Starting a business is one of the most exciting and rewarding experiences you can have, but how does one begin? There are many different ways to approach starting your own business, but it’s essential to consider your business idea, how much time you have, and the amount of money you want to put into it before making any decisions. We’ve compiled eight steps that will help improve your chances of success when starting a small business.

1. Have the Right Mindset

The public often hears about overnight successes because they make for a great headline. However, it’s rarely that simple—they don’t see the years of dreaming, building, and positioning before a big public launch. For this reason, remember to focus on your business journey and don’t measure your success against someone else’s.

2. Refine Your Business Idea

Most business advice tells you to monetize what you love, but it misses two other very important elements: it needs to be profitable and something you’re good at

3. Know Your Competitors and Market

Most entrepreneurs spend more time on their products than they do getting to know the competition. If you ever apply for outside funding, the potential lender or partner wants to know: what sets you (or your business idea) apart?

4. Create Your Business Plan

A business plan is a dynamic document that serves as a roadmap for establishing a new business. This document makes it simple for potential investors, financial institutions, and company management to understand and absorb. Even if you intend to self-finance, a business plan can help you flesh out your idea and spot potential problems.

5. Choose Your Business Structure

When structuring your business, it’s essential to consider how each structure impacts the amount of taxes you owe, daily operations, and whether your assets are at risk.

6. Register Your Business and Take Care of Paperwork

There are several legal issues to address when starting a business after choosing the business structure. The following is a good checklist of items to consider when establishing your business:

• Choose your business name. Make it memorable but not too difficult. Choose the same domain name, if available, to establish your internet presence.

• Open a business bank account. Keep your business and personal finances separate.

• Choose a bookkeeper or get accounting software. If you sell a product, you need an inventory function in your accounting software to manage and track inventory. The software should have ledger and journal entries and the ability to generate financial statements.

7. Fund Your Business

Small businesses may have to use a combination of several sources of capital. Consider how much money is needed, how long it will take before the company can repay it, and how risk-tolerant you are. No matter which source you use, plan for profit.

8. Market Your Business

You don’t necessarily need to be on every social media platform available. However, you should have a presence on Facebook and Instagram because they offer e-commerce features that allow you to sell directly from your social media accounts. Both of these platforms have free ad training to help you market your business.