First Steps for a Successful Start-Up

The eventual success or failure of your start-up could hinge on the things you do at the very beginning. To make it as an entrepreneur, you'll need a good idea, a solid plan and the ability to execute on the fly.

It's not easy. But by following a few general rules of thumb -- and avoiding the key mistakes that some small-business owners make in the early going -- you can give yourself and your fledgling company the best possible chance to survive and thrive.

Here then, are the first steps to take -- and the steps you'll never want to make. Bear them in mind as you put together a business plan, study your marketplace and test your concept.

Business Plan

First step: Make one. Your plan should make a compelling case for your idea, form the backbone of your case for financing (if you plan to seek outside money) and help you understand your company and how to manage it. The best plans act like roadmaps, with a view of the whole business that can also provide the information you'll need to make decisions every day. The Small Business Administration provides a long list of resources for writing a business plan, while NxLeveL offers 12-week training programs across the country.

Worst step: Jumping in without a thorough plan. Remember the old adage: "Businesses don't plan to fail, they just fail to plan."

Market Research

First step: Know your customer, your marketplace and your competition. Outside of funding your company, market research is probably the greatest challenge you'll face as a start-up. How you do it -- studying demographic tables at the library or online, talking directly to potential customers or competitors, compiling surveys or establishing focus groups -- depends on your business, but the goal is the same. Your mission is to figure out who your customers are, where they are and how they're being served now.