Start a Business: Step-by-Step Guide for Absolute Beginners

Chances are that if you are reading this blog post, you are probably looking for some guidance on how to start a business.

I was in the same position as you when I first started selling online and went through a lot of trial and errors along the way learning the long and hard way.

Starting a business is one of the most exciting and rewarding journey tasks you can ever embark on. However, it can be quite daunting, especially if you are new to entrepreneurship.

From ideation to execution, there are countless steps involved in creating a successful business.

I will share with you 9 essential steps for you to follow to turn your business idea into a real business and also recommend you a great reference book.

Step 1: How Your Business Idea

Every successful business starts with a great idea. Your business idea should solve a problem, fulfill a need, or offer something unique to your target audience. Here’s how to brainstorm and refine your idea:  

• Identify your passions and skills: What are you good at? What do you enjoy doing? 
• Analyze competitors: Study their strengths, weaknesses, pricing, and marketing strategies.  
• Identify your unique selling proposition (USP): What makes your business stand out?  

Backlinko is a perfect SEO resource and tool website for new businesses because it provides you with a wealth of information about SEO best practices for you to get your site ranked in the search engines. Best of all it is FREE.

Spyfu is another great paid tool to use to see what competitors are doing online with their SEO and ads strategies. They offer a free trial for you to use and try out and low cost monthly and annual plans suitable for businesses of any size.

Step 2: Conduct Market Research  

Market research is critical to understanding your industry, target audience, and competition. Here’s what to focus on:  

• Define your target audience: Who are your ideal customers? What are their demographics.
• Research market trends: Look for gaps in the market or emerging industries.  
• Validate your idea: Talk to potential customers, conduct surveys, and analyze competitors to ensure there’s demand for your product or service.

Google Trends is a great free tool to use to find what search terms are trending and Neil Patel’s ubersuggest is great to narrow down on long tail keywords that are highly targeted with low competition.

Step 3: Write a Business Plan  

A business plan is your road map to success. It outlines your goals, strategies, and financial projections. Key components include:  

• Executive summary: A brief overview of your business.  
• Business description: What your business does and its mission.  
• Market analysis: Insights from your research.  
• Organization and management: Your business structure and team.  
• Products or services: What you’re offering.  
• Marketing and sales strategy: How you’ll attract and retain customers.  
• Financial projections: Revenue, expenses, and profitability forecasts.  

SBA.gov offers great free advice on writing a business plan.

Step 4: Choose a Business Structure  

Your business structure affects your taxes, liability, and operations. Common options include:  

• Sole proprietorship: Simple and inexpensive, but you’re personally liable.  
• Partnership: Shared ownership with one or more partners.  
• Limited Liability Company (LLC): Combines liability protection with tax flexibility.  
• Corporation: More complex but offers strong liability protection.  

Consult a legal or financial advisor to choose the best structure for your business.

I use LegalZoom and they make it easy and affordable for anyone looking to get their business legal forms done quickly.

Step 5: Register Your Business and Obtain Licenses  

Once you’ve chosen a structure, you’ll need to:  

• Register your business name: Ensure it’s unique and complies with local regulations.  
• Obtain necessary licenses and permits: These vary by industry and location.  
• Get an Employer Identification Number (EIN): Required for tax purposes if you’re in the U.S.  

Again, LegalZoom is my go to choice for this purpose. You can also get free resources by going to your local County website or SBA.gov.

Step 6: Set Up Your Finances  

Proper financial management is crucial for your business’s survival. Here’s what to do:  

• Open a business bank account: Keep your personal and business finances separate.  
• Set up accounting software: Track income, expenses, and taxes.  
• Secure funding: Explore options like personal savings, loans, investors, or crowdfunding.  

There are many banks out there. I use Capital One for my business checking and credit card accounts because they have a low minimum balance requirement and low service fees.

The credit cards offer great perks such as cash rewards and no annual fee for you to build your credit history. If you prefer higher cash reward or want travel reward, then a low annual fee will apply.

If you are looking for ways to earn cash reward or discounts and business-related services, read this article on a popular cash reward app.

QuickBooks online is the perfect solution for accounting purposes for small businesses. Very low cost and no software required.

Step 7: Build Your Brand and Online Presence  

Your brand is how customers perceive your business. To build a strong brand:  

• Create a logo and visual identity: Use consistent colors, fonts, and imagery.  
• Develop a website: Ensure it’s user-friendly and mobile-responsive.  
• Leverage social media: Engage with your audience and promote your products or services.  

Canva is an easy-to-use creative design app that I use to create logos and images for my online businesses.

Pexels is a royalty free image provider that I use for all of my websites.

Hostinger offers an ultra-cheap all in one solution to start any type of online business. You can get a free domain name and create a blog or ecommerce site using the power of AI.

Step 8: Launch and Market Your Business  

When you’re ready to launch, focus on marketing to attract customers:  

• Use digital marketing: SEO, social media ads, and email campaigns.  
• Network: Attend industry events and build relationships.  
• Offer promotions: Discounts or free trials can incentivize customers to try your product.  

Linkedin is a great way to connect with industry and like-minded people and is free to use.

Google Adwords is a paid service that you can use to promote your business to targeted visitors on Google, where literally most people go to find what they want online.

Step 9: Monitor and Adapt  

Starting a business is an ongoing process. Continuously monitor your performance and adapt to changes:  

• Track key metrics: Revenue, customer acquisition cost, and customer satisfaction.  
• Gather feedback: Listen to your customers and improve your offerings.  
• Stay informed: Keep up with industry trends and innovations. 

Any hosting and e-commerce platform will provide you with key metrics for you to use and analyze your site and business performance.

Google Analytics is a free service that provides a wealth of information related to SEO traffic to your site.

Survey Monkey is a paid tool you can use to collect feedback from your customers.

Recommended Resource: How to Start Your Own Business by Entrepreneur Press  

Why this book is a must-read:

If you’re looking for a comprehensive guide to starting a business, I highly recommend How to Start Your Own Business by Entrepreneur Press.

This book covers everything from brainstorming ideas to launching and growing your business. It’s packed with practical advice, real-world examples, and actionable steps to help you succeed.  

I used the older 6th edition:

Here are some of the benefits of the book:

• Step-by-step guidance: Perfect for beginners and experienced entrepreneurs alike.  
• Expert insights: Written by industry professionals with years of experience.  
• Comprehensive coverage: Includes tips on marketing, financing, and legal considerations.  

and much more. It’s just a great general reference book that will come in handy time and time again.

You can get the newly updated and highly rated 8th edition on Amazon below:

Final Thoughts  

Starting a business is a challenging but rewarding endeavor. By following these steps and leveraging resources like How to Start Your Own Business by Entrepreneur Press, you’ll be well-equipped to turn your entrepreneurial dreams into reality.

Remember, success doesn’t happen overnight—stay persistent, adaptable, and focused on your goals.  

Good luck on your entrepreneurial journey!  

If you anxious to get started and want to know how you can create a business website online quickly and without any technical knowledge, read this article.