurance 

It’s always important to get insurance for your business. The type of insurance you need will strongly depend on your business and the risks you might face. The types of business insurance coverage include: 

1. Liability insurance: Protects your business from third-party claims, property damage, and even personal injuries. 
2. Property insurance: Covers all of the business's physical assets.
3. Business interruption insurance: Pays for your business losses if a natural disaster were to occur. 
4. Product liability insurance: Protects any claims that your products caused property damages or injuries to people. 
5. Employee practices liability insurance: Protects your business from any claims concerning employee discrimination, sexual harassment, or any other terminations that include wrongful intentions. 
6. Compensation insurance for employees: In case employees get injured on the job, this covers their medical expenses and income replacement. 

Business insurance is vital when it comes to starting a business. Natural disasters, third-party claims, personal injuries, or any other type of scenario can seriously impact finances, so you must have someone back you up when required. 

It’s now time to start your business as a new entrepreneur 

Now that you have finally learned the important steps in starting a business from scratch, it’s time to start your online business in the right way. With lots of technological advancements over the years, it’s now becoming possible to start your entrepreneurship journey in the shortest time possible. 

Launching a business in 2024 isn’t impossible, and new entrepreneurs have it easier than ever, so it’s now your turn to follow these steps and get your business up and running as soon as possible!