How do I start a business?

Thinking About Starting Your Own Business?

Dreaming of being your own boss? Craving financial freedom and the ability to set your own hours?

You’re not alone. Small and medium-sized enterprises (SMEs) make up about 90% of all companies worldwide, and one in eight working-age people is involved in entrepreneurial activity (source).

But before you take the plunge, it’s important to understand that running your own business comes with financial risk, uncertainty, long hours, and high stress. In fact, around 50% of new businesses fail within the first five years.

So, what can you do to give your business the best chance of success? Here’s a step-by-step guide to getting started the right way.

1. Establish a Need in the Marketplace

Before launching your business, make sure there’s a genuine demand for your product or service. Research your industry thoroughly — look at your competitors, target market, and pricing.

It’s also worth talking to others already in the field. Most business owners are happy to share their experiences and lessons learned, which can give you valuable insights into what works (and what doesn’t).

And remember: being great at your job doesn’t automatically mean running a business will be easy. You’ll need to wear many hats — IT support, marketing, finance, and admin — all while delivering your core product or service. Make sure your idea is financially viable and that you can realistically deliver what you promise.

2. Decide on a Business Structure

Before registering your business, you’ll need to decide how you want to operate. Your structure affects your financial setup, tax obligations, and how profits are distributed.

3. Develop a Business Model and Business Plan

Your business model and business plan outline the who, what, where, why, and how of your business idea.

Your business model defines how you’ll make money — for example, a software business might use a subscription model, while training services may use a service-based model. Some businesses combine multiple models to diversify income streams.

Your business plan then brings it all together — setting out your goals, strategies, target market, and financial forecasts. It’s your roadmap to success and a key document if you plan to seek finance or investors.

Read more about What should I include in my business plan?

4. Work Out Your Start-Up Costs

Before you start trading, calculate how much it will cost to get your business off the ground — and to keep it running for the first 6–12 months.

Understanding your start-up costs and working capital needs will help you plan your budget, manage cash flow, and avoid nasty surprises.

We've made a checklist of the most common items you might need before you are able to trade. Read more about What do I need to start a business here.

5. Decide How You’re Going to Finance It

Once you know what you’ll need financially, decide how you’ll fund it.

• Will you use personal savings, take out a loan, or seek investors?

• Your business structure will affect what finance options are available to you.

• Many sole traders start small — even keeping their day job until their business can support them full-time.

Remember, some of the world’s biggest companies started out in a backyard shed!

6. Register Your Business

Once your planning is done, it’s time to make it official.

7. Market Your Business

Even the best product or service won’t succeed if no one knows about it. You don’t need to be a marketing expert, but you do need a plan for reaching your audience.

If hiring a marketing professional isn’t in your budget, start with some simple steps:

• Develop a brand: choose a business name, design a logo, and build an online presence

• Get listed in online directories

• Create a social media strategy

• Promote yourself — brand, advertise, and network

• Build a team of people who share your vision and can help your business grow