Ten Steps to Starting a Business

Lessons Learned about Competencies in Business Start-ups

Apr 21, 2009

While small businesses can be quite different from one another there is commonality in the steps they go through to launch a successful start-up.

A robust business start will follow this process to get through the first weeks and months on a solid footing.

1. Start with the vision – a clear statement of “what we will be when we grow up.” The vision becomes the test for rationality for everything else that follows it. The first question about each of these succeeding steps is “How does this fit with the vision?”

2. Next come the values for, as Roy Disney once said: “When you are clear on your values, your decisions are easy.”

3. Next assemble the list of organizational competencies the company will need to reach that vision and build a competitive advantage. A helpful resource on this topic can be found at: http://www.allbusiness.com/accounting/3486880-1.html Some of the more common competencies are:

4. Once the competencies are completed an assessment is done of what talent needs to be recruited, developed, and then managed. This is a process that will be continuous throughout the life of the company.

5. Then comes the mission, a statement of “who we are and why we do what we do.” The mission statement is a meticulous statement of purpose. In the business world it spells out what business the organization intends to compete in and what customers it intends to serve. For other types of organizations it spells out what area it intends to operate in and what constituencies it intends to serve. Its words should be chosen for their meaning rather than beauty. The best mission statements are plain speech with no technical language.

6. Now comes the development of the strategy that will allow the company to reach its vision. The strategy is a plan to integrate the major goals, policies, and planned action steps of the organization into a unified whole. A well developed strategy helps to classify and allocate the organization’s resources into a distinctive position based on its relative strengths and weaknesses, anticipated changes in the external environment, and strong countering actions by intelligent and responsive competitors.

7. When the strategy is complete the relevant strategic initiatives to get the company up and running are identified and implemented. A good source for guidance as to what might be needed here is the Small Business Administration and this specific link: http://www.sba.gov/tools/resourcelibrary/sops/index.html

a. Higher-level goals are now identified and stated. Strategic goals are the major goals that spell out the company’s overall direction and capability

b. For each of these goals the supporting mid level objectives are also outlined. These goals pertain to each part of the organization that support the strategic goals and are often referred to as supporting goals.

8. The performance management system is calibrated to the goals and objectives.

9. The individual development process is outlined and implemented. This is a process that will be continuous throughout the life of the company.

10. The business is launched with regularly planned for recalibration sessions to confirm the progress or make any necessary adjustments.

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