Small Business Startup Steps: 6 Tips for Opening a Store

Every year, over 100,000 new businesses are established in Vietnam, but not everyone knows where to start. Many people search for terms like “steps to start a small business”, “how to start a business”, or “what’s needed to start a small business” because they have an idea but are unsure of the implementation roadmap.

In reality, most small business models fail within the first 1-3 years, not due to lack of capital, but due to a lack of clear planning and misunderstanding of the market. This article will help you grasp the A-Z small business startup process: from finding a suitable idea, creating a business plan, calculating finances, to marketing and product launch.

If you want to start but are still concerned about capital, experience, or implementation methods, this will be a practical, easy-to-understand, and immediately applicable guide. By following the right steps to start a small business, you will reduce risks, save costs, and increase your chances of success from the initial stage.

Experience 1: Basic steps to start a small business

Step 1: How to choose a small business idea

1. Start with market needs, not just preferences

When learning how to start a small business, many people begin by asking: “What do I like to do?” This is correct but not enough. More importantly, does the market need it?

• Ask yourself: What problems are customers facing?

• What solutions are they searching for on Google?

• Are there any products/services that are not adequately meeting those needs?

A good idea could be:

• A product you've always wanted to create

• A service you see the market lacking

• Or a new solution for an untapped need

In reality, based on my startup consulting experience, successful models often stem from solving a specific problem, rather than merely following trends.

2. Brainstorm correctly to find feasible ideas

If you're unsure where to start, organize a simple brainstorming session.

• Invite 2-3 pragmatic individuals to participate

• Ask open-ended questions: "What small business can I start with little capital now?", "What is lacking in my local market?"

• Write down all ideas, no need to evaluate them immediately

During this process:

• 70% of ideas will not be feasible

• 20% will be average

• 10% can develop into potential small business ideas

The goal of this stage is not to write a business plan, but to broaden your perspective and find the most suitable direction for your capabilities.

3. Leverage personal capabilities to increase success rate

A crucial principle in the steps to starting a small business is not to separate the idea from practical capabilities.

Evaluate yourself:

• What professional skills do you have?

• In which fields do you have work experience?

• Do you have an advantage in relationships, market understanding, or sourcing?

When combining:

• Personal skills

• Practical experience

• Market demand

You will significantly increase your ability to build a sustainable small business model.

4. Validate demand before serious investment

Before officially starting, check if there are actual customers for your idea.

You can:

• Search for related keywords like “home electrical repair service,” “how much capital needed to open a small business”

• Observe competitors in the area

• Ask potential customers directly

Real-world example: If you have worked for many years in the residential electricity sector and notice a lack of reputable electricians in your area, that could be a good opportunity. When you combine professional experience with clear market demand, the ability to attract customers will be much higher than starting from scratch.

Step 2: Define clear business goals

1. Clarify your reasons for doing business

Before creating a small business plan, ask yourself:

• Do you want financial freedom or just additional income?

• Do you want to build a business to sell in the future?

• Or do you just want a small, stable model that provides a living and long-term sustainability?

Each goal will lead to a completely different operational approach.

For example:

• If the goal is to expand and sell, you need to build systems, branding, and scalability.

• If the goal is stable income, you should focus on consistent cash flow and cost control.

2. Determine desired scale from the start

Many people search for "should I start a small business or a large company" but don't understand that scale depends on personal goals.

Determine:

• Do you want to work alone or with a team?

• Are you willing to work 12 hours/day for the first 3-5 years?

• Are you willing to accept high financial risks for rapid growth?

In real-world startup consulting, those without clear goals often constantly change direction: sometimes wanting to expand, sometimes to downsize. This leads to a loss of direction and increased costs.

3. Set specific and measurable financial goals

Don't just say "I want to be successful." Be specific with numbers:

• What is the desired revenue after 1 year?

• What is the minimum monthly profit needed?

• How long until you break even?

Setting clear goals helps you:

• Choose the right small business model

• Calculate necessary capital

• Build an appropriate marketing strategy

4. Align goals with personal life

Small business is not just about making money; it also involves time, family, and health.

Consider:

• Do you want flexible hours or are you willing to compromise?

• Do you have backup income if you don't make a profit in the first 6 months?

Setting goals from the outset helps the entire small business startup process stay on track. When goals are clear, every decision regarding capital, products, marketing, or expansion becomes more logical and consistent.

Step 3: How to choose a memorable business name

1. Name it early for direction

You don't need to wait for everything to be perfect before thinking about brand naming.

• A good name can help you visualize the product/service more clearly

• Creates motivation and the feeling of "this is a serious project"

• Easy to communicate when talking to partners or potential customers

If you find a better name later, you can always change it. At the small business planning stage, flexibility is essential.

2. Prioritize simple, easy-to-remember, easy-to-read names

When researching Vietnamese search behavior, I noticed:

• Names that are too long → difficult to remember

• Names that are difficult to pronounce → hard to spread by word of mouth

• Complex acronyms → difficult to find on Google

A small business brand name should:

• Be a maximum of 2-3 words

• Be easy to read, not cause spelling confusion

• Can be used as a name for a fanpage, website, TikTok

A classic example is Apple – just a short, easy-to-pronounce, and extremely memorable word. Simple yet distinctive.

3. Check for name duplication before deciding

This is a step many people skip in the small business startup process.

Before finalizing a name, make sure to:

• Search for the name on Google

• Check Facebook, TikTok, Instagram

• Research business registrations if you plan to open a company

• Check if the website domain name is available

This helps you avoid legal risks and saves rebranding costs later on.

4. Link the name to benefits or emotions

Some common naming methods in small businesses in Vietnam:

• By benefit: Fast, Clean, Economical

• By target audience: Mom & Baby, Student, Family

• By emotion: Peace of Mind, Trustworthy, Happy

• By personalization: personal name + industry

The name doesn't need to be overly "artistic"; what's important is that it suits the market and is easy to build a long-term brand around.

Step 4: How to build a startup team

1. Choose to work alone or with partners

First, clearly answer:

• Do you want full decision-making power?

• Or do you need someone to share the pressure and responsibility?

• Does this project require diverse skills?

