We have prepared a whole guide for people who want to realize their ideas and make money from it. You will learn how to find a perspective niche, where to get money to start a commercial activity, and what steps you need to take to avoid going broke.

Choose a niche to start a business

Any business is based on idea. To choose a relevant niche, you need to answer several questions:

  • What types of activity can you do well?
  • What things are people missing?
  • What activities can you do better than other people?
  • What product or service can you offer?
  • Who is your potential client?
  • What will you get paid for?

The answers to these questions will help you in choosing a suitable and profitable niche.

Create a financial model for starting a business

Financial model is the accounting of current and future (potential) sources of income. In other words, it is company economics.

You need to determine four important indicators to create an effective business-model:

  • Product cost. How much money do you want to make from selling goods or services?
  • Demand level. How many goods (services) will you sell per month?
  • Production costs. How much money will you need to create 1 product (service)?
  • Constant expenses. What payments will you need constantly, regardless of production volume?

It is the main part of your business-plan.

Find sources of funding

After preparing a business plan, you will understand how much money you need to start a business. The final amount of funds is determined by several factors – for example, the type of commercial activity, the area of economics etc.

All sources of financing can be divided into two categories – your own money and borrowed capital. Second group, in its turn, includes: credit, grant, investment and friendly loan (may be your friends or acquaintances will not even demand interest when you return the borrowed money).

Check the documents, which you need to start a business

You need to know, that some types of business in USA require special documents – in particular, licenses, certificates, declarations etc. For example, if you want to produce food or, may be, open catering service, you need to check the relevant documents.

Choose a legal form and register a business

The choice of legal form will depend on the commercial characteristics of your business:

  • If you plan to produce goods yourself, you will be better to choose self-employment.
  • If you want to sell others products and hire employees, registering and individual entrepreneurship will be optimal way for your commercial activities.
  • If you have one or more partners, think about creating a limited liability company.

When you choose your legal form, you will need to prepare certain documents to register your business. This will be the final stage – after this you will be able to legally carry out your economic activities on the market.