Starting a business from the ground up is no easy task. Below, we’ll highlight the basic steps to planning financial, design, and legal structure to make your new business idea a reality.
1. Know your market:
Consider your business idea and do your related market research. Your findings will indicate whether there’s room to take your initial plan and grow it into a success.
Market research will tell you about the customers, current and potential, that will be interested in your product as well as businesses that you’ll be competing against.
2. Craft a business plan:
After some market research, you’ll need to create a proper plan. This will be a necessary tool when finding people to invest in your company. Most business plans feature a mission statement, description of the product or service, as well as information about the company leaders, employees, and physical location. If you are looking for funding, you’ll need more financial information and growth plans to provide to potential lenders.
3. Source your funding:
Use your business plan to determine how much money you’ll need. Decide if you’ll be able to fund the business yourself or if you’ll require venture capital from investors. If you don’t want to involve investors, other options include crowdfunding and small business loans.
4. Determine your location:
Decide if your business will utilize e-commerce and online services or if you’ll need to build a brick and mortar store. If you’re establishing a new location, research zoning ordinances, and neighborhood business competition. It will help you to find the best place for your budget. Once you’ve picked your site, hire a construction company like Proficiency design & Build Ltd to bring your renovation or new design to life.
5. Choose your legal structure:
Your decided legal structure determines tax payments, liabilities, necessary paperwork, and allowed profits. Examples of structures include sole proprietorship, partnerships, limited liability companies (LLCs), corporations, non-profits, cooperatives, and more. Consider your business goals before deciding on the best structure for your business.
6. Pick a name:
Sometimes this step is the hardest part! Pick a name that best reflects your brand and the spirit of the company. Make sure you choose an original name and won’t get confused with other, similar brands and organizations.
7. Get registered:
Now that you’ve picked your name, it’s time to register it for legal protection. These steps will be determined by the legal structure you’ve decided. Most processes involve registration with local and state governments. In some cases, you’ll need to register with the federal government. If you’d like to trademark your name or product or apply for a tax-exemption, those are extra steps you’ll take with additional organizations and the IRS.
8. Apply for Tax IDs, Licenses, and Permits:
Your tax IDs and Employer ID number will be necessary to open your bank account and complete tax payments. Once you’ve received these identification numbers, you’ll use them to apply for licenses and permits needed to run your business legally. These are determined by factors such as industry, location, state, and more.
9. Open a bank account:
When you’re ready to accept or spend money as your new brand, you’ll need to open a business checking account. There are many options for benefits that come with business accounts. Consider interest rates and transaction fees when deciding what account is the most beneficial for you.
Cut the Ribbon
Now that you’ve gone through the entire process from concept to execution, its time to open your new business! Now, focus on managing healthy business growth to ensure a successful future.