Guide to Starting and Operating a Small Business | 2018 Guide to Starting and Operating a Small Business - Page 6

2 Steps to Starting a Small Business “What do I need to do and what comes first?” That’s the question most often asked by people considering starting a business. There is a logical sequence of actions and a process for starting a business. MI-SBDC has created a “Steps to Starting a Business” checklist (page 5) that maps out the tasks in recommended order to help you stay on track, manage the various steps, and give you the confidence of knowing you have considered all the essential elements. 1. Select a business idea. Step #1 is deciding on what type of business you want to start. The first question every entrepreneur needs to ask about his/her product or service idea: “What problem does it solve or what need does it fill?” There are many reasons why consumers make purchase decisions, but the primary one is need. The first question every potential business owner needs to ask about his/her product or service idea— “What problem does it solve or what need does it fill?” 2. Market Research (Feasibility). Market research is the first and most important task you need to accomplish before you start your business, to determine if your idea is feasible, which according to Webster’s Dictionary means “capable of being done; suitable.” Market research is the gathering of facts and figures to make an informed decision about the market potential for your business, about the prospects for success and the direction your business will take – both at the start and periodically as you continue on your business journey. Type of Research Needed: The following describes the type of research needed using the example of a pizza parlor, which is classified as part of the fast food industry: Industry is the big picture of what’s happening in the “total world” of your particular type of business. Look for answers to questions like: What’s happening in the fast food industry these days – how many pizzas get sold in the U.S. or Michigan each year, are there increased sales, specialty pizzas, healthier alternatives, changes in sizes or packaging, more or less pizza parlors in and out of business, etc.? What’s the big picture in the pizza world? Market is the tota VFb67VW'2"'W6W76W2FB'WW"'F7V"&GV7B 6W'f6R( 2R6vVW&ǒFVfRFV'66WBb6&7FW&7F72&W@6VvVG2&Rw&W2vFFBVFFBR6FVfR'WfV&R7V6f26WB 6WG2b6&7FW&7F72VW7F2F7vW"6VB6VFSvBr&R'Wpf7BfBFR&V"6F( 66FW&srgFVFFW'W6w&W@FVFgFV&6VB66&7FW&7F727V62vR"WF6G7W7FW'2&RFRFfGVVR"'W6W76W2FBv'WW"&GV7B"6W'f6RvBWW&66R2FFVfRW"FV7W7FW"Bv&&6v&G2( 2vW&RFW&^( 2RR6fBFW"W7BƖRBFVFW"B6rW6VG2W7BאvVw&2&VrbFW6RVBBrgFVrV6&RFW6P@