Despite a tough decade that included a financial meltdown, a recession and a historically slow recovery, small businesses continue to be America’s engine of economic growth. Small firms are the source of new jobs in all sectors, accounting for 61% of net job creation since 2010.
Entrepreneurship and business creation are critical to a healthy economy. However, there are challenges to starting a new business. Some of these challenges include finding an idea, market research and the development of a business plan. Fortunately, there are many resources available to entrepreneurs that can help them start and succeed in their business.
A good business idea is one that solves a real problem in an innovative way. Often this is accomplished by offering superior value to customers versus competitors. For example, Apple entered the mobile phone market a decade ago as an underdog but quickly became a leader through bringing a revolutionary product to market.
Once a business idea is developed it is important to carry out market research to determine how viable the idea is. This is done by analyzing market conditions and the current state of competitors. The results of this research will be recorded in a business plan, which is a document that formalizes the project’s elements (marketing strategy, objectives, commercial strategy, profitability forecasts and legal form) in a structured way.
Lastly, the process of establishing a business is completed by filing documents with the state’s agency for business registration. Once registered, a tax identification number and bank business accounts are usually required to open the doors of a business.