Procedures for Setting Up a Small Business in the USA

Always create a business plan no matter what size business you start.

Creating a new business takes many skills such as marketing, planning, business management and accounting. Getting a business running takes commitment and dedication to the many details that you have planned for, and the many that you have not. The biggest decision is whether the business is right for you. Once you have made that decision, it is time to tackled each step until you have created a successful business.

Create a Business Plan

Creating a comprehensive business plan is the most important procedural step you can take to launch your business. A business plan creates the foundation for your business. It provides an opportunity to look at each aspect of your business idea, allowing you an authoritative voice when making decisions. Core parts of the business plan include an opening executive summary, a company description, a market analysis, and information about the management team, the company organization and marketing plans. The business plan should also discuss product creation (if any) along with current and projected financial prospects. The U.S.Small Business Administration has sample business plans to study (see Reference section).

Determine Cost

Financial decisions must be made early. Initially, you will need money for your business facility, equipment, marketing campaigns and materials. For a simple, home-based business, the initial budget might not be very high. As you work through this procedure, take plenty of time to determine how much you will need to get the business open, and how much for subsequent operating costs until you begin to make a profit.

Create Business Name

Determining a name is another important step in starting your business. You must ensure the name is not being used by another company. Go to the county clerk's office and apply for a Doing Business As (DBA) form. Choose a name that fits the business and isn't ambiguous. While you are working on this step, you may want to select an online domain name for your business website.

Obtain Licenses and Permits

You will need various licenses and permits before opening your doors. You will also need to obtain a tax permit in your state to pay sales tax. Examples of other licenses include a liquor license for restaurants, beverage stores and catering businesses, or an export license if you will be exporting goods. You may need a zoning permit to run the business, or a building permit to improve a structure. Most cities and counties have business planners that can help you determine all of the permits and licenses you will need.

Select a Location

Selecting an appropriate location can be one of the most time-consuming decisions you face while starting your business. Whether you are looking for land to build on, or are seeking out the perfect spot for your target market, you must consider factors such as location, costs, restrictions, and lease or purchase terms. For example, you probably wouldn't want to locate an ice cream shop next door to an adult movie rental business. You need to look at square footage and make sure the location is the right size for your business's equipment and storage requirements. The more information you can obtain about locations, the better decisions you can make.

References

• Score: How To Set Up a Home-based Business
• U.S, Small Business Administration: Start Your Business

Resources

• Riley Guide: Steps in Starting Your Own Business