1. Write a business plan.
If you're going to raise money from other people for your venture, you need a solid business plan. Potential investors want to read your idea, understand your thinking and learn your strategy, and your business plan will convey all that. It should be written in industry jargon and include your business model (basically how people will give you money), how big your market is, who has a burning need for what you're selling and how you can keep other people from copying you. If you intend to self-fund your project, it's still useful to write a business plan to help you clarify your vision and get it down in black and white-after all, you're much more likely to make it happen when the whole plan is sitting on the desk in front of you. While you're devising your plan, you should also figure out what type of legal entity (corporation, LLC, etc.) you want to set up, then go ahead and form it.
2. Raise your capital.
Most people begin with their own money, then turn to friends and family for the next round of funding. When you do receive money from friends and family, it's always a good idea to draw up a contract so they have a clear understanding of what exactly they're receiving for their investment (usually common stock). After that, you'll probably want to look to angel investors, who are typically wealthy individuals who've often made their money as entrepreneurs and don't necessarily want to do that again themselves, but enjoy being in the game and investing at an early stage in someone else who's trying to make it big.
If you have a business idea with really big market potential and you need a lot of money to launch it (like half a million or more), your next step in soliciting funds is to target venture capitalists. These professional investors have major bucks to spend, but they're going to look long and hard at you and do amazing due diligence on your idea. The venture capitalists usually specialize in certain industries and invest only at specific stages of business development-use the Internet to research who does what.
3. Name your business.
Choosing a business name is no trivial issue. It's what you're presenting yourself to the world as, so you need it to be memorable. You'll want your name to be unique to your business, so before you decide on something, make sure it's available and not already being used by someone else. You may be interested in getting a trademark on the name-and certain names are easier to trademark than others. An attorney who really knows the system could figure out the best way for you to go about trademarking. If the name is really integral to your business, you may need to find someone who specializes in intellectual property and trademarks.
4. Figure out your pricing.
Setting your price list is absolutely important at this stage, and the more research you do beforehand, the better. Talking to people in your target market to get a sense for what they're willing to pay (including what's too much and what's too little) is very helpful. Be attuned to what the market's telling you. Even a minimal amount of market research would be valuable so you don't overprice or underprice. You have to sell your product or service at a price that can eventually be profitable-meaning the price has to cover the cost of making/providing the product/service, plus all your various overhead costs.
5. Create a professional image.
You'll definitely want to get business cards and stationery printed up. It's another way to present yourself, and if you don't have a business card to hand out, that could raise questions about how legitimate your endeavor is. With sharp-looking cards and stationery, you'll give a very positive impression. (And when you're creating your materials, you're generally better off using a street address instead of a P.O. box-even if that means using your home address and sticking an unnecessary-but-official-looking Suite 101 after it.)
Another way to increase your credibility (especially to your customers) is to build a Web site for your business. Offering a site also makes it a lot easier for people to contact you at no cost to them. Luckily, it's simple to hire people to create Web sites and business materials. There are a number of sites on the Internet where you can find graphic designers and site builders who will bid on your projects (and can often work cheaply).
6. Learn how to manage your money.
It's critically important to understand how to successfully manage your funds-know both where the money's coming from and where you're spending it. It's good to use a computer program like Quicken, which allows you to keep your own books. You can even have a CPA come in once a month to do your accounting. An ideal scenario would be to learn Quicken and use it regularly, then bring in an accountant only when you need them. That way you can monitor your finances without being completely dependent on an outsider.
7. Find a mentor.
When you're launching your own business, it's really helpful to have a mentor-whether it's a friend, family member or just someone who's been through a similar experience. Sometimes starting a venture can be a lonely pastime, and it's nice to have somebody to talk to who can give you direction or just reassure you that what you're going through is normal. You could also join (or even form) a local group of people who are all starting businesses from home. It's really nice to be able to get together with that group once a week to share tips of the trade or commiserate together. (Of course, it's best if the other people are starting non-competing types of businesses.)
Once you get through these steps, you're in business-both literally and figuratively. There's a strong chance that you'll wind up being the president, shipping clerk, head of marketing, and sales rep all at once, so practice your juggling skills. And most of all, good luck! | 
