The reality of building a business, the idea versus the capital and initiative

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This is a step by step guide to starting a business, however the reality of starting a business is in actually starting it.

The most crucial thing to remember about starting a business is to get some cash on hand before anything else happens. I'm not talking about millions of dollars in funding or venture capital, but just enough money to buy supplies to make stock purchases or pay two months' rent while you try to get your business off the ground.

In my experience working for someone who started a small shop with heavy capital, the idea behind the new business is not as important as many new entrepreneurs believe.

I have seen middle aged woman sell fried yams on the side of the road for more profit than a friend of mine with a unique mobile web application concept and the key is that the yam seller at least started the business. She didn't stay at idea. With cash, you're bound to stay at idea stage till you die.

Start selling immediately. Yes, I know that eventually you will need to register the business properly with the proper governmental agencies, but you need to start selling to test the market first and if people want your product at all. I have seen too many people wait too long on business registration paperwork to find no one is interested in the business once they finish.

The location of your business will be important depending on the type of business you want to open. A barbershop must be located where there is a visible market for men to see and go to get their hair cut. A graphic designer can operate from anywhere, like his or her bedroom or any other location where people can access the graphic design services they're providing.

Some people would advice you to research the marketplace to determine what the market needs are or where the gaps in the marketplace are. But many gaps in the market exist because there are no buyers and you may want to consider opening a business in an area that already has a few businesses that provide the same product or service as you plan to offer but that you can offer at a lower price, better quality or in a greater quantity. If you're going to a location where no one is operating a similar business, you are doing the business at a high risk of not being sustainable because you don't know for sure if you're get enough customers to survive.

Mistakes will happen, mistakes regarding pricing, hiring and operating a business. You should also start small and only expand when you can afford to do so.