How to Get a Business Started

Starting a business is exciting. It also can be intimidating. There is so much to do; decide on a name, find a location, obtain funding, satisfy the legal requirements and select your form of ownership. Planning and preparing for success are the best ways to turn your dream into a reality.

Instructions

Difficulty: Challenging

Things You’ll Need:

• Accountant
• Lawyer
• Tax expert
• Financier
• Real estate agent

1. Name your business. Choose a unique name that accurately reflects the nature of your business. File a trademark with your state Secretary of State office to protect your name. Do the same with the U.S. Patent and Trademark Office (USPTO) for wider protection. The USPTO also will search all state and federal trademark registers to see if your name is currently in use. For online marketing purposes you also will need to register a domain name (Register.com).
2. Establish your business. Determine what entity best suits your needs. Most businesses begin as a sole proprietorship. Other options are a partnership, where ownership is shared by two or more persons; a corporation, which exists separate and apart from the owners or its shareholders; or a limited liability corporation (LLC), which provides a corporation's limited liability features and a partnership's tax efficiencies and flexibility. Each presents different legal and tax implications. Attorney input is recommended.
3. Prepare a business plan. When starting a business concentrate on your direction, detail your operation and define your goals and objectives. Include your skills and experience, marketing strategy and financial projects. A well written plan is critical. It will serve as your roadmap to success, help secure loans and promote growth.
4. Secure finances. To the extent possible estimate your start-up costs. Differentiate between one-time, ongoing, necessary and optional expenditures. You may choose to put up your own money to start your business, allowing for more cash control and less debt. If relying on outside sources you can anticipate a two to three-month wait. You also may want to consider loans from family or friends. Legal and financial advisement in this area is recommended.
5. Select a location. The right location can make or break your business. Unless you are starting a home-based business, there are several factors to consider when searching for a storefront, including rental costs, parking and accessibility and the neighboring business community and its expansion potential. Ask if there are any legal restrictions associated with the area.
6. Obtain necessary licenses and permits. Cities, counties and states require permits and licenses for many businesses. All states call for a business license for tax purposes and conducting basic functions. Licenses also may be needed for certain occupations and professions, products sold, trade name and employer registration. The federal government requires an Employer Identification Number (EIN), aka a Federal Tax Identification Number, to identify your business. Visit www.irs.gov to find out how to learn if your business needs one and how to apply.
7. Assemble experts. Depending on your business's size and nature, you'll need to hire an accountant, lawyer, tax expert, financier and a real estate agent.

Tips & Warnings

• Know the market before starting any business.
• Analyze the market to gather information about prospective customers and evaluate the need for your product or service.
• A strong business plan can help secure investors.
• Visit the Small Business Administration's website to take advantage of their wide variety of resources.
• Avoid infringing on another business's name.