Building a business from scratch is an intricate process that entails a number of
steps. Each of these steps should have specific objectives and measurable outcomes.
The following analysis gives the basic steps followed when building any business
a) Define the business: defining the business entails picking out the best business
idea. A good business idea should achievable and viable. There are a number of
business ideas which can interest an entrepreneur. It is important to list all the ideas
and eliminate the ones that seem non-viable. With the remaining few ideas, the
entrepreneur should carry out intensive research to determine which ideas are most
suitable. Suitability can be based on advice from professionals, personal interest in
the business idea, or an alignment of the idea with the professional qualifications of
b) Set objectives: after settling on a viable idea, the entrepreneur should set a list of
specific objectives which he or she aims to achieve from the business in the shortterm and in the long-run.
These objectives must be measurable and realistic.
Establishing objectives provides a guideline that dictates how the business should be
managed and the expectations that the business should achieve over a particular
c) Carry market study: this is a very imperative stage when developing a new
business. The best way to understand the market is by carrying out a comprehensive
SWOT analysis so as to identify the Strengths, Weaknesses, Opportunities, and
Threats of the new venture with respect to existing market forces. If the business
venture is huge, it is advisable to hire a professional business analyst who will assess
The Process of Building a Business from Scratch
the market and develop a comprehensive SWOT analysis (Parker & Van Praag,
d) Map out the development process: this is the stage where the entrepreneur
develops a process map. Stevenson & Jarillo (2007) explicate that the process map
involves outlining all the key processes that will be carried out in the development of
the business. This involves identifying a suitable location for the business, premises
to be used, and a list of all the infrastructure that will be required to start up the
business. Some of the resources to consider include the number of employees and the
hiring strategy to undertake.
e) List the processes in order of implementation: the processes mapped out in (d)
above need to be prioritized in the order of their implementation. It is very imperative
that this order is determined in a very clear and precise manner so as to avoid any
unnecessary overlapping of activities.
f) Resource sourcing and allocation: one important factor to consider is the
availability of adequate resources that will see through the development of the
business from scratch to a fully operational entity. It is vital to ensure that there are
enough financial resources and in case any limitations are encountered along the way,
then the entrepreneur should have a contingency plan to seek loans from financial
g) Implementation and management: the final stage is the implementation of the
business plan using the process map developed in part (d) above. After complete
implementation, it will be necessary to select an administrative team and ensure that
all employees are assigned well-defined roles.
The steps outlined above require effective and thorough implementation for the
success of the new startup. It should be noted that the success of a new startup is not
only based on the success of implementing the business plan; it also depends on the
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effective management of the business. It is, therefore, necessary to find an
experienced supervisory team that will foresee the effective running of the business.
- Parker, S. C., & Van Praag, C. M. (2012). The entrepreneur’s mode of entry: Business takeover
or new venture start? Journal of Business Venturing, 27(1), 31-46.
- Stevenson, H. H., & Jarillo, J. C. (2007). A paradigm of entrepreneurship: Entrepreneurial
management. In Entrepreneurship (pp. 155-170). Springer Berlin Heidelberg.
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