In recent years, there has been a big rise in new businesses and entrepreneurs across the United States. Last year alone, the U.S. Census Bureau reported almost 5.5 million new businesses being started. On average, about 4.7 million new businesses are launched each year.
If you’re thinking about starting your own business, you should know that it takes planning, effort, and a willingness to take some risks. This step-by-step guide will help you take your idea and turn it into a real business. It will walk you through key actions like building a website, creating your brand, and finding ways to make money as an entrepreneur.
Still deciding what kind of business is right for you? You can explore your options with the Wix Business Launcher. This tool uses AI to suggest business ideas that fit your skills and goals. It also provides market research, tips for earning money, and a launch kit to help you get started with confidence.
How to Start a Business
Here are 10 helpful steps to guide you as you become an entrepreneur:
- Come up with a business idea
- Learn about your target customers
- Try out your idea
- Use a business plan template
- Build your website
- Find the right partner(s)
- Grow your network
- Manage your finances
- Create a strong brand
- Offer something valuable in your market
01. Come Up with a Business Idea
Start by choosing a business idea that helps you stand out. For instance, if you want to start a clothing line, think about what will make it different. Will your products be eco-friendly or handmade? Once you have a clear direction, you can start thinking about names for your business or use a business name generator for ideas.
Besides standing out, it’s also important to choose something you care about. What problems do you feel strongly about fixing? For example, are you focused on reducing waste caused by plastic straws? Your chances of success go up when you focus on what you enjoy, what you’re good at, and what people need.
Take Kangaroo Hanger, for example. Founder Angus Willows started the business because he was frustrated with hangers that didn’t work well. After doing some research, he found out that most hangers had design problems and were wasteful. This personal problem turned into a business idea that made a difference in a large industry.
02. Learn About Your Target Customers
A business idea might sound great, but you need to know if people are actually willing to pay for it. A common reason many businesses fail is because there’s no real demand for their product or service, as shown in a 2021 report by CBInsights.
Arkady Kovalev, founder of Heroes INN, saw this happen to other comic book stores before starting his own. Many of them failed because they didn’t understand what local customers wanted. Arkady spent a full year doing research before launching his business in Mönchengladbach, Germany. Today, Heroes INN attracts both local visitors and travelers from across Europe.
As you do your own research, write down details about the people you want to reach. What age are they? What are their interests? Where do they live? This will help you shape your idea around your audience.
03. Try Out Your Idea
Before you fully launch your business, test your idea with a trial run. This will help you see if people are interested, understand how they respond to your product or service, and figure out where you can make improvements.
This stage is a good time to share your idea with real customers. You could hand out samples, hold small events, or work with individuals to get their opinions. The more you learn from feedback, the better your product or service will become.
04. Use a Business Plan Template
Running a small business takes a lot of planning. You’ll need to decide what type of business you want, understand your idea, and figure out how to bring it to life.
Start by using a business plan template. It will help you organize your ideas, including your mission, marketing plan, operations, and more. A clear business plan will help you see your goals and work toward them.
You should also write an executive summary. This is a short version of your business plan that can be helpful when you’re looking for a partner or asking for funding.
05. Build Your Website
Every business needs a website. Whether you’re selling online, letting people book appointments, or just sharing information, your website will help people find and trust your business.
Chef Tammy Maki credits much of her business success to having an online store for her chocolate brand, Raven Rising. She said it helped her connect with customers and understand their needs, even through tough times.
To build your website, pick a template and adjust it to match your style. You can start from scratch or use an AI website builder. Make sure your website includes important pages like a homepage, about page, and contact form. Once it’s built, choose a domain name and hosting provider to put your site online.
Tip: Wix also offers free tools like a logo maker, invoice creator, QR code generator, and more to help you grow your brand.
06. Find the Right Partner(s)
While running a business alone can work, having a good partner can help you see things you might miss. A partner can bring new ideas and share the workload.
Think about the traits you want in a partner and the people you know who have those traits. When you reach out to them, have a basic plan ready—your executive summary is a great start.
Your first hire or business partner can shape your company’s culture. It’s important to build a shared understanding early on, even if your team is still small.
07. Grow Your Network
Starting a business doesn’t mean doing it alone. Getting advice from experienced mentors can help you make better choices and avoid common mistakes.
To grow your network, go to events, trade shows, or community meetups. You can also host your own events or build online groups to connect with other business owners.
08. Manage Your Finances
Understanding your business finances is very important. Start by figuring out how much money you need to start. Think about costs like materials, labor, supplies, rent, marketing, and more.
Try to keep your costs low in the beginning, especially if you’ll need outside help. When you know your expenses, look at your personal financial situation. How much can you invest? If you plan to ask others for money, putting in your own money first shows that you’re serious.
Once you have the funds, open a business bank account. This will help you track spending and earnings, and keep your finances organized.
09. Create a Strong Brand
A strong brand makes your business easy to recognize and trust. Your brand is more than just a logo. It includes your values, how you speak to customers, the colors and fonts you use, and how you present your company.
Entrepreneur Editor-in-Chief Jason Feifer has built his personal brand with his website, podcast, newsletter, and book—all sharing the name “Build for Tomorrow.” His consistent look and message make his brand stand out.
10. Offer Something Valuable in Your Market
Now that your product or service is ready, your brand is strong, and you’ve made connections, it’s time to go to market. Think about how you’ll let people know about your business. You might share helpful content online or practice a short pitch that explains what makes you different.
A clear and focused message will help people understand why they should choose your business.
Ready to Start Your Business?
Starting a business is about more than just having a good idea. The Kauffman Foundation reported that in 2021, about 81.7% of new businesses survived their first year. That means nearly one in five did not. You’ll need to be ready for both the highs and the lows.
Being your own boss can be rewarding, but it can also be stressful. It may impact your personal life and relationships. That’s why it’s important to build both emotional and financial support systems.
Here are some signs that show you’re ready to become an entrepreneur:
Learn to Handle Rejection
Many businesses fail in their first year. You’ll need to get used to hearing “no” and learn how to bounce back.
Author J.K. Rowling has shared her own rejections, even tweeting two of them in 2016. Her story reminds others not to give up.
Dr. Leslie Becker-Phelps, in her book Bouncing Back from Rejection, says taking care of yourself can help. This might mean meditating, going for a run, or listening to music—whatever helps you feel balanced again.
Have a Steady Flow of Funds
Money is one of the biggest challenges new business owners face. Early funding might come from savings, but you might also need loans, credit cards, or help from family.
You also need to plan for long-term profits. Doing strong market research will help you know if your business idea is in demand and how big your customer base could be.
Have a Mentor
Mentors can make a big difference. A Kabbage poll found that 92% of business owners said mentors helped their businesses grow and survive.
Oprah Winfrey once said Maya Angelou was her mentor, friend, and guide. She shared that one of her favorite lessons from Maya was, “When you learn, teach. When you get, give.”
You can find a mentor through programs like SCORE, local Small Business Development Centers (SBDCs), and Women’s Business Centers.
Be Passionate About Your Idea
Some of today’s biggest businesses, like Uber and WhatsApp, were started during tough economic times. Their founders stayed focused because they truly believed in their ideas.
For inspiration, look at Aaron Carty, who followed his love for pugs and opened Cuppapug, a cafe that reflects his passion.
Be Comfortable Taking Risks
Taking risks is part of being an entrepreneur. Mark Zuckerberg once said that not taking risks is the biggest risk in a fast-changing world.
Some common risks include leaving a stable job, giving up personal time, investing your own money, or launching a product that might not succeed.
If you’re not fully ready, that’s okay. Start by making small changes in your career or building habits that bring you closer to your goal.