Working alone is suitable when:

• Small model, low capital

• Your skills are comprehensive enough to operate

• Want to control all profits

Have suitable partners when:

• The model requires multi-disciplinary expertise

• Need to expand quickly

• Want to share financial risks

In reality, for small business startup consulting, models with supportive teams often develop faster and more sustainably.

2. Harness the power of synergy

Business history shows many founding duos have created breakthroughs:

• Bill Gates and Paul Allen

• Steve Jobs and Steve Wozniak

• Larry Page and Sergey Brin

• John Lennon and Paul McCartney

Their commonality was not being completely alike, but complementing each other. One strong in vision, the other strong in technical or operational skills.

In building a startup team, the right kind of differences create greater value than the sum of individual members.

3. Find someone to compensate for your weaknesses

This is an important principle when choosing a partner in a small business model.

Honestly assess yourself:

• Are you good at expertise but weak in marketing?

• Are you good at sales but weak in financial management?

• Are you creative but lack systematic thinking?

Instead of looking for someone like yourself, look for someone who:

• Has skills you lack

• Has complementary thinking, not confrontational

• Has similar life values and goals

4. Ensure clarity from the beginning

Whether they are close friends or acquaintances, it's important to clarify:

• Capital contribution ratio

• Specific roles

• Decision-making power

• How to handle conflicts

Many failures in the small business startup process don't come from the market, but from internal conflicts.

Step 5: How to choose business partners

1. Don't cooperate just because you're close friends

Many people assume that close friends will be ideal partners. This is not always the case.

• Good friendship doesn't mean compatible working styles

• Business involves clear financial pressure, goals, and responsibilities

• Work conflicts can easily affect personal relationships

When choosing partners for a small business startup, prioritize trustworthiness and professional attitude over intimacy.

2. Complementary skills instead of overlapping ones

An effective team must have clear role distribution.

Ask yourself:

• Does that person compensate for your weaknesses?

• Are both of you good at the same thing but neglecting other tasks?

• Who is responsible for finance? Who is in charge of marketing? Who handles operations?

If both are only good at the same area, the business will be imbalanced. In a small business model, resources are limited, so every position is important.

3. Alignment on long-term vision

Debating details is normal and necessary. But disagreements on core objectives can have major consequences.

Before cooperating, clarify:

• What are the goals for the next 3-5 years?

• Do you want to grow quickly for resale or maintain stability?

• Are you willing to reinvest profits?

In the actual implementation of small business startup processes, many teams break up because one person wants to expand, while the other only wants security.

4. Assess actual capabilities, not just qualifications

Degrees do not always accurately reflect ability.

When looking for partners or key personnel, you should:

• Observe how they solve real-world problems

• Evaluate their mindset and adaptability

• See if they fit the work culture

For example: A person with an accounting background who also has good communication and creative skills might be a better fit for marketing. In small businesses with limited capital, flexibility and versatility are often more important than an impressive resume.

5. Be clear from the start to avoid risks

Before officially starting, it's advisable to agree in writing on:

• Capital contribution ratio

• Roles and decision-making authority

• Profit-sharing method

• Exit strategy if one party wants to withdraw

Transparency from the outset helps limit future conflicts and protects long-term relationships.

Experience 2: How to write an effective business plan

Step 1: How to create a business plan

1. Summarize the business model

This section quickly answers the question: "What business are you in and for whom?"

• What is the product/service?

• Who is the target customer?

• What differentiates you from competitors?

• Revenue goals for the next 1-3 years?

This section should be concise and clear, allowing the reader to understand the overview in just a few minutes.

2. Market and customer analysis

An effective small business plan must be based on data, not just intuition.

You need to clarify:

• Estimated market size

• Actual customer needs

• Direct and indirect competitors

• Your competitive advantages

You can check by:

• Searching for relevant keywords on Google

• Surveying potential customers

• Observing competitor pricing and strategies

3. Operating model

This section answers the question: "How does the business operate?"

• Where do the goods come from?

• What is the sales process?

• Who is responsible for each task?

• What management tools are used?

In small, low-capital business startups, a simple but clear process will help you control costs well and limit errors.

4. Marketing and sales plan

Without marketing, even good products are hard to sell.

You need to determine:

• Main sales channel: online or offline?

• How much is the monthly marketing budget?

• How to attract and retain customers?

Be specific with actions:

• Run ads or create content?

• Sell through Facebook, TikTok, Shopee, or a dedicated website?

• Are there any grand opening promotions?

This section determines the cash flow in the initial phase of a small business model.

5. Financial plan

The most important part of the small business startup process.

You need to calculate:

• Total initial capital

• Monthly fixed costs

• Break-even point

• Risk reserve for at least 3-6 months

A clear financial plan helps you avoid the situation of "doing business but running out of money."

6. Implementation roadmap

Finally, convert everything into specific timelines:

• Month 1: complete product

• Month 2: market testing

• Month 3: official launch

Creating a detailed business plan is not just for fundraising or presenting to banks, but more importantly, to self-validate the feasibility of your idea.

Step 2: How to write a business description

1. Introduce the business model and legal direction

First, describe specifically:

• What product/service do you offer?

• What industry do you operate in?

• What is the projected scale?

If the legal form has been determined, specify:

• Individual business household

• Limited Liability Company

• Joint Stock Company

Also, explain the reason for choosing that model, for example:

• Want to simplify procedures and save costs

• Want to separate personal and business assets

• Have a direction for fundraising or expansion later

In small business startups, choosing the right legal model helps you mitigate risks and facilitate long-term growth.

2. Clearly describe the product or service

Don't just say "selling cosmetics" or "food business." Be specific:

• What problem does the product solve?

• What is its most outstanding feature?

• How is it different from the market?

For example:

• Better price?

• Higher quality?

• Better customer service?

• Faster delivery?

In a small business model, a clear competitive advantage will help you avoid getting caught in a price war.

3. Define the target customer

This is the part that determines the entire marketing strategy.

Answer specifically:

• How old are they?

• What is their approximate income?

• What problems are they facing?

• What do they usually search for on Google?

For example:

• Students need affordable products

• Office workers need time-saving solutions

• Young families prioritize quality and safety

By understanding your customers, you can more easily build an effective marketing strategy for a small business.

