If you’re wondering how to start a business in 2024, we’re here to help. In this guide, we’ll look at the essential steps you need to take to make your business a real success.
We’ll cover the initial planning of your new business, the legal aspects of starting a business, getting your finances in order and, finally, preparing for growth.
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Disclaimer: This content should not be construed as legal or financial advice. Always consult an attorney or financial advisor regarding your specific legal or financial situation.
1. Find a business idea
First of all, to enjoy sustainable commercial success when starting a business, you have to find an idea that is not only feasible, but something you feel passionate about.
If you have a shortlist of business ideas in mind, dig a little deeper by carrying out a little market research. Look at brands in your potential niche and find out how their consumers engage with them while looking at overall demand based on public sales or growth data.
Doing so will give you inspiration for your own business ideas. Armed with your market and competitor research, you can consider the following before launching your business:
- What am I passionate about?
- What are my specific skills and expertise?
- Which subject matter am I most passionate about?
- Can I feasibly sell or promote the product or services in my potential niche?
- What unique spin can I put on well-trodden business ideas or concepts to stand out?
- What gaps or weaknesses can I exploit in my potential niche or market?
Ask yourself these questions and you’ll eventually land on an idea that starts as a small business but has the potential to scale while keeping you engaged and inspired in the long term.
Related: Read our guide on essential small business ideas for more small business inspiration.
2. Use market research to validate your business potential
Once you’ve landed on a solid idea, you’ll need to see if it has the potential to turn into a successful business. We just touched on the concept of market research, but now we’re going to drill down a little deeper.
To really validate your concept, you must get under the skin of your industry as well as your target audience. In addition to gathering industry insights and data, you should build buyer personas that represent your ideal target audience at an early stage of developing your business.
During this phase of the operation, it’s also important to conduct extensive market research as well as market analysis. Here are some market research and analysis ideas for your consideration:
- Conduct consumer surveys across channels (phone, email, social media, mobile app, etc.).
- Hold focus groups to gain a deeper understanding of how your target audience might perceive your brand and what your business has to offer.
- Observe how your target audience engages with potential competitors on social media as well as the related subject matter they’re discussing online.
- Explore public data related to your target market to uncover consumer buying patterns as well as sales trends. This will help you validate your idea while giving your business planning a definitive direction — which brings us onto our next point.
3. Create a business plan
Now your idea is validated and you’ve got a handle on your target market, you’ll need to start planning. When it comes to knowing how to start a business, developing your roadmap towards success is a vital skill. Here are some tips to help you navigate the process like a boss:
- Consider your “why”. This will help you gain an understanding of your key motivations for starting your business as well as what you want to achieve
- Outline plans of action or initiatives that represent your brand mission and what you do
- Define your key business goals using timelines and milestones to keep you on track
- Write an executive summary that states all essential information related to your business’s aims, goals, and products
To break down each step in more detail, read our essential guide on how to write a business plan and use our official business plan template to make sure you have all you need to start a business.
4. Get funding, explore finance options
To get your own business off to a flying start, you’re going to need to get the right level of funding. The funding options you explore will depend on the type of business you’re looking to start.
Personal funds: If you’re looking to start a business and scale up, you could use your personal funds or savings to get up and running. Doing so will give you complete control on your decisions, allowing you to scale the business on your own terms. But, it’s worth noting that if your business struggles or fails to achieve profit, you will be solely responsible for paying back any debt.
Crowdfunding: Using dedicated crowdfunding platforms, you can inspire people to donate to your business venture in return for incentives or equity. This can be a very effective form of fundraising—and there have been many crowdfunding success stories over the years.
Gain a line of credit: Akin to obtaining a personal line of credit, you can gain a line of business credit. The terms, limits, and interest rates will depend on the nature of your business as well as factors including your financial history and credit rating.
Get a grant: Another way of securing a healthy level of funding for your startup business is getting a grant. If your business mission is rooted in building a better community or inspiring innovation, you could be eligible for a healthy grant from the Federal Government.
Pitch to investors: Researching investors in your niche and pitching to them is an excellent way to get funding as well as professional backing and expertise. This is certainly an avenue worth exploring if you’re looking for startup capital as well as help with your business’s launch and development activities.
