Starting a business can be challenging with the obstacles ahead from planning the type of business you want, to inventory, personnel, to the amount you need to initially invest and finding a way to keep accountability.
Don’t let distractions divert you from your actual goal, as you know everything in life is an investment, from school to your daily life and relationships, you’re investing your time. If you do it wisely you will reap the rewards, otherwise you’re wasting everything.
You’ve made the huge decision to start a business.
As you probably know, most efforts to start a business end in failure.
Most likely you have already identified a business idea.
In order to make your business a reality, You need to make a business plan which will guide you from the start and all through the business growth. Depending on the type of business you will start is the amount of money you will need, let’s say if you want to start a small business you do not require a lot of money of course you will involve some initial investment as well as covering ongoing expenses before you start earning some money. You need to make sure it is a business and not a hobby and make sure that you have margins to scale.
Make a financial estimating plan which will include:
permit and license, equipment, branding, inventory, etc. as well as what you think you will need to keep the business for at least 12 months. So, the number combined with both is the initial investment you will need so you need to get financed.
Next step is to choose a business structure
you can choose to be a sole proprietorship, a partnership, a limited liability company (LLC) or a corporation. Depending on the business entity you choose this will impact many factors. Once all this information is already decided you will pick and register your business name.
To establish a business credit,
you need to register for a Dun & Bradstreet D-U-N-S Number. This is a unique identifier for your business, this is available for free at: https://www.dnb.com/duns-number/get-a-duns.html. With this number your potential clients and lenders will check your business credit profile, so make sure to have it at all times.
Register your TIN and EIN
In order to register your Tax Identification number you need to determine your eligibility. In order to do that you need to take into consideration the following: After all validations are done you will get your EIN immediately upon completion. You can then download, save, and print your EIN confirmation notice.
- You may apply for an EIN online if your principal business is located in the United States or U.S. Territories.
- The person applying online must have a valid Taxpayer Identification Number (SSN, ITIN, EIN).
- You are limited to one EIN per responsible party per day.
The “responsible party” is the person who ultimately owns or controls the entity or who exercises ultimate effective control over the entity. Unless the applicant is a government entity, the responsible party must be an individual (i.e., a natural person), not an entity.
Be aware that your application must be completed in one session, as you will not be able to save and return at a later time. After all validations are done you will get your EIN immediately upon completion. You can then download, save, and print your EIN confirmation notice.
With all the above mentioned, paperwork is required since it is part of the process when you start your own business. In this case, you will need to research what license and permits that will apply to your business during the start-up process. With all this paperwork done you need to choose your accounting system , what does this mean; well, this is necessary in order to create and manage your budget, set your rates and prices, conduct business with others, and file your taxes. How can you do this?
You have 2 options: You can hire an accountant or you can consider choosing an accountant software.
Now it’s time to set up a business bank account. In order to do so, you need the following:
- A tax ID number: the IRS will supply you with one
- Social security number: for sole proprietors or partnerships
- Proof of incorporation: for corporations like LLCs
- A business license or business name filing paperwork
There are also costs associated with getting the required paperwork to open a business bank account:
- Register your business name: less than $100
- Incorporation fees: filing fees ($50 – $800 depending on state) and legal fees ($500 – $1500, optional since you can file yourself)
- Business license or permit: depends on the type and state, only applies to some industries
Get into action by building your team and starting the process.
When you’re just starting out, it will be very clear who can help take the business to the next level and who isn’t pulling their weight—meaning that your hiring decisions will be all the more important. In this step you need to make sure you take your time to figure out and get the positions you need to fill out and get their job descriptions (responsibilities). In the beginning, most business owners don’t have the budget for a full-scale HR team. If possible, hiring even one HR staff member early on can save you both time and legal headaches. Since hiring is an area with extensive regulations, you’ll want to ensure that you have an equitable, fair hiring process that’s open to all qualified candidates.
Build Your Marketing to get Clients
Last but not least, once your business is up and running, you need to start attracting clients and customers by creating a marketing plan and while exploring business marketing ideas you’ll want to decide the channels you’re going to use to promote your business and the specific methods you’ll be taking to drive customers to your business and get the ball rolling. Once you’ve figured out the promotional methods that work for you, you can settle into managing your operations on a day-to-day basis and eventually start thinking about growth and what the future may hold for your small business.