It is very exciting to start a new business but at the same time, it is as demanding. There are numerous steps involved in this entire process which you must follow in order to not just obtain the maximum outcome out of your business but also make it successful. Here are top 10 steps involved in starting a business that will not just help to start but make it prosper too.
Do Your Research Thoroughly
It is very important to commence your business by doing a considerable amount of research. Research can help you immensely in understanding and learn a lot about the area in which your business is based. In order to ensure the viability of your business idea, research is paramount.
While researching, you should also frequently ask yourself such questions that access your idea and look at it from every single aspect. Receiving feedback from mentors, guides and associates is important, too. If you wish to test your idea, do so by creating a landing page that simply describes your service or product. Keep an eye on the people who are willing to provide their email addresses so that when your product or service is getting launched, they are notified. Thus, this process will provide you an idea about how post launch your business will be doing in the market.
Meet Legal Requirements
It is extremely important that you should either get your business registered or form an LLC with the state as by doing so; you will guard your personal assets from business debts and liabilities. However, this is not it; there are other advantages that you will receive after forming a corporation or LLC, such as tax advantages and greater credibility with customers, vendors, and business partners.
Select an Accountant and Attorney
Accountants and attorneys are very helpful when it comes to seeking advice. However, it is important that you select the ones who are experienced in their area of expertise. Asking for references from someone who has previously worked with other business related to yours such as mentor or professionals can be very helpful as they will be able to guide you properly.
Get Necessary Tax Identification Numbers, Licenses, and Permits
Always remember that majority of the businesses require licenses and/or permits to operate in a city, municipality, county and/or state. A federal tax identification number, or employer identification number (EIN), performs like a social security number. It is essential for corporations and LLCs that have many employees. In order to know whether a state tax identification number is necessary for your state, then get in touch with your state’s taxation department.
Insure Your Business and Consider Other Requirements
It is seen that there are few industries that require distinct requirements for insurance. In order to know the needs of your insurance, discuss it thoroughly with your insurance agent and receive the right amount and type of insurance. Don’t forget to overlook at any other demand of government tax and insurance that perhaps may be required for your business, especially if you have many employees.
- Workers’ compensation
- Unemployment insurance
- State and local tax
- OSHA requirements
- Payroll tax requirements (such as FICA, federal unemployment tax, and state unemployment tax)
- Federal tax
- Self-employment tax
- Sales and use tax
Arrange Your Business Accounting and Apply for Loans
When you have a small business, you have the choice of either employing an accountant to handle your accounts or entrusting yourself to do the job. Be it anyway, what counts is that your payments, all your business disbursements, revenue, invoices, accounts receivable/accounts payable, etc are correctly accounted.
Now in case you lack the proper capital that is required to commence a business, it is the right time to look for funding from banks or with the help of Small Business Administration (SBA) loan programs.
Establish a Business Line of Credit
By establishing a business line of credit, you don’t have to provide collateral — assets, such as real estate, which the lender can sell if you turn out to be a default. This assists in having a solid credit history, which is a good boost for vendor and supplier relationships. It is suggested for your business to getting a Dun & Bradstreet (D&B) DUNS (or D-U-N-S) number because many a time, it is often required to check the creditworthiness of a business.
Create a Business Logo, Visiting Cards and Stationery
Having a catchy business logo helps in creating an identity for your business in the minds of the people. Furthermore, having business cards, stationery, and other related items can help potential customers find and remember you.
Keep Ready your Workspace
If you have a business that is home-based, make sure you are matching the requirements of city zoning for your area. However, if you have a business that is non-home-based, it’s evident that you will require having an office space. In this case, it is important to look after every aspect, from leasing the place to purchasing the furniture and other office equipment that are necessary to run a business.
Market Your Business
With the help of the internet, it has become possible to affordably advertise your business. With online marketing, you can also look at the return on investment with every cent that you’ve spent. Google Adwords and Facebook advertising are the two most popular places where you can begin your marketing. Other things that can help a lot in marketing your business online are:
- Search Engine Optimization (SEO)
- Social Media Marketing (SMM)
- Content Marketing
- Email Marketing
- Mobile Marketing
- Local Marketing
Running a startup or a business can be exhilarating and challenging at the same time. Your idea, attention, energy, observation, and belief, everything is counted. It’s a journey that demands immense hard work but if you are prepared to take it all, then the rewards that follow is all worth it.