4. Determine pricing and why customers choose you

Many people only set prices based on competitors and forget to analyze affordability.

You need to clarify:

• How much are customers willing to pay?

• What value is that price based on?

• Why do they choose you instead of a competitor?

Customers often decide based on:

• Price

• Quality

• Reputation

• Shopping experience

In the small business startup process, price is not the only factor. Perceived value is what keeps customers coming back.

5. Analyze competitors

A good business description must include a clear competitive analysis.

You should:

• List 3-5 main competitors

• See what they are doing well

• Identify their weaknesses

• Find market gaps

Don't just learn from their successes. Analyze failed models too:

• Did they fail because prices were too high?

• Because of poor management?

• Because they didn't understand customers?

In reality, many small businesses fail because they copy models without understanding the reasons behind others' successes or failures.

Step 3: How to create an operational plan

1. Describe the process of creating the product or service

First, clarify how you create value.

If it's a service:

• What are the steps in the customer service process?

• How long does it take to complete each order?

• Do you need management support software?

If it's a physical product:

• Where do the raw materials come from?

• Is it handmade or outsourced?

• How are packaging, storage, and shipping handled?

If it's a technology product:

• Who developed it?

• How long until the first version is complete?

• What are the maintenance and update costs?

In low-capital small business startups, a leaner process helps you save costs and reduce errors.

2. Calculate full operating costs

This is often underestimated.

You need to list:

• Raw material costs

• Personnel costs

• Premises costs

• Shipping costs

• Software, electricity, internet costs

• Risk contingency costs

A small business plan is only truly viable when you account for all recurring monthly costs, even small ones.

3. Define a clear organizational structure

Even in a small model, you still need to know who does what.

Clarify:

• Who is primarily responsible?

• Who is in charge of sales?

• Who manages finances?

• Who handles customer service?

Clearly defined roles help to:

• Avoid overlapping tasks

• Control personnel costs

• Accurately estimate required capital

In a small business model, one person may wear many hats, but roles still need to be clearly defined.

4. Plan for expansion as scale increases

Many people only plan for the initial phase and forget that when sales happen, new problems arise.

For example:

• Inventory increasing faster than expected

• Not enough storage space

• Unable to process orders in time

You should prepare in advance:

• Do I need to rent a separate warehouse?

• Do I need to hire more part-time staff?

• When should I move to a larger premises?

In the small business startup process, the ability to forecast and prepare for growth helps you avoid being passive when opportunities arise.

5. Actively seek feedback before large-scale implementation

Don't wait until you've invested a lot of money to test feasibility.

You can:

• Ask for opinions from friends, experienced people

• Ask them to role-play as test customers

• Get feedback on price, process, experience

Initial feedback helps you make early adjustments and reduce financial risks.

Step 4: How to create a marketing plan

1. Determine how you will reach customers

First, answer: Where are your customers?

• Do they search on Google?

• Do they scroll through Facebook, TikTok?

• Do they buy through e-commerce platforms?

• Or do they connect through relationships, referrals?

Depending on the model, you can choose:

• Facebook, TikTok Ads

• SEO website for keywords like "how much capital is needed to start a small business", "cheap ... service"

• Livestream selling

• Google Ads

• Flyers, billboards (for local businesses)

• Participate in groups, networking events

In low-capital small business startups, focus on 1-2 main channels instead of spreading yourself thin.

2. Clarify your marketing message

Many small businesses fail because of generic advertising. You need to answer:

• Why should customers choose you?

• What problem do you solve better than others?

The message should be:

• Concise

• Benefit-focused

• Address the right need

For example:

• 20% lower price

• Delivery in 2 hours

• 1-to-1 warranty

• Free consultation

In marketing strategies for small businesses, customers don't care how good you are; they care what you can do for them.

3. Define your USP – core competitive advantage

USP (Unique Selling Point) is the differentiating factor that makes you stand out in the market.

You can compete by:

• Lower prices

• Higher quality

• Faster service

• Better experience

• More specialized in a niche segment

In reality, it's very difficult for a small business model to compete comprehensively. Instead, choose a clear advantage and focus on it as much as possible.

4. Set a specific marketing budget

Don't just say "we'll run ads." Calculate:

• How much is the monthly budget?

• How often will effectiveness be measured?

• How many orders are needed to break even?

An effective marketing plan in the small business startup process must have measurable goals, for example:

• 100 potential customers per month

• 30 orders

• Conversion rate of 5–10%

5. Continuous testing and optimization

Marketing is not a one-time task.

You need to:

• Track metrics

• Compare channel effectiveness

• Eliminate ineffective channels

• Increase budget for profitable channels

Marketing directly affects cash flow. When you build a clear marketing plan, have a strong USP, and choose the right channels to reach customers, your chances of success will be much higher than just "opening your doors and waiting for customers to come."

Step 5: How to build a pricing strategy

1. Research competitor prices before deciding

Don't price based on intuition.

You should:

• List 5–10 direct competitors

• Record their current selling prices

• Compare quality, service, brand image

Ask yourself:

• Are you in the low, mid, or high price segment?

• Is the market competing on price?

In small business startups, if you don't understand the general price level, it's easy to fall into two situations: pricing too high and struggling to sell, or pricing too low and making no profit.

2. Calculate all costs before thinking about profit

A pricing strategy for small businesses needs to start with actual costs:

• Product cost of goods sold

• Operating costs

• Marketing

• Personnel

• Taxes, platform fees (if selling online)

After calculating total costs, you can determine:

• Break-even point

• Minimum profit margin

Don't chase low prices if you're not sure you can sustain it in the long run.

3. Increase value instead of just cutting prices

If your price is higher than competitors, clearly explain what extra value customers receive:

You can:

• Upgrade packaging

• Extend warranty

• Improve customer service

• Faster delivery

• Personalize the experience

In a small business model, competing solely on low prices is often unsustainable. Competing on value helps you maintain better profit margins.

4. Understand that competition is not just about the product

Today, consumers are more concerned about:

• Product origin

• Working conditions

• Environmental impact

• Social responsibility

If you have:

• Credible certifications

• Transparency commitments

• Environmentally friendly policies

These can be advantages that allow you to price higher and still be accepted.

