Steps to Get Your Business Started

Starting your own business can be a challenging but rewarding endeavor. Planning for success is one of the best ways to ensure your efforts will be profitable. Before you establish your own business, make sure you've taken these essential steps.

1. Naming Your Company - Your company name is the first impression you will make on potential clients or customers.
2. Writing a Business Plan  - A strong business plan shows potential investors you're serious.
3. Financing Your Business  - Securing start-up capital is essential.
4. Choosing a Location - The right location is key to your success. Consider accessibility, size, and budget.
5. Establishing Your Business  - Acquire the appropriate licenses to operate your business and choose the business entity type that best meets your needs.
6. Next Steps - Success is never final. Arm yourself with knowledge.

Naming Your Company

Think of a name that is unique, and lets potential customers understand what you do. This will allow you to spend less money on advertising and marketing. Utilize a service like Register.com to choose a domain name for your online marketing. You should also consider filing a trademark to secure the name you've chosen.

Writing a Business Plan

Every budding enterprise should have a business plan to focus the direction, outline operations, and help secure investors. The more prepared you are before you start your business; the more successful it will be in the long run. Here are some essential elements of a strong business plan:

• Cover page-short identification and description of your business.
• Table of contents-allows readers to reference a specific section.
• Executive summary-overview of your total plan, outlining the steps you will take for success.
• Business background-highlights your skills and experience in the field.
• Marketing plan-details the products and services you're offering, your market, pricing strategy, and plans for marketing and advertising your business.
• Action plan-details the specific action-items you will utilize to create and deliver your products and services.
• Financial management, statements, and projections-source of start-up capital, monthly budgets, projected expenditures, expected return on investment, projected balance sheets, accounting strategy, and more.
• Operations-hiring procedures, insurance, leasing, equipment and other expected operational costs.
• Closing statement-confirmation of goals and objectives for a successful business.
• Appendix- statistical analysis, sample marketing materials, and resumes.

Financing Your Business

If you use your own money to start your business, you'll have more control over the cash flow and fewer debts to repay in the future. However, using your own capital may require you to start out with a smaller business.

If you plan to rely on outside investors, be prepared: Securing a loan or finding investors can take anywhere from two to three months, or longer. You may also be expected to contribute your own money to finance between 25-30% of the start-up costs.

Many small businesses receive funding from friends and family. When using this option, writing contracts to ensure everyone understands the inherent risks of investing is advisable.

Choosing a Location

Operating a home based business is one way to keep initial costs down, providing this is a feasible option.

If it's necessary for you to maintain an office or storefront, there are a few important things to look for.

• Consider rental costs, parking, accessibility, and the strength of the surrounding business community.
• Think about the size of the location, and whether it allows room for your business to expand in the future.
• Remember to budget for any potential renovations on your location, as the scope of work needed will impact your start-up costs and dictate how soon you can open for business.

Before finalizing your location, contact the local zoning office to ensure the space is zoned properly to allow your type of business. As a general rule, don't sign any contracts or enter into any verbal agreements until the most important details of your business are settled, including financing and licensing.

Establishing Your Business

The types of licenses required for starting a new business vary from state to state, city to city, and county to county. Before operating your business you need to ensure that you comply with the state, county, and local government agencies. Next, you'll want to establish yourself as a business entity. This means taking the steps to legally add LLC or Inc. to your name. There are many reasons to establish a business entity; including protecting your personal assets and creating additional tax benefits.  

Once you have established your business entity, you'll want to secure an Employer Identification Number (EIN), also known as a Federal Tax ID Number (TIN).  

If you plan to have employees, it's a good idea to secure both unemployment insurance and workman's compensation insurance. Remember to prepare an employee handbook to set forth expectations and establish guidelines for your staff.

Establish your business entity.

1. Obtain your Employer Identification Number (EIN).
2. File your Doing Business As (DBA) form, also known as a Fictitious Name Filing.
3. Obtain business licenses and permits.
4. Qualify to do business in multiple states.
5. File Annual Reports and Franchise Tax.

The Internet is a great tool for conducting your primary research. Simply type your interest into your favorite search engine... you'll find plenty of information. Other resources at your fingertips are business publications. Many titles are available to assist you along the way.