Ever wondered about how to start a business? There is a lot more to starting one than coming up with the seed idea. For many, the process of setting up a viable legal business is a hardest part. How do you go about setting the foundation right? Well, here are exactly 7 things you need to do.
- Start with a business plan- This is essentially a guide which lists all the goals, along with actionable steps on how to go about achieving each of them. It will act as a roadmap that you can refer back to once you start the journey of doing your business. You can also include your company’s background information for future references.
- Find the location- Is it going to be a Brick and Mortar Company, or an online one that you just need a website for? There will be zoning laws for every state you would have to comply with. Scouring the right location that fits your budget and is approachable by your target market can take time. If it’s an online business, finding a brand name and a domain name that perfectly reflects what your business stands for is a very important decision to make.
- Finance- Getting the business up and running requires funds. You could choose to bootstrap, or apply for government backed or research funds, or seek investments from angel investors or venture capitalists. If your idea is incredibly innovative, you can also choose to seek help from the customers themselves by using crowdfunding and fundraising platforms such as Kickstarter, or Indiegogo.
- Think legal- There are several forms of business ownerships available to choose from, depending on your specific case. These include Sole proprietorship, Partnership, Coorporation, Franchise, S-Corporation, Limited Liability Company, Publicly Held Corporation, Non profit organization. Cooperative and Joint Venture. Operating your company under the correct business structure is every important, and know that each has its own advantages and disadvantages.
- Register the Business name and get your Tax Identification Number. Start by filing a Business License Application. You would need this to apply for the special permits, licenses and registrations required for the operation of your business. Then proceed to obtain your Federal Tax Identification Number.
- Licenses and Permits- Depending on your business, there might be several specialty licenses along with federal, state, city and county licenses you would have to apply for.
- Hire Employees- But before you do, educate yourself about the legal ways to hire an employee, especially if your establishment plans to hire minors as employees; there are many rules and regulations you would have to abide by.
Completion of each of these steps does require its own research, and the licenses do need to be renewed. There are many attorneys, accountants, or business advisors you can seek to consult to make this process easier. There is a plethora of valuable information also available online for your assistance.
We hope this article provided you with a general outline of all the essential steps you need to take to successfully start your own business. Good luck.