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In which order do you complete start up tasks ?

I have a basic business plan. I need to buy a piece of $10,000 equipment to start. I have an idea for a logo I need to create an LLC, Insurance, start advertising, find a space, I have a very limited budget. I’m not sure where I should start ! The business involves renting the use of the machine. I initially would do a pop up shop and eventually rent my own space

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Can you rent the equipment instead or borrow, etc?

If rent is possible - then your cost outlay will be lesser.

As a startup, don't over-invest in marketing, focus on the process of fitting your product to your identified market - you probably will keep adjusting products and improve your understanding of customers and even change target customers in the process.

Make possible the product-market fit, then explore a product-market-experience fit with the intention to build continuous delights for customers and smoothen the attraction of new customers. When this is validated, you can make a decision on the next step of your venture.

I am looking at making your business move, we are not yet building a scalable, repeatable, viable business model - we simply making it possible to move correctly towards a customer-centric approach.

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  1. Develop a marketing and business plan. For guidance on this type of planning please see the answers at Micro Mentor Question https://www.micromentor.org/question/4871

  2. Register your business with the State of New Jersey and with the IRS. Based on your profile I agree a Limited Liability Company (LLC) is best. https://business.nj.gov/category/start

  3. Register your business with the IRS https://www.irs.gov/businesses/small-businesses-self-employed/single-member-limited-liability-companies

  4. Based on your capital needs you will probably need financing. If an SBA guaranteed loan appeals to you, you will need to find a local bank that processes them. The SBA does not make loans, it guarantees loans to reduce the risk to banks in making loans to startups. You can read more here: https://www.sba.gov/funding-programs/loans The plans at 1, above are key to obtaining your loan. Without them few financial investors, banks or the SBA will consider financing you.

  5. Execute your plan.

Report Kenneth's answer

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Let's start with your business plan. This should have some clear explanation of what value you are creating for potential customers as well as which customers you think will find this valuable. Before you go and lay out $10k of your own money (or take out a loan for that amount), I would figure out a way to test that what you think those customers want really is what they want. As Quek Joo Chay points out, the first phase of your company is all about proving "product market fit" or that people want what you're doing.

How do you know they want this thing? Do other companies offer this same product in other areas and you think people in your area will want it too? Is this a better / faster / cheaper way for the people who rent this machine from you to do what they are trying to do?

To answer these questions you can start by going out to your potential customers and tell them about what you're doing and see if you can get them to sign up for it before you build it. Even handing out flyers explaining what you're offering them and asking them to email you if they're interested will show that you're onto something. Assuming the $10K to buy the equipment is a significant investment, doing this beforehand will help you learn about your customers' needs and how much they like what you're creating for them.

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