Being your own boss starts with launching a business.
Entrepreneurship is one of the most exciting, potentially life-changing things you can do. But how do you start?
Maybe you already have a brilliant product you want to sell online. Perhaps you’ve built an engaged audience on social media. Or, you could be looking for that first business idea. Wherever you are in your business journey, this guide walks you through the 11 essential steps anyone needs to consider.
Ahead, find out how to refine your business plan, analyze the competition, register your business, and make your first sale. Then, keep growing with information on how to scale your business through marketing and funding.
How to start a business in 11 steps
- Develop your business idea
- Do market research
- Source your products
- Create your business plan
- Choose your business name
- Select a business structure
- Funding your business
- Register your business
- Develop a brand
- Launch your business website
- Market your business
Ready to start your business? Create your website today or learn more about Shopify’s tools for selling online and in person.
1. Develop your business idea
Starting a business begins with an idea. What unique product, service, or solution can you offer?
A method many entrepreneurs use to develop business ideas is to identify a niche. A niche is a specialized market segment that may be underserved or overlooked by other businesses. For example, identifying niches in the pet supplies industry could inspire an organic pet food business or a store selling toys for large cats.
Alternatively, you could use the knowledge, skills, or crafts you already possess to find a business idea. For example, if you’re a skilled carpenter, you could start a custom furniture business. Or if you’re passionate about fitness, you could start a personal training service.
Learn more about coming up with a business idea.
Once you have an idea, watch this video for more insights on how to evaluate its profitability and sustainability:
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If you’re looking for an inspiring business idea, try these helpful lists:
- Home business ideas
- Side hustle ideas
- Online business ideas
- Passive income ideas
- Product development ideas
2. Do market research
Starting a business involves more than a good idea. You need to conduct market research to see if there’s demand for your product or service. This involves defining and understanding your target audience, the group of people most likely to buy your product, who will be the focus of your marketing and product development.
A popular way to find your target audience is to create buyer personas to identify their needs and preferences.
Market research can be conducted through surveys, focus groups, and interviews. A broader market analysis includes industry-wide insights from reports and other sources.
Understanding market trends involves studying your industry, competitors, and customer preferences. It’s about identifying long-term trends, search volume for your product, emerging buyer trends, and potential market-impacting factors. Analyzing your competition helps you stand out and define your unique selling proposition, what sets your product apart from others.
You’ll also want to estimate market size: your total addressable market and your expected market penetration rate.
Watch this video on how to conduct a competitive analysis to take a structured approach to market research.
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Get serious with your market research by using these popular analysis formats:
- Competitive analysis how-to guide
- How to use a SWOT Analysis (free template)
- Competitive intelligence definition and guide
3. Source your products
Once you’ve validated your business idea, the next step is to decide how to source your products. Depending on your business, you might make your own goods, collaborate with a producer, or buy from a wholesaler.
For making handmade items, set up a workspace at home or rent a studio. Check the legal requirements for home-based businesses, especially if you’re making food or cosmetics.
If creating products isn’t possible or appropriate, consider partnering with a print-on-demand service. They’ll handle production and shipping. As you grow, you can work with a private label manufacturer to create unique branded products.
For products made in a third-party facility, you’ll need to find a manufacturing partner. The right manufacturer will understand your industry and be a partner to your business.
Reseller businesses source products from private sellers, while retailers work with inventory suppliers, often via wholesale marketplaces. Alternatively, you can use a dropshipping model, where your supplier sends products directly to customers.
For more advice on finding and working with a manufacturer, watch this video:
Read more
Here are three regularly updated lists of product suppliers you can work with:
- Best dropshipping suppliers
- Best print-on-demand companies and sites
- How to find wholesale suppliers
4. Create your business plan
With your business idea validated and product sourcing underway it’s time to map out your strategy by creating a business plan. This document serves as a roadmap for structuring, running, and growing your business. It’s a tool you’ll use to convince others that investing in or working with your business is a wise decision.
Your business plan includes everything from your mission statement, which defines your business’s purpose and values, to your financial projections, which outline your expected income, expenses, and profitability.
One key aspect of your business plan is your sales strategy. Will you sell online, in person, or both? Online sales could be through your own website, marketplaces like Amazon and Etsy, social media, or a combination of all.
Using Shopify, you can streamline your online sales by connecting your store to marketplaces.
Another important part of your plan is your business model. As part of your model, you’ll specify whether your business will sell directly to consumers or to other businesses (B2B).
Follow these five tips to help you write a compelling business plan:
- Know your audience: Understand who will be reading your plan and tailor the content to meet their needs and expectations.
- Have a clear goal: Define what you want to achieve with your business and outline the steps you’ll take to get there.
- Invest time in research: Gather as much information as possible about your industry, competitors, and target market. This will help you make informed decisions and predictions.
