Do the Homework

• 1). Choose a business idea. Capitalize on personal skills, hobbies, ideas and passions when choosing the product or service to sell. Select a business idea that is unique, fulfills a need or fixes a problem for consumers and is simple to produce or provide. Consider how the idea will be delivered to the customer, the cost and time required to produce it and how much profit it can generate.
  
  
• 2). Conduct research to find out about competitors. Find products that are comparable, order the products and become a customer to discover how the competition runs its business. Take note of the quality of the product or service, the purchasing process and the condition of the product upon delivery. Knowing how others run their businesses can help form the way a micro business is run and even help that micro business gain an edge over the competition.
  
  
• 3). Develop the product or service. Figure out how it will be made and what it will cost to produce. Consider contracting with other micro businesses to make the product. For instance, a micro business that makes gift baskets may purchase the handmade baskets and locally produced and packaged foods from local artisans rather than taking on the time and cost to make them.
  
  
• 4). Create a business and marketing plan. No matter how small the business is, it is still important to decide how the business will operate and generate revenue, who the customer will be and how to engage and interest the customer in the company's products and services. The U.S. Small Business Administration provides a guide for writing a business plan on its website (see Resources). Look for personal assistance by visiting a local SBA office or by contacting the state's economic development center and inquiring about workshops and events for business start-ups.
  
  

Become a Legal Enterprise

• 1). Hire a lawyer to set up complicated business structures such as limited liability companies and corporations. These business structures are tied to state and federal regulations that can often be confusing for the layperson to digest. These structures are important to consider because they can provide asset protection for the micro business owner.
  
  
• 2). Obtain a business license. Even a one-person micro company needs to abide by state and federal business laws and regulations. Contact city and state business licensing and regulations agencies to learn what is required. Each state will have its own laws and procedures, but most states require the purchase of a business license, a request for a sales tax number and the completion of quarterly tax forms.
  
  
• 3). Set up business banking. Use the business license to open a business bank account. Look for a bank that offers business accounts for small companies. Small-business banking accounts usually require a smaller opening balance and charge a reduced monthly administration fee.
  
  
• 4). Set up the bookkeeping process. The easiest way to track business records is through the use of accounting software such as QuickBooks or Peachtree. Software companies usually provide tutorials for setting up and using their programs. The cost of paying a bookkeeper or an accountant to help set up and streamline the record-keeping process can be written off when paying income taxes.
  
  
• 5). Put the marketing plan into action. Marketing plans help drive customers to your door. Thanks to the Internet, micro businesses have a number of marketing tools available to them that are often free or very low-cost. Business websites, business directory listings and mobile advertising options can attract buyers for a micro company. Participating in local conferences and trade shows allows a micro business to meet potential customers in person. Make sure to include website and email addresses on all business cards and marketing items.