In the small business startup process, "brand value" is becoming increasingly important, especially for younger customer segments.

5. Choose the right pricing model

Depending on the product, you can apply:

• Cost-plus pricing

• Value-based pricing

• Bundle pricing

• Market penetration pricing (initially low price)

It's important to have a clear strategy and not change prices constantly without direction.

Step 6: Create a financial plan when starting a business

1. Convert plans into concrete numbers

Finance is the translation of:

• Marketing plan → projected revenue

• Operational plan → projected expenses

You need to determine:

• What is the projected monthly revenue?

• What are the total operating costs?

• What is the remaining net profit?

In the first year, you should:

• Monitor finances monthly

• Update and adjust regularly

In the second year, you can monitor quarterly, and annually once stable.

2. Calculate all initial startup costs

Before officially launching, clearly list small business startup costs:

• Lease/Rent

• Equipment

• Raw materials

• Initial marketing

• Business registration

• Software, management tools

Many people only calculate inventory costs and forget about operating costs for the first 3–6 months.

A safe principle:
Prepare enough money to sustain operations for at least 3–6 months, even if revenue is lower than expected.

Lack of reserve capital is a common reason why small business models fail early.

3. Identify appropriate funding sources

You can raise capital from:

• Personal savings

• Family, friends

• Bank loans

• Angel investors

• Small business support funds

However, be realistic. Don't expect to reach 100% of projected revenue in the first month. In the small business startup process, the initial phase often requires time to validate the market.

4. Build a pricing and profit structure

To ensure sustainability, you need to calculate:

Selling Price – Total Costs = Net Profit

Total costs include:

• Variable costs (raw materials, shipping)

• Fixed costs (rent, utilities, personnel)

Try calculating:

• How much profit per product?

• How many products to sell to break even?

• How many orders per month to achieve profit targets?

This helps you avoid the situation of "high revenue but no cash."

5. Forecast cash flow instead of just looking at profit

Many people confuse profit and cash flow.

For example:

• You sell goods, but customers pay late

• You have to purchase inventory before selling

• You pay rent at the beginning of the month

If you don't manage cash flow well, you can run out of cash even if your books show a profit.

Step 7: How to write an executive summary

1. Overview of the business model

Start with a brief introduction:

• What business does the company do?

• Which customer segment are you serving?

• What market problem is being faced?

• What is your solution?

This section should be concise, 3-5 sentences, helping the reader understand the core of the business model immediately.

2. How the business generates revenue

Clearly explain how money is made:

• Direct product sales?

• Service fees?

• Subscription or package fees?

• Combination of revenue streams?

In small business startups, investors or partners are particularly interested in the sustainability of the cash flow.

3. Capital needs and use of funds

If you need capital, clearly state:

• How much money is needed?

• What will it be used for?

• How long until break-even point is reached?

Transparency in this section helps build trust and shows you understand the business's finances.

4. Current status of the business

Provide a realistic update:

• Is it legally registered?

• Is there a prototype product?

• Are there customers or trial revenue?

• Who is on the team?

If you have initial data such as customer count, growth rate, positive feedback, include it. This makes a small business plan more convincing.

5. Outstanding competitive advantages

Conclude by clarifying:

• What is your biggest differentiator?

• Why does this model have growth potential?

• Is there still room for market growth?

In the small business startup process, a good executive summary is no more than 1-2 pages but must convey vision, feasibility, and profit potential.

Step 8: Develop product or service

1. Start building the first version

Depending on the model, your implementation will differ:

• If it's a physical product: source materials, trial production, quality control

• If it's software: programming, bug testing, completing a trial version

• If it's a service: build service processes, consultation scripts, quality standards

In small business startups with limited capital, it's advisable to start with a minimum viable product (MVP) rather than investing too heavily from the outset.

2. Continuous testing and adjustment

When put to the test, you're almost certain to discover issues.

For example:

• Product needs changes in color, size, or material

• Service processes need adjustment for faster delivery

• Selling price is not suitable for the market

This is an optimization phase, not a failure. In the small business startup process, early adjustments save a lot of costs compared to correcting mistakes after expansion.

3. Compare with competitors to create differentiation

When the product is nearly complete, ask yourself:

• Do customers have a clear reason to choose you?

• Are you too similar to many competitors?

• Do you truly have unique selling points?

If the product is not sufficiently differentiated, now is the time to adjust:

• Improve quality

• Enhance customer experience

• Add supplementary value

In a small business model, differentiation helps you avoid competing solely on price.

4. Gather real-world feedback before scaling up

Before launching widely, it is advisable to:

• Pilot sell to a small customer group

• Request detailed feedback

• Note both praise and suggestions

Real-world feedback is more important than internal assumptions. This step helps you verify if the product fits the market.

5. Prepare for the launch phase

Once the product or service has been refined:

• Ensure smooth operational processes

• Maintain stable quality control

• Prepare a synchronized marketing plan

The product development phase is the foundation that determines long-term viability. Thorough work in this step helps you confidently enter the market instead of constantly selling and fixing bugs.

Experience 3: Financial management for small businesses

Step 1: How to raise startup capital

1. Use personal savings

The first source of capital to consider is yourself.

• Do you have any savings that can be partially used?

• After investing, will you have enough living expenses for 3-6 months?

• Do you have a separate emergency fund?

Safety principles:

• Do not invest all savings

• Do not use money reserved for emergencies

• Do not use money that has large spending plans for the next 1-2 years

In a small business startup with limited capital, maintaining a "financial safety net" helps avoid excessive pressure when revenue is not yet stable.

2. Accumulate before starting

If you don't have enough capital, you can:

• Allocate a portion of monthly income to savings

• Plan to save over 6-12 months

• Start a small-scale model alongside your current job

This approach helps reduce risk and avoid borrowing immediately.

3. Bank loans or credit lines

You can inquire about:

• Unsecured loans for small businesses

• Secured loans (if collateral is available)

• Credit lines for business households

When dealing with banks:

• Prepare a clear small business plan

• Compare interest rates across multiple banks

• Carefully calculate monthly repayment capacity

Don't borrow just because you "can get a loan." Borrow when your projected cash flow is sufficient to cover repayments.