- Keep it concise: Your business plan should be clear and straightforward. Avoid unnecessary jargon and keep your sentences short and simple.
- Maintain a consistent tone, style, and voice: This helps to make your business plan coherent and easy to read.
Finally, it can be helpful to look at other business plan examples for inspiration and to understand what a successful business plan looks like.
This video walks you through how to write a business plan:
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It’s important to understand the nuances of an industry before writing a business plan. Below, find tailored advice for popular industries:
- How to start a clothing business
- How to start a jewelry business
- How to start a candle business
- How to sell food online
- How to sell furniture online
- The ultimate guide to selling plants
- How to sell art online
- Guide to launching a bookstore
- How to start a pet business
- How to start a skin care line
Related article
Free Business Plan Template: What To Include for 2025
Quickly and efficiently craft your business plan with our free business plan template. Learn what you should include for your business in 2024.
5. Choose your business name
Choosing a business name is a key step. The name you select should reflect your brand and resonate with your audience. Expert tips for naming a business include keeping the name short and memorable, and not so specific that it restricts your business from growing or evolving.
As you choose your name, also select a domain name. A domain is the address customers will type into a web browser to visit your website or online store. Ideally, your domain should match your business name for consistency.
Before finalizing, ensure your chosen business name isn’t already in use and that the social media handles and domain are available. Once decided, secure it by setting up social profiles and registering the domain.
If you’re stuck coming up with a name to represent your brand, try using a free business name generator.
This video teaches you a simple framework for creating a lasting brand name for your business:
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Dive into more business naming resources:
- How to come up with a brand name
- How to find out who owns a domain name with WHOIS
- How to register a domain name
6. Select a business structure
Selecting a business structure determines the foundation of your business. Your choice influences everything from operations and taxes to personal liability.
What structure is best depends on your business model, industry, funding sources, number of employees, and number of founding members. The simplest business structure is a sole proprietorship, in which you and the business are one and the same entity. While this means you receive all profits, it also means you’re personally responsible for debts and liabilities.
If your business needs more protection, you might consider forming a limited liability company (LLC). LLCs combine elements of a sole proprietorship with those of a corporation, offering you protection from personal liability.
No matter your choice, it’s important to clearly define ownership details, especially if you have a business partner. This includes roles, responsibilities, and ownership stakes. As your business evolves, so can your business structure.
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Learn more about the main business types:
- Sole proprietorship vs. LLC
- What is a C Corp?
- What is a certified B Corporation? How to apply
- The benefits of forming an S Corp
- What is a DBA and when to file one'
7. Funding your business
Even the smallest businesses require funding. While federal grants are unlikely to be available, you can use personal funds, find investors, or take out a business loan to launch your venture.
The Small Business Association also offers funding for specific groups like women, minorities, veterans, and rural businesses.
The cost to start a business varies, with many low-cost businesses able to launch on a budget of hundreds of dollars. Whatever the starting costs, most first-year expenses are reinvested into the business.
For most businesses, the largest costs will be tied to product sourcing and development. However, remember to account for all costs, no matter how trivial, including unexpected ones like insurance and taxes.
A break-even analysis is the process of determining at what point your business becomes profitable. It’s a financial calculation used to determine the number of products you need to sell to cover your costs. Knowing this information will help you price your products to ensure a profit margin.
Typically, you can expect a lower profit margin if you’re selling a high volume of goods, and a higher margin if you sell luxury products.
Knowing how to price your products can be difficult, but with a few basic calculations, you can confidently set prices that make sense. As you’re setting your prices, consider common pricing strategies like competitive pricing, value-based pricing, or keystone pricing.
Setting up a business bank account keeps your personal finances separate. When choosing a bank, consider its reputation, fee structure, and how friendly it is to small businesses.
Managing your finances involves understanding financial statements. Balance sheets list your assets, liabilities, and equity. Income statements show your earnings. Cash flow statements summarize cash transactions.
Managing cash flow is essential to the financial health of your new business. Using a small business accounting tool can help you keep on top of money flowing in and out. Professional accountants can also offer valuable advice.
Being ready for tax time involves managing your finances throughout the year. Understand tax deadlines and the types of taxes your business is liable for. Remember, many purchases like shipping and website fees can be offset as tax deductions.
Lastly, whether you should charge sales tax depends on several factors, including your business’s location. If you need to charge sales tax, you’ll need to get a sales tax permit and to set up tax collection in your store checkout.
For more information on cash flow management, watch this video:
Read more
Get your funding in order with these resources:
- Business financing options
- Best crowdfunding sites and platforms
- Small business grants: where to get funding
- How to start a business with no money
- Business line of credit
8. Register your business
Depending on where you do business, and your business structure, you may have a legal requirement to register your business with local and national governments. Check with your local authority to see what you need to do.
