Steps to Starting a Business: Everything You Need to Know
When learning the right steps in starting a business, you must first begin with a great idea.3 min read
Steps to Starting a Business
When learning the right steps in starting a business, you must first begin with a great idea. Once you have the idea, you must think of every angle of the business. Ask yourself important questions a stranger would want to know about the nature of your business. Further, prepare answers to potential investors in the event he or she is interested in pouring capital into your company. Having the right questions is also a good way to attract shareholders.
Establish a Business Sound Plan
Once you’ve answered important questions, establish a solid business plan. Your business plan should include the following components:
- Company Description
- Unique Aspects of the Company
- Market Analysis
- Business Structure
- Product or Service Description
- Marketing Strategy
- Revenue Projects
A business plan is essential if you plan to seek outside funding sources. Visit the Small Business Administration (SBA) website to look for funding avenues. With that, a business plan is still needed even if you plan to finance the project yourself.
In order to establish a business, you need to calculate the overall cost of your business endeavors. Moreover, you need to determine any warehousing or storage facilities if you plan to purchase a large volume of products. Further, plan for the space of your business, such as an office space, and elaborate on how much supplies you’ll need in the form of printers or computers.
When gathering resources, open a business bank account to separate your personal and business assets to avoid confusion and IRS penalties. Any products or supplies you purchase solely for your business can be deducted on your tax returns. Consult with an account or attorney to find out what type of expenses you can deduct for your business.
Marketing is an essential aspect of your business, and you need to think of branding and sales efforts. For instance, social media is a key outlet in creating brand awareness and attracting clients or customers. You can start on social media via Twitter, Facebook or LinkedIn. Determine which social media company is best for your business.
While marketing and networking in any capacity, you need the following:
- Business cards
- Email Signatures
Moreover, ensure that your company colors or logos are imprinted on any business cards or letterheads to create credibility and trust with potential consumers.
Shape Your Finances
Failure to create proper accounting measures can hamper the progress of your business. In addition, booking software in the form of QuickBooks or GoDaddy Bookkeeping are great ways to keep track of your finances and the progress of your business. The type of accounting you’ll forge is largely dependent on your company structure.
An account system is useful in:
- Managing a budget
- Establishing prices or rates
- Filing Taxes
Pick and Register Your Business Name
When choosing a name, make sure it is not in use by another company. In addition, choose a name that best describes your company. Also, make sure the name is not to be confused with another company or government agency. When a name is chosen, you must register the name.
Determine Your Legal Business Structure
Before registering your company name, you must determine what your company structure is, such as an S Corp. or LLC. Business structure is crucial when it comes to filing protections or taking out personal liability in the event of an emergency or lawsuit. Choose the best business structure that will safeguard your personal assets.
Register with the Government and IRS
However, an EIN is only necessary if you plan to:
- create a partnership, corporation or LLC
- Hire employees
Upon registration, IRS registrations is the next step. Further, get an employer identification number (EIN) for free on the IRS website. An EIN is the identification used by the federal government to identify your business.
Get Licenses and Permits
The type of licensure or permits you need depends on the nature of your business. For example, you’ll need a general business license in your local county, or you may need to a federal license if you are in the firearms industry. Research the type of regulations you need to satisfy before operating your business.
If you wish to learn more about starting a business, you may post your legal need on UpCounsel’s marketplace. UpCounsel accepts only the top 5 percent to its site. Lawyers from UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Stripe, and Twilio.