4. Fundraise from family or partners

Some people choose to:

• Pool capital with friends

• Receive investment from relatives

• Find angel investors

However, in the small business startup process, it's essential to be clear from the start about:

• Capital contribution ratio

• Decision-making power

• Profit-sharing method

• Conditions for capital withdrawal

Transparency helps avoid conflicts later on.

5. Account for capital during the pre-profit stage

When estimating finances, be realistic:

• You may not achieve 100% of projected revenue in the first few months

• Costs may be higher than initial calculations

• The market needs time to respond

Therefore, in addition to startup capital, you should prepare an operating reserve for at least a few months.

Step 2: How to control operating costs

1. Monitor costs closely against the initial plan

As soon as operations begin, you need to:

• Compare actual costs with estimates in your small business plan

• Update figures monthly

• Detect over-budget expenses early

Regular monitoring helps you adjust in time instead of letting losses accumulate.

2. Review small but recurring expenses

Small expenses are often overlooked but can add up significantly:

• Electricity, water bills

• Internet, phone packages

• Software fees

• Packaging, office supplies

• Sales platform fees

Ask yourself:

• Am I using a service package higher than actual needs?

• Can I renegotiate prices with the supplier?

• Are there more economical alternatives?

In a small business startup with limited capital, every small saving makes a big difference in profitability.

3. Lease instead of buying when not essential

In the early stages, cash flow is more important than asset ownership.

You can:

• Lease equipment instead of buying new

• Rent short-term storage instead of signing long-term contracts

• Use monthly-paid software instead of multi-year lump-sum fees

A flexible approach helps you reduce risk if you need to change your model.

4. Avoid long-term commitments before stability

Many small businesses make the mistake of:

• Signing long-term leases

• Subscribing to multi-year service packages

• Committing to high fixed costs from the start

In the small business startup process, prioritize short-term contracts and variable cost models to maintain flexibility.

5. Develop a strategic saving mindset

Saving doesn't mean cutting everything. Differentiate between:

• Expenditures that generate revenue → should be invested in

• Expenditures that don't create clear value → should be optimized

For example:

• Effective marketing might require an increased budget

• Overly elaborate office decoration might not be necessary yet

Good operating cost management helps you extend your runway, increase the likelihood of reaching the break-even point, and build a stable foundation for growth.

Step 3: Prepare sufficient reserve capital

1. Don't just calculate startup costs

Many people only consider:

• Equipment purchase costs

• Inventory purchase

• First month's rent

But forget that:

• The second month still requires rent payment

• Employees still need salaries

• Electricity, water, and marketing still incur costs

• Revenue might not be stable yet

In small business startups, initial cash flow is often slower than expected.

2. Prepare 6-12 months of operating capital

Practical principle:

• Have enough funds to maintain for at least 6 months

• Ideally 9-12 months if the industry has long sales cycles

This reserve helps you:

• Avoid panic when revenue is low

• Avoid high-interest urgent loans

• Avoid closing down too early just due to lack of cash

Many promising models fail because they "run out of money before they can succeed."

3. Always budget for unexpected expenses

Business reality often presents:

• Equipment repairs

• Raw material price increases

• Higher-than-expected marketing costs

• Slow-moving inventory

In a small business financial plan, it's advisable to add 10-20% for contingency costs instead of calculating precisely.

4. Slow but safe growth

If capital is limited, instead of launching big right away, you can:

• Start small-scale

• Validate the market first

• Reinvest profits

In the small business startup process, sustainability is more important than speed. Slow growth with enough funds to sustain operations will help you survive long enough to optimize and expand.

Step 4: Smart cost-saving when starting a business

1. Keep office costs to a minimum

When just starting out, you don't need:

• Luxurious offices

• High-end furniture

• Elaborate decorations

• Expensive equipment beyond needs

If your model allows, you can:

• Work from home

• Rent a small space

• Use flexible coworking spaces

• Meet clients at a coffee shop or shared reception area

In small business startups with limited capital, cash flow is more important than a flashy image.

2. Focus on revenue-generating factors

Before spending money, ask yourself:

• Will this expenditure help me sell more?

• Will it improve product quality?

• Will it enhance customer experience?

If the answer is unclear, reconsider.

In a small business model, prioritize:

• Effective marketing

• Product improvement

• Sales process optimization

Instead of:

• Buying high-end furniture

• Equipping unnecessary technology

• Investing in an image beyond the current stage

3. Rent and use flexible solutions instead of outright purchase

To reduce financial pressure, you can:

• Lease equipment instead of buying new

• Use monthly-paid software

• Choose flexible service packages instead of long-term contracts

This strategy helps you easily adjust when the market changes in the small business startup process.

4. Avoid "professional delusion"

Many people think they need a fancy office, elaborate logo, and complex website to build credibility. In reality, customers care more about:

• Is the product good?

• Is the service trustworthy?

• Is the price reasonable?

Many successful businesses started very small, even from a "garage" or home office. What truly matters is not expensive equipment, but the ability to create real value.

Step 5: How to choose payment methods

1. Determine your business type first

Before choosing a solution, clarify:

• Do you sell offline in-store?

• Sell online via social media?

• Or sell via a website, e-commerce platform?

Each model will be compatible with different payment methods.

2. In-store card payments (mobile POS)

If you conduct business directly, you might consider a card payment device.

For example, Square offers card readers that connect to a phone or tablet, turning the device into a cash register.

Advantages:

• Simple procedures

• Transparent fees

• Suitable for small businesses

Additionally, similar solutions from PayPal, Intuit, or Amazon also provide flexible payment services.

However, you should:

• Compare transaction fees

• Check fund transfer times

• Clearly review contract terms

3. Traditional merchant accounts

If you want to be more professional or operate on a larger scale, you can open a merchant account with a bank.

This is a contract that allows you to:

• Accept credit/debit card payments

• Receive funds directly into your business account

Suitable when:

• Revenue is stable

• High transaction volume

• You want to integrate a fixed POS system

In a small business model, consider maintenance costs and monthly fees before signing up.