In some cases, you may not need to officially register your business. For example, sole proprietorships operating under the owner’s name, making under a certain threshold in revenue, aren’t required to officially register in many locations.
Business registration helps protect yourself and employees in the event of unexpected hardship and lets you obtain corporate services such as business insurance.
Depending on the business structure, you may be subject to personal liability in legal matters related to your business. Before you purchase an insurance policy, talk to a professional to see if personal liability protection is necessary.
Other types of business registration include registering a trademark or filing for a patent to legally protect intellectual property like an invention or your business name. You may need to register with the IRS or your country’s tax body to collect and pay taxes.
Depending on the type of products and services you sell, you may also have a legal requirement to apply for a business license or permit.
In the US, licensing requirements vary by state and industry. If you do need a business license, be sure you have essential details like a business name, address, and employer identification number before starting your application.
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Registering your business makes it easier to secure trademarks, insurance, and other business essentials.
- What Is a trademark? How to register
- Guide to workers’ compensation insurance
- Guide to professional liability insurance
- Common types of business insurance
- Free terms and conditions generator
9. Develop a brand
Creating a brand is essential to attract and retain customers when competing against other businesses with similar offerings. Your brand is not just a name or logo. It tells the story of your business and ensures all products, content, and communications are associated with you.
To build a brand, start by defining who you are, what you sell, and the mission you set out in your business plan. Think about how you want customers to feel when they interact with your website or services. These insights will guide your brand strategy and help shape the tone and language that constitutes your brand voice.
Develop a style guide to keep your brand voice and visuals consistent. Your guide should contain specifications for your logo, fonts, and color scheme. Even without design skills, you can create a simple logo using a free online logo generator.
Product images and videos are crucial brand components for ecommerce businesses. Use clear, high-resolution photos to show the details of your products and lifestyle photos to inspire customers. If you’re on a budget, you can take photos with a smartphone and basic lighting. Stock photos are also a good temporary solution.
Ensure your visual identity is consistent across all touchpoints, from your website to product packaging. A seamless experience reinforces your brand and builds customer loyalty.
Watch this video for an introduction to business branding:
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Use these resources to infuse your brand into your business’s images, copy, and packaging materials:
- Unboxing experiences and ideas
- How to craft a brand story
- How to write words that sell
- How to set up a product photography studio at home
- Free online image resizer
10. Launch your business website
When branding is set, launch your business website. If your business will sell products or services online, use an ecommerce website builder that will let you add selling features to your site.
With Shopify, you can build a complete online store including product pages and a checkout. You can add extra features relevant to your business by downloading apps from the Shopify App Store for tasks like customer support, product management, bookings, and returns (including many free apps).
When you use an ecommerce platform, designing your site is straightforward thanks to drag-and-drop tools and predesigned store themes. Simply choose a suitable theme, then customize it with your brand’s fonts and colors.
Arrange your homepage, and upload your product images to product pages. Add content to your About Us page. You’re now ready for a soft launch to test your site, gather feedback, and make tweaks before the grand opening.
Get inspired with these standout online stores created with Shopify:
Read more
Find more website creation help in these resources:
- How to create a website
- Tips for opening an online store
- Store launch checklist
- Website template quiz
11. Market your business
Marketing is reported as one of the most challenging aspects of running your own business—but it’s also the area where you will spend much of your time and budget. A solid marketing strategy is essential to drive traffic to your store or website and convert visitors into buyers. Your business plan should include a marketing plan outlining your strategy for reaching your target audience.
For more, see these marketing plan examples.
Explore different marketing tactics to find the best way to reach your customers:
- Appeal directly to customers by taking pre-orders, running giveaways, and offering discounts.
- Consider content marketing formats like blogs, videos, and social media to capture organic interest.
- Email marketing is effective for converting leads and encouraging repeat business.
- Online ad platforms including Google Ads and Facebook ads expose your business to a large online audience.
- Social media platforms like Instagram, TikTok, and Facebook offer ways to engage with your audience and sell products.
Social media features like Instagram Shopping and TikTok Shop enable businesses to create in-platform storefronts to sell directly to users.
Ensure your marketing efforts include strong calls to action, whether directing customers to shop directly or visit your website. Use tools like Google Analytics to track performance and refine your strategy. Understanding ecommerce metrics will help you optimize your marketing spend and focus on what works.
Read more
Learn more about how to market your business to consumers:
- Abandoned cart email tips
- Welcome email examples
- Industry leading ecommerce SEO guide
- Beginner’s guide to Google Shopping ads
- Beginner’s guide to Instagram marketing
- Facebook marketing guide
- Guide to YouTube marketing
Gather customer feedback through surveys or analysis of support tickets. Conduct regular business reviews to evaluate financial health and market position. These steps will give you the confidence and clarity needed to make larger investments.