Starting a business with little to no money: This is possible by offering services or products with minimal upfront costs, such as:
- Freelance writing
- Cleaning services
- Event planning
- Jewelry making
- Personal training
- Graphic design
- Landscaping
- Photography
- Digital products
Utilizing free marketing strategies and partnering with other businesses can help reach customers without high expenses. With resourcefulness and dedication, entrepreneurs can launch a successful business even with limited finances.
Interested in learning more about planning for business funding? Our guide covers the cost to start a business in full detail.
5. Legal requirements for starting a business
When starting a business, settling on a water-tight legal structure is vital. Before you officially register your business, you have to decide on a concrete business structure — and the type you choose will impact your business from a legal standpoint. So, take your time when considering these structures.
Sole proprietorship
If you own your business independently, you can opt for sole proprietorship. This means that you will have full autonomy over your business, but you’ll be responsible for all debt, obligations, and finances.
A sole proprietorship is the easiest business legal structure to set up. If you have a little capital of your own, you can apply for a sole proprietorship with ease. You will have complete control over the entire business, but be aware: you will be responsible for the financial as well as legal aspects of the business.
Pros:
- You will be in full charge of business decisions, development and planning
- You will receive all of the business’s profits
- You will find filing for tax simpler
Cons:
- Managing everything on your own could burn you out and limit your potential for growth
- If you hit financial hot water, you will be liable for settling any debts or arrears
Partnership
Combining forces with another budding business owner will give you double the startup as well as another person who is liable for the red tape as well as the financial aspects of the business. More often than not, two heads are better than one — forge the right partnership and you could see your business thrive from the get-go.
Pros:
- You will have twice the skills, perspective, and financial scope
- You will have another person who is responsible for the running as well as financial and legal aspects of the business
Cons:
- If you and your partner disagree on any aspect, this could cause the kind of friction that could derail progress and stunt growth
Corporation
As a corporation, you will separate your personal assets from your business assets. This means that while your company can incur debt and be subject to legal disputes, in most cases your personal finances and assets will remain protected. There are many different forms of a corporation to consider, some of which offer access to some pretty decent investment opportunities.
Pros:
- You will gain access to excellent capital options
- You will benefit from certain tax breaks
- You will be able to protect your personal assets
Cons:
- Corporations can be costly to form and run
- There can be a lot of red tape involved in the running of a corporation
Limited liability company (LLC)
This type of business structure is one of the most common options for new businesses. As a limited liability company (LLC), you will benefit from the legal protection of a corporation while also reaping the tax rewards of a business partnership.
Pros:
- The setup process is relativity straightforward
- You will gain access to a healthy choice of capital and funding options
- You will have a certain level of protection concerning your personal finances
Cons:
- Your investment options can be limited with an LLC
- You can be subject to fairly costly annual maintenance fees
Want more information on how to start an LLC? Our guide has you covered.
Weigh up the pros and cons of each business structure, taking your aims and goals into consideration. At this point, you will want to brainstorm a catchy business name to make it official and bring your brand to life.Once you’ve decided on your brand-boosting business name, you secure the appropriate domain name.
6. Register your business and get the required licenses
The next step in your how to start a business journey is registering your company and getting any required licenses.
By choosing your business name and settling on your business structure, you will have already started the registration process. To complete the registration process and obtain the right licenses, you will need to:
- Check the full registration requirements depending on your legal structure
- Work though the registration requirements of any regions where you’re looking to trade or operate
- Register for any taxes
- Obtain an employee identification number (EIN), if necessary
- File any relevant trademarks
- Find out which business license is relevant to your organization and start the application process
Just remember, forming a business can be a bit complicated, so it's always a good idea to chat with a tax advisor or lawyer to make sure you're doing everything right.
Related: See How to Register a Business to access resource links to all 50 states.
7. Open a business bank account
With your business almost up and running, you may want to open a bank account. In 2024, there is no end of choice when it comes to setting up a business bank account to keep your business and personal assets separate.
You should choose a bank account with benefits and features that suit your business’s size as well as your goals.
Tip: Create a shortlist of business bank accounts with flexible loan options as well as excellent customer service and online banking applications.
To set up your business bank account, you will need:
- EaIN or tax ID numbers
- Your official business name and location
- Date the business was set up or established
- Your Social Security number, address and date of birth
8. Get business insurance
In addition to opening your bank account, you may also need to get business insurance. If you don’t, you could find yourself footing a colossal bill if any unexpected issues, damages or disputes arise.