4. Online payments for online businesses

If you sell online, payment gateways like PayPal help with:

• Fast payments

• International payments

• Flexible money transfers

In Vietnam, you should also consider:

• Bank transfer

• E-wallet

• Cash on Delivery (COD)

Vietnamese customers still prefer COD, especially in small retail business startups.

5. Prioritize customer convenience

Important principle:

• Easier payment → higher conversion rate

• More options → higher purchase probability

In the small business startup process, the payment system is not just a tool for receiving money, but also a factor in building trust and increasing conversions.

Experience 4: Legal procedures when starting a small business

Step 1: When to hire a startup lawyer

1. Understand that business always involves legal procedures

When starting, you may have to handle:

• Business registration

• Licenses for conditional business lines

• Premises rental contracts

• Contracts with partners

• Taxes and financial obligations

• Labor regulations

Legal errors often don't appear immediately, but can cause major consequences later.

2. When to seek a lawyer or legal advisor

You should consider hiring a lawyer when:

• Establishing a company (LLC, joint-stock, etc.)

• Drafting capital contribution agreements

• Signing large contracts with partners

• Facing disputes or legal risks

• Operating in a highly regulated industry

Having someone knowledgeable in law by your side helps you:

• Reduce administrative penalties

• Avoid unfavorable clauses in contracts

• Develop long-term legal plans

In the small business startup process, prevention is always cheaper than dealing with consequences.

3. Choose the right person for your business model

Not all lawyers are suitable for small businesses.

When choosing, consider:

• Do they have experience with small businesses or startups?

• Do they understand your industry?

• Do they explain things clearly and understandably?

You should choose someone who:

• Communicates clearly

• Understands business realities

• Thinks about risk prevention rather than just problem-solving

An inexperienced legal advisor can lead you to sign incorrect clauses, violate regulations, or incur unnecessary penalties.

4. View this as an investment, not an expense

In a small business model, many people hesitate to hire a lawyer to save money. However:

• An incorrect contract can cause much greater damage

• A tax error can lead to penalties and back taxes

• An internal dispute can cause a business to collapse

Initial consultation fees are usually much lower than the cost of rectifying mistakes.

Step 2: Why you should hire an accountant when starting a business

1. Business taxes are more complex than you think

When doing business, you may have to handle:

• License tax

• Value Added Tax (VAT)

• Corporate Income Tax

• Personal Income Tax (if employees exist)

• Periodic financial reports

Even a small error in declaration can lead to:

• Administrative penalties

• Back taxes

• Damage to business reputation

In small business startups, tax risk is one of the most common risks.

2. Accounting helps you see the actual financial situation clearly

Beyond just bookkeeping, a good accountant also helps you:

• Accurately track profit and loss

• Control operating costs

• Analyze cash flow

• Forecast tax obligations

This is especially important in a small business model, where cash flow is often limited and easily lost control.

3. You can manage your own income and expenses, but still need tax advice

If the scale is small, you can:

• Keep track of revenue and expenses yourself

• Use simple accounting software

But at a minimum, you should still have:

• An accountant or tax consultant for periodic checks

• Someone to update changes in tax policies

• Someone to assist when tax authorities request explanations

In the small business startup process, preventing financial errors is much cheaper than dealing with the consequences.

4. Choose someone reliable and transparent

When looking for an accountant, prioritize:

• Experience with small businesses

• Clear and easy-to-understand communication

• Transparency regarding service fees

Finances are the most sensitive part of a business. You need someone with expertise and professional ethics.

Step 3: How to choose a business entity type

1. Sole proprietorship

Suitable when:

• You operate alone

• Small scale

• No need for complex capital raising

Advantages:

• Simple procedures

• Low setup costs

• Flexible management

Note:

• The business owner is liable with all personal assets

• Difficult to scale up or raise capital

In small business startups with limited capital, this is a common choice in the initial stage.

2. General partnership

Suitable when:

• Two or more people co-manage

• Share profits and responsibilities

Characteristics:

• Partners are jointly liable for financial obligations

• All members have the right to participate in management

Risks:

• One person's mistake can affect everyone

In small business models with co-founders, it's essential to clearly define rights and obligations from the start.

3. Limited partnership

This model includes:

• General partners (manage and bear primary responsibility)

• Limited partners (liable only to the extent of their capital contribution)

Suitable when:

• There is a primary operating manager

• There are investors who only contribute capital

This is a flexible structure if you want to raise capital while maintaining control.

4. Limited Liability Partnership (LLP)

Characteristics:

• Partners are not liable for each other's individual errors

• Reduces legal risks among members

Suitable for:

• Professional groups such as consulting, law, accounting

In the small business startup process, choosing the right entity type helps you limit long-term legal risks.

5. Consider carefully before deciding

Before registering, you should clarify:

• Do you plan to raise capital in the future?

• What is your personal asset risk tolerance?

• What is the projected revenue?

• How many people will be involved in management?

Consulting with a lawyer and accountant will help you choose the correct model from the start, avoiding complex conversions later on.

Experience 5: Marketing strategies for small shops

Step 1: Build a website for a small business

1. If selling online, a website is mandatory

When doing business online, you should:

• Build an e-commerce website (with shopping cart, payment)

• Optimize for SEO with keywords like "best price [service]", "reliable [product]"

• Connect with social media and e-commerce platforms

A website helps you:

• Control your brand

• Not be entirely dependent on intermediary platforms

• Increase customer trust

In small online business startups, a website is a long-term asset, not just a temporary tool.

2. If doing local business, prioritize local outreach

If your model focuses on direct experiences (e.g., repairs, beauty services, in-home services), you can:

• Focus on promoting to the surrounding area

• Optimize for Google Maps

• Distribute flyers, connect with the community

A website is still recommended, but it doesn't need to be overly complex. The important thing is that customers can:

• Find you on Google

• See services and prices

• Contact you quickly

In a small local business model, reputation and word-of-mouth are sometimes more important than elaborate design.

3. Design simply, clearly, and understandably

An effective website doesn't need to be overly complex.

You should ensure:

• Simple interface

• Easy-to-read content

• Fast loading speed

• Good display on mobile phones

On the homepage, clearly answer these 3 questions:

• What do you do?

