If you have a great idea, chances are you have thought a time or two about creating a business. However, it takes much more than just a storefront and a good idea. From learning how to draft your business plan to finding investors interested in backing your idea, understanding the basic elements of an entrepreneurial journey is essential.

Step 1: Create a detailed business plan.

For any idea that you want to make into a business, you have to create a thorough business plan. When you create a detailed plan, the launch of your business will be much, much smoother. One of the key components to consider when working on your business plan is to analyze the projected financials. There are two types of expenses that you will have to consider in this stage, which include:

·         Fixed expenses: This includes any bill that will remain constant month after month, such as insurance, administrative costs, utilities, rent, etc.
·         Variable expenses: These will be the expenses that change from month to month, such as packaging, shipping, product inventory, etc.
Each of these items should be written down so that you will be able to actually see, in print the amount of money that you need.

The good news is that you do not have to go about completing your business plan on your own. You can utilize the services of online guides, as well as the Small Business Development Center in the area where you plan to open your business. These are free resources that provide a truly invaluable benefit for your business.

Step 2: Discuss your plans with family and friends.

If you have used all of your savings, but still are a bit short on startup money, you should consider going to those that you know first. Don’t worry, you’re not alone when you do this, as up to 81 percent of small business investors are family and friends. The benefit of this money is that unlike a loan from the bank, your friends and family know you and will believe in the abilities you have to succeed. This means that you will have already surpassed a huge hurdle to acquiring the financing that you need. Trying to gain the trust of a lender to invest in your venture can be a huge road block. You will also be able to customize the terms of the loan regarding what is acceptable for you, and your investors, instead of what the bank decides.

While asking for money can be a bit of a daunting task, you can help your family and friends feel more comfortable when you bring your business plan along, in addition to any other materials that are relevant to the discussion and if you are ready to answer any questions that may be posed. You should also be ready to discuss the terms for paying back the investments, the amount of the loan and have a legal representative create promissory notes once the details have been decided.

Step 3: Find the proper lenders.

If you are still in need of additional startup funds, you should visit a credit union or local bank, which are more likely to provide an investment for a small business than larger, corporate bands. This goes back to an old-fashioned concept of, if you are familiar, we are more likely to lend you the money; however, of course, this is not the only requirement for obtaining a loan.

Another place that you can try is to seek out loans from community development financial institutions that are the recipients of grants from the government. The one requirement to qualify for this type of funding is that your business serves or resides in an area that is considered low income.

Step 4: Consider nontraditional funders.

If you end up striking out with traditional lenders, and you do not need a large amount of money, then you should consider seeking the startup funds you need through crowd funding methods. Anyone interested in what you have to offer can contribute, and you will usually provide some type of incentive for this contribution.

The amount that you can earn will really depend on how well you promote the effort. There are some people that have had huge success with these programs, earning from $10,000 to $20,000. You will also have to consider the payback terms, which will usually be a small percentage of the goods or revenues you have and are outlined by the crowdfunding company you decide to use.

Step 5: Tap into other resources.

In order to round out all of your costs, consider entering into a business competition. For example, search for “business grants” and then see what pops up. While there are a number of small business credit cards that can be obtained, fairly easily, this should be a last resort. These cards typically have higher interest rates and wind up offering you more credit than you need, which may set you up for being in debt before you even get the idea off the ground.

Step 6: 3…2…1…Blast Off!

Once you have secured the funds for your business idea, it is time to take action. No matter if you are planning an online store, or an actual brick and mortar storefront, this stage is when you begin making moves. Rent the building, secure your domain and begin to promote.

Starting a business is not necessarily easy, but when you get up and running it will be worth all the time, effort, blood, sweat and tears that you put into it. Remember starting a business and keeping it successful are two entirely different things. This means that you cannot simply stop when you have the business started. Keep in mind, if you have investors in your start up business, you will have to keep them abreast of what is going on. It is also advisable to start paying back these investments as soon as you can, which will provide you with more control over your business.