Let’s discuss how to start your own business so you don’t have to waste another day wondering where to begin.
Make a Plan
In the world of business, there isn’t much we can expect to accomplish without a well-structured plan. Take your time doing some brainstorming about the use of your business plan.
Is it only for yourself and future employees, or are you targeting investors? In the case of the latter, investors need to have access to the plan, so keep that in mind when considering how much detail is needed.
Here are some important things to add to your business plan:
- Describe the company and its name.
- Construct a market analysis showing there is a need for the business.
- Company structure—how will it be run and by whom?
- Plan for daily management of the business.
- Create a marketing plan.
- Outline financial goals.
If the intention is to request funding, include the request after financial goals and projections, so that investors can see your planned success.
Do You Have the Funds?
Every business start-up incurs some expense, but that expense varies greatly. One business might start at the dining room table with a laptop, while another requires a building and the need to pay employees accurately and immediately.
There are three choices for business funding:
- Fund it yourself through the use of your own money.
- Apply for a loan.
- Seek investors in exchange for a role or share of ownership in the company.
Whatever the source, secure your funds before getting too far ahead of yourself in the beginning.
Location
Decide on where to run the business. Ask yourself the following questions to determine location needs:
- Will there be any remote workers or is plenty of room needed for employees?
- What is the location for — production, office space, storefront?
- Does the space need to be accessible to customers?
- Do you want competition nearby or far?
- What demographic do you hope to be a part of?
Answering these questions should help in understanding your business location needs.
Structure Your Business
Every business has a structure, even if it’s small. Understand what your structure is in the beginning, and also prepare for it to change in the future if necessary. A business needs protection, and the structure states what that protection entails.
Here are the most common structures:
-
Sole proprietor
the business owner has complete control, and business assets are not separate from personal assets.
-
Limited liability company (LLC)
personal assets are protected during debt collections or lawsuits against the business.
-
Partnership
this type of business venture entails either giving one partner complete liability but more control and the other partner or partners limited liability but less control (LP), or all partners equal liability and control (LLP).
-
Corporation
this option ensures the highest protection for personal assets and liability, but a higher cost to obtain, in addition to income being taxed with income tax.
other valuable tips from our business blog (new win):
Tax ID, License, and Permits
Obtain a tax identification number (TIN) for the purpose of paying taxes and claiming deductions, and also for business necessities such as opening a bank account. It’s important to apply for any necessary permits and licenses needed for your particular business.
It’s possible to start your own business—but it definitely won’t happen overnight; however, it won’t happen at all if you don’t get started. Using these tips to start your own business is the best way to get your business venture off the ground.
Image Credit: how to start your own business by twenty20.com
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