• How do you help customers?

• What are the prices or how to contact?

In marketing strategies for small businesses, clarity increases conversion rates more than complex design.

4. Emphasize competitive advantages

A website is not just for introduction, but for persuasion.

Highlight:

• Unique Selling Proposition (USP)

• Quality commitment

• Customer feedback

• Real-life images

Customers often decide in the first few seconds. If they don't understand what value you bring, they will leave.

5. View your website as a long-term platform

In the small business startup process, a website is an asset that can grow over time:

• SEO optimization to increase free traffic

• Customer data collection

• Building a sustainable brand

Even if you start small, a clear, professional website focused on solving customer problems will help your business increase credibility and expand business opportunities in the future.

Step 2: Should you hire a professional website designer?

1. Professional design helps increase credibility

Many small business owners want to build their own website to save costs. This may be suitable during the testing phase, but if you want to build a long-term brand, professional design offers clear benefits:

• Clear, easy-to-use interface

• Conversion-optimized layout

• Fast loading speed

• Good display on mobile phones

In small online business startups, trust determines purchasing behavior. The more polished your website is, the higher the chance customers will stay and make a purchase.

2. Focus on user experience

An effective website needs:

• Easy to find information

• Clear contact buttons

• Simple ordering process

• No display errors

Customers don't care what platform you use. They only care if it's easy to buy.

In marketing strategies for small businesses, a good experience helps increase conversion rates and reduce advertising costs.

3. Invest in security if you have online payments

If your website has online payments, this is a must-have:

• SSL certificate (https)

• Reputable payment gateway

• Customer information security

Ensure:

• Customer data is encrypted

• Payment processing entity is transparent

• Clear privacy policy

A security incident can quickly erode trust, especially for a small business model that is building its brand.

4. Consider costs as an investment

Professional website design can have initial costs, but:

• Helps increase credibility

• Increases sales potential

• Reduces future error correction costs

Distinguish between "cost" and "investment." If your website is your primary sales channel, then good design and security are not luxuries, but essential foundations.

Step 3: Develop self-promotion skills

1. Believe in the value you bring

Before convincing others, you must truly believe that:

• Your product solves a problem

• Your service provides clear benefits

• Your business deserves to exist in the market

This belief is the foundation of all marketing activities in a small business startup.

2. Build an "elevator pitch"

You need a concise introduction that clearly answers:

• What do you do?

• Who do you help?

• What makes you different?

For example, a simple structure:

"I help [target customers] solve [specific problem] by [solution], helping them achieve [result]."

Write multiple versions, editing them until they are:

• Concise

• Easy to understand

• Benefit-focused

In marketing strategies for small businesses, a clear message increases opportunities for collaboration and sales.

3. Practice until it feels natural

Not everyone enjoys selling. But when doing business, presentation skills are essential.

You can:

• Practice in front of a mirror

• Record yourself to listen and refine

• Practice with friends

When you speak confidently and articulately, customers will perceive professionalism.

4. Actively seek opportunities instead of waiting

In the small business startup process, opportunities often come to those who are proactive:

• Attend networking events

• Share knowledge on social media

• Meet potential partners

• Present ideas to investors

Every appearance is an opportunity to promote your brand.

5. Dare to believe and dare to try

Bill Gates once shared that to win big, sometimes you have to take big risks. In business, that's not just about money, but also the courage to believe in yourself.

Step 4: Build a strong social media presence

1. Start early to build anticipation

Don't wait until opening day to post.

You can share:

• The journey of preparing to open your business

• Behind-the-scenes of production

• The product development process

• Customer feedback surveys

This helps:

• Create a sense of companionship

• Attract loyal followers

• Increase organic engagement

In small online business startups, building a community early helps reduce future advertising costs.

2. Choose platforms appropriate for your target customers

Depending on your audience, you can focus on:

• Facebook – Suitable for various age groups

• Twitter – Suitable for quick updates, news

• Google+ – (formerly used for SEO and community building)

Currently, in Vietnam, you should also consider:

• TikTok

• Instagram

• YouTube

In a marketing strategy for small businesses, you don't need to be everywhere. Focus on where your customers are most active.

3. Separate personal and business accounts

Important principles:

• Create a separate account or fan page for the business

• Professional, consistent content

• Maintain a clear brand image

The message on personal and business accounts should be different. This helps build trust and avoids brand confusion.

4. Create valuable content, not just sales pitches

Content should include:

• Share useful knowledge

• Answer common questions

• Customer stories

• Actual feedback

If you only post sales pitches continuously, followers will quickly leave.

In a small business model, quality content helps you build trust without a large budget.

5. Integrate press releases when appropriate

Besides social media, you can use press releases to:

• Launch new products

• Announce events

• Share brand stories

Press releases can help you appear on various news sites, increasing recognition and credibility.

Step 5: Implement marketing and distribution plan

1. Start marketing before the official launch

Once you have an estimated launch date:

• Announce the launch date

• Run a "coming soon" campaign

• Collect interest registrations

• Create a list of potential customers

In small business startups, early marketing helps you get orders as soon as you launch instead of waiting.

2. If advertising in newspapers or magazines

Traditional advertising requires preparation:

• Article content (copy)

• Product images

• Clear contact information

Typically, print publications require content 1–2 months in advance. Therefore, in your small business marketing plan, you must work backward to avoid delays.

3. If selling through stores or agents

You need to:

• Negotiate display positions in advance

• Prepare discount policies

• Negotiate the first order (pre-order)

• Agree on payment terms

In a small retail business model, shelf position and display quantity directly impact sales.

4. If selling online

Before running ads or making a widespread announcement, ensure that:

• The website is stable

• The payment system runs smoothly

• Order processing procedures are clear

• SEO-optimized product descriptions are available

In online small business startups, the shopping experience must be smooth from day one.

5. If providing services

You should promote where your target customers are present:

• Trade magazines

• Professional groups

• Local newspapers

• Online forums

Additionally, you should:

• Prepare a company profile

• Have a clear price list

• Collect reviews from initial customers

Implementing marketing and distribution at the right time helps you maximize the preparation efforts made earlier.

