Although 2020 was a testing time for many, it saw record numbers of entrepreneurs start a small business. While starting a business can seem complicated, there are a few key steps that you need to follow.

To get you started on the right foot, we’ve put together this step-by-step guide to get rid of any guesswork.

Make sure to take some notes!

1.Decide on the type of business you want to start

The type of business you choose will depend on your current skills and goals. Some common options include online business, brick-and-mortar stores, and freelancing.

These days, online businesses have grown in popularity with many people stuck at home during the pandemic. While these businesses are flexible it can be difficult to get noticed among the crowd, so your marketing efforts will be key.

Next, are brick-and-mortar (physical store) small businesses. The major drawback of this option is usually its upfront costs like rent and equipment. But it’s a tried and tested way to build a business.

Freelancing is another common choice, this is where you sell your professional skills on an as-needed basis. This tends to be the easier option because the only extra variable is marketing yourself.

2. Define your customer persona

Defining your customer persona is integral for your success. It allows you to create a brand that resonates with your customer, gives you a clear target, and ensures that your offer is valuable.

With all the competition in the small-business world, branding is what sets you apart. By knowing your customer you’ll be able to craft an image that resonates with them. You can do this by communicating your values in a genuine way.

But before you build a brand, you need to have a target. Your target will show you where to focus and help you to understand your customer intimately.

Once you know your target, you can tailor-make an offer that is valuable for them. Use what you’ve learned about your customer to solve their problems, needs, and desires.

3. Do your market research

Market research is key to knowing what your competition is doing, what current trends are, and getting to know your customers.

First, you want to know what your competition is doing and how they’re helping your customers.

Then, you want to look at the most popular products and services offered and see what the trends are. You can do this through tools like Google Trends or Neil Patel’s Ubersuggest. This will help you understand exactly what’s going on in your niche and how you can capitalize on it.

The last step is to get in contact with your potential customers. You can do this through forums like Reddit or Facebook groups. This helps you understand what questions customers are asking and what problems they need to be solved.

4. Get your business registered

Registering your business might not be a priority, but it’s an important step of the process.

Business structures include sole proprietorships, partnerships, limited liability companies (LLCs), and corporations.

Most people tend to choose sole propriety, but this can have some nasty consequences because you’re 100% liable for your business’ obligations.

On the other hand, an LLC could be your best option. Although they seem daunting to set up, they can be quite simple with online formation services. The major benefit is that you and your business are separate entities.

5. Get your first customers

Getting your first customers will make or break your business because they’ll test your business’ viability.

Once you’ve served your first few customers you’ll know if your idea is worth pursuing.

But where can you get customers? You can reach out to family, friends or even do a giveaway in bitcoin to bring attention to your services.

After that, it’s time for marketing.

This will help you to scale your business, but if you haven’t followed the previous steps, your business will fall flat.

So make sure that you’re clear on your business type, you know your customer, you’ve done your research and you’ve registered your business. Once that’s done, you can focus on driving as many customers to your business as possible.