Education & Career Development Essentials

How can you Start a New Business?

Every new business starts with an idea. However, many small businesses stall early on due to a lack of direction and funding. Raising capital is a major element of getting the business off the ground, but banks and investors are unlikely to part with money if a start-up business lacks a solid business plan and a grasp of figures. As part of the business plan, the founders of the company need to consider everything from a company name and logo, a business structure, and the projected turnover figures. Books and courses are available to guide new businesses through these important decisions.

What Is a Start-Up Plan?

A start-up plan is an official document submitted to potential investors and used as guidance to ensure the business progresses correctly. It comprises information investors need to make an informed decision about whether they are prepared to put up some money. The importance of the document means it is something that needs to be polished, professional, and complete. For people who lack experience putting together professional documentation, it is possible to purchase sample business plans that provide a detailed breakdown of what the document should contain, and how to create the necessary content.

What Should a Start-Up Plan Contain?

A good start-up plan starts with an executive summary, which is a brief summation of the rest of the plan to get a reader's attention. Following this is a detailed section on the business proposal and an analysis of the market to show how the business services a particular demographic. Plans usually include information regarding the location of the business, with related statistics such as unemployment rates, a section covering the sales strategy and pricing structures for generating revenue, and the personal and work experience of the company founders. The final section is vital for a lender, as it is a breakdown of the company's financial projections.