|
Looking for straight forward information on how to start a business?
Every entrepreneur needs to know what steps to take, but getting a picture of the overall process is not always so easy. Many
small business resources give you detailed information up to writing the business plan, but then leave you hanging as
to what comes next.
Minimize your frustration
by educating yourself on the steps you need to take for a successful startup. Brush up on business fundamentals and learn
to avoid common mistakes by downloading our guide, The Essentials for
Starting a Small Business.
Bookmark this article to your favorites list for future reference, then browse our site for more planning tools and
information that will help you get started. Here is an overview of the startup process:
Research
Thoroughly research your business idea, and do not
be afraid to modify or completely revamp your plans if the results of your research lead you down a new path. Identify your
SWOT (Strengths, Weaknesses, Opportunities and Threats). What products and services will you offer? What will set your business
apart from the competition? You can start researching Business Ideas at the bottom of this page.
Your Business Identity
Select
a name. The name should reflect its strengths, and make your customers want to buy from you. Choose a color theme - two or
three colors that you will use throughout your logo, business cards, web site and future marketing materials. You can also
credit instant creditability with your customers by getting a toll free number & internet fax service at RingCentral.
Get Advisors
Perhaps the most important step in protecting yourself from failure
- choose good advisors! Advisors can come in the form of CPAs, Lawyers, and other Experts. Join business networking groups
and subscribe to newsletters or magazines in your industry.
Business Structure
With the help of your advisors, decide on the proper structure. Completing
the Business
Formations process is a very important step in minimizing the amount of tax that you will pay. You should also
educate yourself on other legal matters, such as copyrights, patents and trademarks, that may impact your business.
Business Planning
Write your business
plan. Business planning
is an essential step in identifying your working capital needs, securing financing for your company, and setting your course
of operations.
Licensing
In
the USA, each state/county maintains rules on licensing. Start by visiting your county government web page or business licensing
office to find out what is required.
Federal
Employment Identification Number
Do you need an EIN? Visit the IRS.gov/businesses page and follow the Employers
ID link to find out.
Banking, Credit & Merchant Accounts
Thorougly research your options in regards to banking,
credit cards and merchant accounts. Be very mindful of any fees and/or penalties associated with these accounts.
Financing
How will you raise capital needed
to run your small business? Research
your financing options in regards to satisfying working capital and business credit needs.
Insurance
To protect your new company from unexpected losses,
weigh your options on purchasing insurance for your specific business type. Examples of business insurance include Group Health
Insurance, General Liability, Product Liability, Workers Compensation, Homed-Based Business Insurance, and Internet-Based
Business Insurance.
Protect Your Data
You
will need to ensure that your data is safe. Work out a plan for regularly backing up digital data, organizing hardcopy data,
and safely disposing of documents that are no longer needed. If you have a website or other publication, visit Copyright.gov
to apply for a copyright.
Zoning & Location
Where will you operate? If you are a brick-and-mortar business (as opposed to Internet-based), get information from your
local Zoning Commission to ensure that your building or office location is zoned for the type of business you intend to operate.
Accounting & Taxes
To
make the accounting process as easy as possible, first educate yourself on expenses which are legally deductible. Use a spreadsheet or software that can help you organize your payables and
receivables. Separate personal and business expenses by funneling deductible purchases to your business credit card. Each
year, request a year-end statement from your credit card company - this helps automate the process of documenting and categorizing
expenses. You should also learn to make efficient use of your time & money (ie., find the best way to save on big ticket items
such as business travel).
Supplies & Equipment
Identify equipment you will need. Find suppliers that can offer the
best quality and price. Negotiate quantity discounts if applicable.
Inventory
If you intend to run a retail operation, you will need to establish systems to track inventory.
QuickBooks Point of Sale Software can help integrate sales and
inventory management.
Hiring &
Outsourcing
How will you complete your projects? Determine whether hiring employees or outsourcing your tasks to independent contractors is best for your business.
Recommended Reading:
|
