The 20-Step Guide to Starting a Business Today

Dominique Harroch
Thu, 31 Jul 2025 15:54:02 +0000
Starting-a-tech-company, Starting-a-franchise, Starting-your-business, Opening-a-business, Startup, Startup-advice, Starting-a-microbusiness, Startup-basics, Startup-growth, Starting-a-business

By Dominique Harroch and Richard D. Harroch

Starting a business today requires more than just passion or a good idea. It demands careful planning, strategic execution, and the flexibility to evolve as markets shift and customers grow. This 20-step guide walks you through every major milestone—from setting your vision to managing finances, scaling operations, and protecting your brand. Whether you're launching a product, offering a service, or building a tech startup, these steps are your modern playbook for success.

1. Clarify Your Vision and Commitment

Every successful business starts with a clear purpose. Before anything else, define what your business stands for, what problem it solves, and why it exists. Your vision serves as your North Star—guiding decisions, attracting talent, and inspiring customers. But it’s not just about inspiration. You must also assess your commitment. Are you ready for the uncertainty, risk, and time it takes to build something from scratch? Clarifying your purpose ensures that when challenges arise, you’re not just chasing profits—you’re working toward something meaningful.

👉 Do You Have a Clear Business Vision? Find Out Why Your Success Depends on It

2. Validate Your Business Idea

Before you invest time, money, or energy, confirm that there’s a real need for your product or service. Validation means researching your audience, testing the concept, and collecting feedback. Build a prototype, set up a landing page, or talk to potential customers. Are they willing to pay for it? Are you solving a pain point or just offering a nice-to-have? The earlier you validate, the fewer resources you’ll waste chasing an idea that doesn't resonate.

👉 How to Test a Business Idea: 11 Strategies

3. Conduct Thorough Market Research

Market research helps you understand your competitive landscape and customer behavior. Study market size, trends, pricing models, and your competitors' strengths and weaknesses. Dig into what customers complain about and where gaps exist. Use primary methods (interviews, surveys) and secondary sources (industry reports, competitor websites). This research gives you the insight to position your business strategically, tailor your messaging, and avoid launching blindly.

👉 11 Simple Tips for More Effective Market Research

4. Choose a Business Name and Secure a Domain

Your business name is more than just a label—it’s the foundation of your brand. Choose a name that reflects your identity, is easy to pronounce and spell, and can scale with your growth. Then check domain name availability and register the .com version if possible. Run a trademark search to avoid future legal issues, and secure matching social media handles. A name that's legally clear and digitally available saves time, money, and headaches later.

👉 5 Steps for Naming Your Business

👉 7 ChatGPT Prompts to Help You Name Your Startup

5. Select the Right Legal Structure

Choosing a legal entity is a foundational decision. A sole proprietorship is simple but leaves you personally liable. An LLC offers protection and flexibility. Corporations allow for scalable ownership and outside investment. Your choice affects your taxes, your liability, your legal obligations, and your funding options. Don’t guess—consult a legal or tax advisor to get it right from the beginning.

👉 Everything You Need to Know About Business Entity Types

6. Register and Legalize Your Business

With your entity chosen, it’s time to make your business official. File your Articles of Incorporation or Organization with your state, apply for an EIN (Employer Identification Number) from the IRS, and obtain local licenses and permits. These steps vary by industry and location, so check with your local Small Business Administration office or state website. Legal compliance isn’t just paperwork—it’s your license to operate.

👉 How to Register Your Business in 5 Steps

👉 Legal Requirements for Starting a Small Business: 10 Things to Know

7. Create a Lean Business Plan

A business plan doesn’t need to be a 50-page binder—it just needs to answer the right questions. Who is your customer? What problem are you solving? How will you make money? What will it cost? Your plan should also include marketing strategies, sales forecasts, and operational logistics. A lean plan keeps you focused and ready to respond to opportunities or setbacks. It also helps when seeking funding or bringing on partners.

👉 Guide to Creating Your Business Plan

👉 Business Plan Basics: Objectives, Mission Statements

8. Build a Clear Pitch and Presentation

Even if you're not raising money, you’ll need to pitch your business idea often—to customers, collaborators, and future team members. Craft a short elevator pitch for casual conversations and a full investor deck with key details: market problem, your solution, target market, competitive advantage, business model, team, and financial projections. Practice until you can pitch confidently in any setting.

👉 A Guide to Investor Pitch Decks

👉 Tips for Practicing Your Investor Pitch Ahead of the Big Meeting

9. Set Up a Solid Financial Foundation

Open a dedicated business bank account to separate personal and business finances. Set up accounting software or hire a bookkeeper to track expenses, income, and taxes. Monitor cash flow weekly and keep detailed records for compliance and clarity. Understanding your financials helps you make smart decisions and demonstrates reliability to investors, lenders, and partners.

Build your email list, personalize campaigns and boost sales—try Campaigner now!

10. Secure Funding Based on Your Needs

Do you need capital now, or can you bootstrap for a while? If you need outside funding, explore small business loans, grants, angel investors, or crowdfunding. Each option has different expectations—loans must be repaid, equity reduces your ownership, and grants require time to apply. Choose based on your business stage, risk tolerance, and speed of growth.

👉Seed Financing Explanation

11. Protect Yourself Legally and Get Insured

From contracts to intellectual property, legal protection is critical. Use written agreements for services, employment, or partnerships. Consider business insurance policies like general liability, professional indemnity, and cyber insurance. Consult a legal advisor to protect your brand, assets, and reputation. Legal trouble can be devastating—prevention is cheaper than litigation.