Experience 6: How to launch and operate a small business

Step 1: Prepare business premises

1. Determine if a separate premise is truly necessary

Before renting, ask yourself:

• Can it be operated from home?

• Can a small warehouse be used instead of a large office?

• Can I work remotely and meet clients externally?

In small business startups with low capital, reducing rental costs helps prolong survival.

2. Rent flexibly if only meeting space is needed

If you primarily work from home but occasionally need to meet clients, you can:

• Rent meeting rooms by the hour

• Use coworking spaces

• Rent flexible workspaces

This solution helps you:

• Maintain a professional image

• Avoid long-term contracts

• Optimize operating costs

In a small business model, flexibility is more important than large space.

3. Rent an office or warehouse when expansion is truly needed

As inventory increases or the team grows, you may need:

• A dedicated storage warehouse

• A permanent office

• A production workshop

At this point, carefully calculate:

• Monthly rent

• Utility costs (electricity, water)

• Maintenance costs

• Contract duration

In a small business plan, premises are a significant fixed cost and must be carefully considered.

4. Check legal regulations and zoning

Before operating, ensure that:

• The area permits your type of business

• You do not violate regulations on noise, safety, and environment

• You have appropriate permits if operating from home

Some industries are not allowed to operate in residential areas. In the small business startup process, compliance with regulations helps you avoid penalties or forced cessation of operations.

5. Prioritize location suitable for customers

If operating a physical business, consider:

• Foot traffic

• Parking availability

• Level of competition nearby

If operating online, location may not be as important as cost.

Step 2: Launch products or services

1. Ensure everything is ready before announcement

Before launching, check:

• Products are complete and quality controlled

• Services have clear procedures

• Website is stable

• Payments run smoothly

• Staff understand their roles

In a small business startup, a successful launch depends on thorough preparation behind the scenes.

2. Organize a launch event appropriate to the scale

You can:

• Organize a small grand opening

• Livestream the launch on social media

• Send emails or notifications to potential customers

• Issue a press release

An event doesn't need to be expensive. The key is a clear message and attracting attention.

3. Leverage social media for spread

On the launch day, make sure to:

• Post simultaneously on all channels

• Run ads if budget allows

• Encourage sharing from friends and partners

• Offer special deals to early customers

In a small business marketing strategy, initial word-of-mouth helps increase awareness quickly.

4. Create initial purchasing incentives

You can apply:

• Grand opening offers

• Limited-time gifts

• Discounts within the first 3–7 days

• Special combo packages

The goal is to encourage quick action rather than just browsing.

In a small business model, early revenue provides cash flow to continue marketing.

5. Use professional management tools

As soon as you start getting customers, you should:

• Use customer relationship management (CRM) software

• Track orders and feedback

• Manage appointments and payments

Investing in the right tools helps you:

• Work more efficiently

• Avoid errors

• Enhance customer experience

Professionalizing from the start helps you build a reputable image and expand easily.

Survival principles when starting a business

1. Always create value before selling

Even if customers haven't bought yet, you should:

• Share useful knowledge

• Provide free consultation within reasonable limits

• Help them understand the problems they are facing

When they truly need a product or service, you will be the first person they think of. In marketing strategy for small businesses, creating value upfront reduces the cost of persuasion later.

2. Leverage the advantages of online business

Compared to traditional models, online business:

• Has lower startup costs

• Offers location flexibility

• Makes it easy to test new products

In small business startups with limited capital, this is a suitable path to start and quickly validate the market.

3. Continuously learn and connect

Don't try to do everything yourself.

You should:

• Join entrepreneur communities

• Find experienced mentors

• Discuss on professional forums

• Stay updated on market trends

Learning from those who came before you helps you avoid repeating costly mistakes in the small business startup process.

4. Start small and expand gradually

You don't need to launch 10 products right from the start.

You should:

• Start with 1–2 key products

• Test market feedback

• Optimize before expanding

This approach helps you:

• Reduce inventory risk

• Focus resources

• Adjust quickly if needed

5. Be flexible in pricing strategy

Don't stick to a single price.

You can try:

• Low prices to attract initially

• High prices for the premium segment

• Combo packages to increase order value

As long as you know your break-even point, price experimentation is essential in a small business model.

6. Maintain resilience in the face of difficulties

There will be periods when:

• Revenue declines

• Costs increase

• Plans don't meet expectations

The important thing is to:

• Not panic

• Analyze the causes

• Adjust the strategy

In small business startup steps, perseverance is as important as skills.

7. Listen to feedback constructively

After launching:

• Accept suggestions

• Analyze complaints

• Improve products/services

Feedback, whether positive or negative, is valuable data to raise business standards.

8. Thoroughly research the market and competitors

You need to understand:

• What customers truly need

• What competitors are doing well

• Where market gaps exist

Competitive advantage comes from market understanding, not intuition.

9. Beware of "easy profit" promises

Be cautious of:

• Models that require upfront payment without clear real value

• Promises of quick income with no effort

• Pyramid schemes or unreasonably high participation fees

Sustainable business is based on real value and fair exchange, not "free but conditional."

References

1. Fennell, M. (n.d.). Life & Business Coach. Expert interview.
2. Ronis, H. (n.d.). Business Advisor. Expert interview.
3. Washington State Department of Revenue. (n.d.). Ownership structures. Retrieved from http://bls.dor.wa.gov/ownershipstructures.aspx
4. U.S. Small Business Administration. (n.d.). Starting and managing a business. Retrieved from http://www.sba.gov/category/navigation-structure/starting-managing-business
5. Wikipedia contributors. (n.d.). Gains from trade. In Wikipedia, The Free Encyclopedia. Retrieved from http://en.wikipedia.org/wiki/Gains_from_trade
6. Wikipedia contributors. (n.d.). Pyramid scheme. In Wikipedia, The Free Encyclopedia. Retrieved from http://en.wikipedia.org/wiki/Pyramid_scheme
7. Wikipedia contributors. (n.d.). Advance-fee fraud. In Wikipedia, The Free Encyclopedia. Retrieved from http://en.wikipedia.org/wiki/Advance-fee_fraud

Translation: Sidney Bailey Hoang.