Even when launching a small business, you will need to cover yourself with the right kind of insurance to protect yourself against any eventuality.
If you’re offering a service rather than tangible goods, it will also pay to get professional liability cover incase of any consumer-facing mistakes you might make. Also, as your business scales, you might also consider employment practices liability insurance. This type of cover will protect you against any potential employee claim or complaint.
Related: Insurance options for small businesses: What’s right for you?
9. Establish your business's online identity
At this point, you will be ready to build your business’s online presence. Your website or online store will be the digital hub of your entire business—so getting the design and the functionality just right is essential.
If you’re interested in starting a website for your business, here are some hand-picked resources to help you out:
- How to start an online store
- How to do SEO: A beginner’s guide for small businesses and entrepreneurs
- Tips to boost sales with Websites + Marketing
Tip: To build an online store that is slick, wonderfully designed, and easy to navigate, try the powerful and easy-to-master GoDaddy Website Builder. Or build an online store with our slick and savvy ecommerce tool and tie your business together with a GoDaddy POS system to accept payments anywhere. GoDaddy also offers a suite of AI tools to help you take your idea online in minutes.
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10. Launch and grow your business
If you’ve followed all of the steps in this how to start a business in 2024 guide successfully, you’ll be ready to kick off.
Once you build a buzz about your big business launch across various channels including email and social media, you can start selling and take measures to grow year on year through marketing campaigns and sales initiatives.
Don’t forget to create a Facebook business page from the very beginning, and on other socials as well, if your audience uses them.
Starting a business in 2024 is a challenging but potentially rewarding venture. Be persistent, play to your strengths, take the time to ensure you’ve covered every base, and you’ll be winning on the commercial battlefield in no time. Best of luck.
Related: Discover our guide on how to start an online business.
FAQs:
How can a beginner start a business?
A beginner can absolutely start a business. As long as you have a clear idea of your goals and a passion for what you do, you can make your business a real success. Follow the steps in this guide and you’ll be up and running sooner than you might think. Also, check out GoDaddy Airo, our integrated AI solution, and discover how it can help get your idea online in just minutes.
How much money do you need to start a business from scratch?
The cost of starting a business will vary depending on your industry or business model of choice. But, research from the US Small Business Administration shows that most small businesses cost around $3,000 to get started. And, the majority of home-based ventures cost $2,000 to $5,000 to set up. For larger ventures, there are several businesses that can be started with a budget of $10,000, such as a landscaping service or a small catering business. With careful planning and budgeting, entrepreneurs can successfully launch and grow their businesses without breaking the bank.
Can I run a business by myself?
There is no reason that you can’t run a small business by yourself. With the right resources and the right approach, you can set up, launch, and operate your business. Going solo is more than possible, but with so much to consider it’s a huge undertaking. As your business scales, hiring a small team or getting a partner on board will be a good idea. That way, you can further accelerate your commercial growth.
What is the easiest business to start?
A service-based business is often considered the easiest to start as you don’t have to deal in physical stock or inventory. But, in 2024, it’s never been more accessible to set up and launch a successful online business. In the digital age, tools exist to help you set up an ecommerce store or build a website without technical expertise. Follow the right steps and almost every kind of business will be within your reach.
How do I start my own business with no money?
Starting a business with no money may seem challenging, but it is possible with some creative thinking. Consider offering a service that requires minimal upfront costs, such as consulting or freelancing. Utilize free resources like social media and networking to promote your business. Look for potential investors or grants, and be willing to start small and grow gradually.
Can you start a side business while working full time?
Yes, it is possible to start a side business while working full time. Many people successfully manage their time and commitments by dedicating evenings and weekends to their side business. It may require careful planning and time management, but with dedication and perseverance, it is definitely achievable to juggle both a full-time job and a side business simultaneously.
Who can help me start a business?
There are many resources available to help you start a business. You can seek guidance from business advisors, mentors, or consultants who specialize in entrepreneurship. Local Small Business Development Centers (SBDCs) and Chambers of Commerce also offer valuable support and networking opportunities. Additionally, online platforms and communities provide access to a wealth of information and advice for aspiring entrepreneurs.
