When looking to start a business, don't overlook the value of solid planning. Great strategy and execution are what set successful businesses apart and give them a competitive edge.

Here are five key steps to bringing your business idea to life and set up for success:

1. Understand potential customers and competitors

It's important to know who potential customers will be to determine how to best reach, attract, and serve them. Identify top competitors, review their business models, and decide how to position your new business competitively in the market. 

Here are three low-cost ways to learn more about future customers:

Look at demographic data. Demographic data helps zero in on a target customer base and make smarter decisions. The US Census Bureau's QuickFacts tool has a wealth of free demographic data on every state and county, as well as cities and towns with a population of 5,000 or more. Use social media as informal focus groups. Social media is a great tool for promotion, but it's also handy for collecting insights about what customers want. Build a social media presence for the new business and use it as a way to gather feedback.Conduct an online survey. Find people willing to provide input or referrals to generate a list of prospective customers' emails and use them to create an online survey to gather input or feedback.

Research competitors to identify similar businesses in the area. Read online reviews to find out what their customers like most — and least — about them and use that information to inform your business plans. 

2. Create a business plan

Once customer and competitive research are done, create a business plan that maps out the details of the new business and how it will operate. 

This plan will be crucial in securing funding as most lenders and investors require a business plan.

A business plan for a new business should, at a minimum, include:

Executive summary: Briefly explain the business, the problem it's solving, the market opportunity, the target audience, and high-level financial projections. Business overview: Define the industry and audience; explain the unique position of the business.Products and services: Define the products and services the business will offer, including product sourcing, pricing information, and any training or certification needs. Management and operations: Outline who will run the business and operational specifics like where the business will be located and employees or other resources to be used.Customers: Define the target customer base — what geographic area they will come from, their age range, marital or family status, and income level. Sales and marketing: Lay out the sales and marketing processes, including what tools or vendors will be used, and a marketing plan and strategy to attract and retain customers.Competitors: Evaluate competitors, assess what they do, what customers like or dislike about them, and how to differentiate the business and stand out in the market.Finances: Do some basic financial projections that show how the business will generate revenue and create a path to profitability — and be based on expenses and assumptions around how long it will take to develop a customer base. To secure outside funding, potential lenders or investors will likely require a business plan that includes more detailed projections of sales, cash flow, and profits and losses. 

Business plans should typically be between 10 and 25 pages — something that someone can read and digest in less than an hour. 

Several business planning apps and programs can guide you through the planning steps and make updating and fine-tuning the plan in the future quick and easy.

3. Find a mentor and peer group

Having relationships with other business owners — including more seasoned ones — and learning about their experiences are invaluable. Mentors and other business owners can act as a sounding board for ideas, connect you to resources, and help avoid costly mistakes. 

Here are some ways to find a business mentor:

The Let's Get Started program from Spectrum Business provides free and valuable resources, guidance, and mentorship to new and aspiring business owners. Get matched with a mentor at SCORE — the Service Corps of Retired Executives — which has over 10,000 volunteer small business mentors across the country. Join an industry association or local business networking group and seek out a mentor through those connections.Connect with entrepreneurs using LinkedIn or other online networking platforms.

Finding a peer group of other business owners is also a great step. Here are some ways to do that:

Get involved in local business-networking groups, trade associations, or chambers of commerce.Conferences are great opportunities to network and meet other business owners.Join social media groups for entrepreneurs or other online groups for business owners. 4. Consider how apps and programs can make the business more efficient and effective

Business software can help small businesses be more productive, engage customers, and more effectively manage their operations. 

Many business software solutions offer free or low-cost options for new and very small businesses. These allow the business to scale up, accessing more features and functionality as the business grows. Look for bundles that package multiple types of business software together as a way to keep costs lower.

The right software solutions can ultimately pay for themselves by helping the business work faster and smarter. Many solutions also can be connected to each other — sharing data, reducing manual work, and providing valuable insights.

Examples of types of business software to consider, depending on business needs:  

Marketing platforms that make engaging customers across different channels, from email to social media, fast and easy while providing data on what marketing is working best.Spectrum Business Connect makes it easy to connect with customers through messaging, video conferencing, and file sharing.  Customer relationship management (CRM) platforms that track customer preferences, communications, interactions, and provide better service.Bookkeeping solutions that keep track of key financial data, such as sales, revenue, and spending, while easily running reports and doing analysis.Online booking solutions that let customers easily schedule appointments with the business's website or social media.

Programs and apps require fast, reliable connectivity, so choose a high-speed business internet service that can easily support them. Home-based business internet plans are typically designed and priced for new businesses without a brick-and-mortar location. 

5. Attract the first customers to your business with smart, small-business marketing strategies

Attracting and retaining the right customers is critical to small business success.

Here are three strategies for attracting new customers to a business:

Start by engaging people and growing a network. Friends and other existing connections are a great place to start outreach — as this helps start generating word-of-mouth marketing. Not only will they likely be happy to support the business — especially in exchange for a discount or gift — but they may also provide valuable feedback and online reviews. Partner with complementary businesses. Work with other businesses to cross-promote each other's products or services. For example, a new landscaping company can partner with a business that lays concrete for patios, or a gift shop can partner with local artisans.Offer something for free or at a discount. When starting out, customers need to try the business and post reviews online. Beyond offering a product or service discount, offer free information, such as an in-person event or webinar where people learn more about the business. Also, consider offering coupons to encourage people to check out the business.

Leverage word-of-mouth marketing and grow organically from there. Encourage customers to keep coming back by creating a customer loyalty program, build an email list and social media following that the business regularly engages in, and offer a great customer experience.

Starting a business is an exciting time, but it's the planning and insight that goes into it that will determine success over the long term. 

Launch your business idea with guidance from Spectrum Business. From mentorship to educational resources and cutting-edge solutions, the Let's Get Started program has everything you need to succeed.

This post was created by Spectrum Business with Insider Studios.