👉 Business Forms and Agreements Center

12. Launch a Minimum Viable Product (MVP)

Don’t wait until everything’s perfect. Launch a basic version of your product or service that solves your customer’s core problem. Then use feedback to improve. This agile approach helps you iterate quickly, validate assumptions, and prevent wasted effort building features nobody wants.

👉 How to Test a Business Idea: 11 Strategies

13. Create a Memorable Brand Identity

Your brand is how people remember and trust you. It’s made up of your logo, colors, tone of voice, website, and every customer interaction. Define your brand values and make sure they show up everywhere—from your packaging to your social media captions. A consistent and authentic brand creates emotional connections that turn customers into fans.

👉 Branding a Startup Company: 3 Essential Elements

14. Establish a Strong Online Presence

You need to be found online—period. Build a mobile-responsive website with fast load times, clear messaging, and optimized SEO. Claim your Google Business Profile, set up business pages on social media, and collect reviews. An online presence legitimizes your business and opens the door to organic discovery and digital advertising.

👉17 Key Tips for Entrepreneurs

15. Build a Marketing Strategy That Converts

Marketing brings your idea to life in the minds of customers. Define your marketing goals—brand awareness, lead generation, conversions—and pick the right channels: SEO, content marketing, social media, paid ads, email, or PR. Track what works, refine your messaging, and double down on your best-performing efforts. Marketing isn’t just getting attention—it’s converting attention into action.

👉 Steps to Create a Successful Small Business Marketing Strategy

👉 How to Start Marketing a Small Business—And Why Email Is Still So Effective

16. Implement Cybersecurity and Data Privacy

Protecting your data and customer information is non-negotiable. Use strong passwords, encrypted backups, firewalls, and two-factor authentication. Train employees to spot phishing and comply with data regulations like General Data Protection Regulation (GDPR) or the California Consumer Privacy Act (CCPA). One breach can destroy customer trust and create costly liabilities. Secure your systems now before it's too late.

17. Use Technology and Automation to Scale

Technology allows small teams to do big things. Automate invoicing, email follow-ups, social media scheduling, and customer support using modern tools. Invest in scalable systems early so your operations can grow without breaking. Automation reduces error, saves time, and helps you focus on high-value work.

18. Build a Capable Team or Use Contractors

You can’t build an empire alone. Start by hiring freelancers or agencies for specialized work. As you grow, add part-time or full-time team members aligned with your mission. Create clear roles, expectations, and processes. A strong team doesn’t just get work done—they carry your culture and help scale your impact.

19. Monitor Financial and Performance Metrics

Track your business health through data. Monitor monthly revenue, profit margin, burn rate, customer acquisition cost, and customer lifetime value. Use dashboards and analytics to see what’s working and what’s not. Data empowers you to adapt quickly and stay focused on sustainable growth.

20. Stay Flexible and Plan for Growth

The market will change. Customers will evolve. You’ll need to adapt. Build regular feedback loops, run experiments, and stay close to your data. At the same time, plan for growth by identifying new markets, expanding your offerings, or improving infrastructure. Flexibility plus forward-thinking is the formula for long-term success.

Conclusion on Starting a Business

Starting a business today is more accessible than ever, but it also requires clarity, commitment, and adaptability. From crafting a clear vision to choosing the right legal structure, building a brand, and establishing financial discipline, each step you take lays the groundwork for long-term success. Modern entrepreneurs must be willing to test ideas early, listen to their customers, and constantly refine both their product and their approach. The combination of strategic planning and real-world validation separates the businesses that grow from those that stall.

But success isn’t just about the checklist—it’s about persistence, adaptability, and learning quickly. As you implement the steps outlined in this guide, remember that no business journey is linear. Mistakes will happen, markets will shift, and growth will come with new challenges. Stay focused on your purpose, surround yourself with the right people, use data to guide your decisions, and remain open to change. With consistency and grit, your vision can become a thriving, resilient business.

Related Articles:

The Ultimate Guide to Side Hustles

5 ChatGPT Prompts to Start a Side Hustle

How to Start an Etsy Business

About the Author

Dominique A. Harroch is the Chief of Staff at AllBusiness.com. She has been the Chief of Staff or Operations Leader for multiple companies where she leveraged her extensive experience in operations management, strategic planning, and team leadership to drive organizational success. With a background that spans over two decades in operations leadership, event planning at her own start-up and marketing at various financial and retail companies. Dominique is known for her ability to optimize processes, manage complex projects and lead high-performing teams. She holds a BA in English and Psychology from U.C. Berkeley and an MBA from the University of San Francisco. She can be reached via LinkedIn.

Richard D. Harroch is a Senior Advisor to CEOs, management teams, and Boards of Directors. He is an expert on M&A, venture capital, startups, and business contracts. He was the Managing Director and Global Head of M&A at VantagePoint Capital Partners, a venture capital fund in the San Francisco area. His focus is on internet, digital media, AI and technology companies. He was the founder of several Internet companies. His articles have appeared online in Forbes, Fortune, TIME, MSN, Yahoo, Fox Business and AllBusiness.com. Richard is the author of several books on startups and entrepreneurship as well as the co-author of Poker for Dummies and a Wall Street Journal-bestselling book on small business. He is the co-author of a 1,500-page book published by Bloomberg on mergers and acquisitions of privately held companies. He was also a corporate and M&A partner at the international law firm of Orrick, Herrington & Sutcliffe. He has been involved in over 200 M&A transactions and 250 startup financings. He can be reached through LinkedIn.

Copyright © by Richard D. Harroch. All rights reserved.