Seek additional funding
If you’re looking to grow, consider additional funding options. Update your business plan with your vision for growth, gather financial statements, and refine your elevator pitch. A business mentor can be invaluable in preparing your pitch by offering advice and feedback.
Explore funding sources like small business loans from banks or credit unions, grants from organizations, and crowdfunding campaigns to raise money from the public.
Build your community
Community is an increasingly important factor in businesses’ success, especially for those in niche markets. Whether you’re serving breast cancer survivors, Indigenous communities, or any niche group, engage authentically: listen, reply, and ask for feedback as you grow.
Effective community management involves monitoring conversations, engaging with customers, moderating discussions, and measuring brand perception.
Expand your team
As you grow, focus on what tasks require your involvement, and which can be delegated to others. However, only hire employees when there’s a clear need for a human solution that can’t be automated or addressed in another way.
For instance, use apps to automate processes like customer support communication and financial reporting. For additional support, consider outsourcing one-off tasks to freelancers and virtual assistants.
Explore international markets
As you grow, consider introducing your business to comparable target markets in international markets. If you plan to ship internationally, ensure compliance with destination country laws and customs paperwork.
Consider making duties and taxes transparent at checkout to avoid surprises for your customers.
From first-time sellers to global retailers, Shopify works for everyone. See plans and pricing.
Read more
- How To Sell Online: A Step-by-Step Guide
- Know Your Customer: How To Build Buyer Personas (Free Template)
- How To Brand Your Business: A Guide for Entrepreneurs
- You’ve Met MrBeast, the YouTuber. Now Meet Jimmy, the Business Mogul.
- 9 Dropshipping Coffee Suppliers
- Pre-Orders Add to Your Bottom Line—How Do They Work?
- 6 Dropshipping Tips From the Ecom King
- How To Market Your Business on Social Media: 15 Effective Ways
- How To Print Your Own Book: 3 Places To Self Publish a Book
- What Is Warehousing? Definition and Guide
How to start a business FAQ
Can you start a business with no money?
To start a business with no money, consider low-investment options like a dropshipping store or a print-on-demand business. These business models allow you to start a business for minimal costs and fund growth through bootstrapping. You can also explore small business loans or crowdfunding campaigns. Leverage your existing skills and use free tools to get started.
How can you start a business with just an idea?
Once you have a business idea, you’re already on your way. Here are steps to turn the idea into a business:
- Research your idea, product, market, and audience.
- Source products, vendors, or raw materials.
- Write your business plan.
- Choose your business name (and domain).
- Decide on a business structure and register it with the government.
- Fund your business and manage your finances.
- Develop a brand strategy and identity (choose a name, design a logo, etc.).
- Build and launch your website.
- Market your business (set up social media, create a marketing plan, etc.).
What are the best funding options for startups?
Funding can help you grow your business. Consider these funding options:
- Small business loans from banks, credit unions, or alternative lenders. A financial adviser can help you choose the best option.
- Small business grants from organizations that align with your business’s values. These don’t need to be repaid but may have non-monetary expectations.
- Crowdfunding campaigns to raise money from the public, often offering incentives like products or memberships.
When should you start a business?
There’s no perfect time to start a business. Begin when you have the time, attention, and funds to commit. Starting while still employed allows you to test your idea with less risk before transitioning to full-time entrepreneurship.
What do you need to start a business?
To start a business, you’ll need:
- A business idea
- Startup funds (personal savings, a loan, or other capital)
- A viable market or audience
- A way to reach and sell to that market (like an online store)
- Passion and determination to build from scratch
How do I choose the right business structure?
To choose the right business structure, consider the following:
- Types of structures: Familiarize yourself with options like sole proprietorships, partnerships, LLCs, and corporations. Each has different legal and tax implications.
- Liability: Determine how much personal liability you’re willing to take on. Structures like LLCs and corporations offer more protection against personal liability.
- Tax implications: Understand how each structure is taxed. For example, LLCs can choose how they want to be taxed, while corporations are taxed separately.
- Future growth: Think about your long-term goals. If you plan to expand or seek investors, a corporation might be more suitable.
- Legal requirements: Research the registration and compliance requirements for each structure in your area.
- Professional advice: Consider consulting with a legal or financial advisor for personalized guidance.
What’s the best way to start a business?
The best way to start a business is to take the leap. Many businesses can be started with little experience and a low budget. Success often comes from matching the right product with the right customer at the right time. Founders who understand their market and build a compelling brand tend to succeed. Define what “success” means to you and align your business plan with that goal. After launching, you can refine your approach based on customer feedback and market trends.
Additional research by Wesley Ng and Leah Mennies
