Before you jump in and join the state’s bustling entrepreneurial scene, there’s some groundwork to cover. Starting a small business in Georgia takes a bit of planning. From picking the right business model to doing your homework on the local market, the following steps should be your first moves toward success.

Decide What Type of Business to Start

The first thing you’ll need to figure out is what kind of business best suits your skills and interests. It’s tempting to jump on trendy business ideas, but remember that Georgia has a diverse economy, with sectors that include advanced manufacturing, technology, life sciences and film thriving alongside each other.

Conduct a self-assessment to align your skills and passions with one of these sectors. For example, if you have a tech background, consider the burgeoning financial technology (fintech) scene in Atlanta. Alternatively, if you have a passion for the life sciences, take a closer look at any existing gaps in healthcare solutions. By matching your strengths with specific market opportunities, you’re setting up a sustainable business model right from the start.

Determine Your Reason for Starting a Business

It’s also important to know your “why.” A well-defined reason for starting your business can serve as a unique value proposition—and help you stand out in a competitive environment.

Let’s say your objective is to elevate patient care standards. This “why” will influence every business move you make, from the types of projects you choose to the partnerships you form. Having a nuanced purpose helps provide your business with both direction and resilience.

Do Market and Competitive Research

After you’ve clarified your “why,” it’s time to take a closer look at the “who” and the “what”—who are your potential customers and what are their needs? Comprehensive market and competitive research will give you the data you need to answer these crucial questions.

For example, if your mission is to elevate patient standards, start by identifying gaps in the current market landscape. Are there unmet needs in patient care that align with your mission? Also, look into existing healthcare providers, their service offerings and customer reviews—this research will help you offer a product or service that’s distinct from your competitors but still valuable for your target market.

Create a Business Plan

With your market and competitive research in hand, it’s time to consolidate the data into a comprehensive business plan. This is something you should work on even if you’re not planning on obtaining a loan from a lender. While it’s a document that lenders require, it’s also your strategy guide for the first several years of your business.

A well-crafted plan covers everything from your mission to market strategies to financial projections. Think of it as the blueprint for your business that sets out your strategies and goals, plus a roadmap for achieving those goals. For example, if your goal is to improve patient care, your plan should outline how your services will fill existing gaps and how you’ll measure success.