Those who want to start a business
off on the right foot need to engage in some careful planning and then take
some important legal steps in order to prepare to do business with the public.
The following sections cover the
planning stage, the financing stage and the legal preparation stage that a
business founder will ideally need to go though in order to start a business.
The
Planning Stage
The first step to take when you want
to start a business should be the preparation of a detailed business
plan. This blueprint for your new business will cover how you will set up
and run your business profitably, as well as what your startup costs are likely
to be.
If you are new to starting
businesses, then you can take a course on how to start a business properly, as
well as some guidance on how to operate successfully to give yourself more
information, strategies and confidence.
You then need to identify suitable
business premises of appropriate size and zoning located where your potential
customers can easily find you, and which is currently available for rental or
purchase. Be sure to contact the landlord or owner to determine
availability, whether you will qualify to buy or rent it, and the costs
involved in securing it.
The
Financing Stage
Once you have successfully passed
the planning stage, you are ready to look for financing for your new business.
If you are independently wealthy, then you can finance it yourself.
Alternatively, you can seek additional private financing options from well to
do family members or friends by requesting an audience with them and presenting
your business plan.
If those methods of funding do not
give you the amount you need to start a business, then you can apply for more
public funding methods, which would include government backed business loans
and bank loans. Depending on the nature of your business, grants may also be
available to you.
Another option involves approaching
venture capital companies with your business plan to see if they might be
interested in providing financing. They typically pool their investors’ funds
and so have more money to invest in worthy business ideas.
The
Legal Preparation Stage
This is the final stage of the
business start up process and it typically starts with deciding upon a suitable
legal structure for your business. For example, it can be a sole
proprietorship, a partnership, a corporation, a non-profit, etc.
You then need to come up with a
business name and register it with your state’s government, usually via the
Secretary of State’s office.
At this stage you can obtain a Tax
Identification Number from the Internal Revenue Service, as well as from your
state’s tax authority. If you plan on hiring employees, then you will
need to look into insurance that will cover workers’ compensation, unemployment
and disability. Securing liability and property insurance may also make
sense.
The final step that needs to be
taken before you can open your business is to obtain all permits required to
operate your business from the appropriate federal, state, county and city
authorities.
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