Owning and operating a business can be a quite difficult process for many people, even if you are a veteran to the business world. There are different things that you will have to take care of when you are setting up a business and it can be difficult to remember them all due to the highly stressful environment. It is always a great idea to have a start-up business checklist to ensure that you cover every aspect of starting your own company. Below are some points that you want to consider adding to your list to ensure that you do not forget anything.
Writing a Business Plan
The number one aspect to a start-up is to have a proper business plan that will provide you with the steps that you will need to execute in order to ensure the success of your business. This is also important as it will help you find investors to fund you and to make important financial decisions. A business plan may be required for legal reasons in certain cases. The importance of a business plan cannot be emphasized enough as it will give you important step-by-step instructions on how you will reach particular goals while running your business.
Get Help or Training
Although you may think that you can start a business on your own, it is an incredibly difficult task and you may find that you will require the assistance of a professional or mentor to provide you with training. The information that you will receive from business training is incredibly invaluable as it will teach you about the most important aspects of running a business such as financing, business plan preparation, and even how to expand your business over time. Also, networking is a great way to launch your business and get to know other business owners.
Choosing a Location
Now that you have the planning completed for your startup, it is now time to find a place that you will want your business to be located. Most cities offer an ample amount of space at affordable rentals that would be perfect for different businesses. You should take the area into account and determine whether your location will be well-received or if you should continue looking for a venue. As an example, opening a pizza parlor right beside two other pizza places may not be the best decision. Generally your business trainer/consultant will help you to determine whether a location is suitable for your needs. Your real estate agent can be an incredibly useful resource as well.
Here are some considerations for a business location:
Financing a Business
Although it may seem simple to complete the planning associated with opening a business, it is a touchy-task that can wreak havoc on your finances. Where possible, you want to refrain from using your personal assets whenever possible because if the business fails, you won’t want to be dragged down as well. This is where finding financing can become quite useful. Consider government grants for new businesses, investors, or any other type of venture capital to help you get your business up and off the ground.
Here’s a good overview of financing options to consider:
Considering Tax & Legal Aspects
As a business owner it is your responsibility to determine how you want your company to be covered in the event of an accident or a situation where you are liable. This is where you will want to decide which form of business ownership is the most advantageous for your needs. As an example, you will need to choose between different categories such as partnership, LLC (Limited Liability Company), non-profit, etc. Each title has its own array of advantages and disadvantages, most of which you will learn from your business training.
Creating and Registering a Business Name
The majority of business owners generally create their business name while drafting a business plan and many even have the name before they create one. Your company name will be what your customers use to identify your business and the products or services that you offer. It will also be the name that you do most of your business as. It is important to choose a fitting name, as an example, you won’t want your business name to be Joe’s Furnaces if you are selling donuts and coffee. Once you have decided on a name it will be time to register it with your state or provincial government.
Dealing with Taxes
Taxes are an essential part of owning and operating a business and as the owner, they will be your responsibility. Ensure that you register your business for both state/provincial and local taxes. Prior to that you will also need to receive a tax identification number. This will allow you to claim taxes and report your annual revenue to the IRS to ensure that you do not have any issues associated with tax evasion.
The above seven points summarize what you’d need to take care of when you are looking to start a new business. While the process can be daunting at first, it is certainly an exciting time for the entrepreneur in you. Take it like a journey to a new place and you as the explorer.