Business 101: How to Open Your Own Business
Starting a business allows you freedom from working for someone else, but also comes with the difficulty of running the show yourself or with a partner. Starting a business requires more than just an idea. You'll need to organize, plan and thoroughly research every aspect of your business to make it successful. Following certain procedures before starting a business helps it to start off on the right foot and lessens the chance of failure.
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Instructions
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Decide on what your business will consist of. Make a list that includes types of products or services your business will sell; how large your business will be; whether your business will be a sole proprietor, partnership or corporation; and anything that makes up the foundation of your business.
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Write a business plan. Business plans include business structure, profitability, product or service it will sell, marketing methods, start-up costs, and every detail about your business. Business plans are a necessity to obtain funding.
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Research locations. Location is key when starting a business, especially if people need to come to your business to buy your product. Choose a location that allows your business to stand out unobstructed by trees or other buildings, and ensure it is centered around a populated or busy part of town. Talk to people and other businesses in the neighborhood to get an idea of what location would fit your business best.
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Obtain funding for your business. If you already have cash, then this is unnecessary, but most businesses require some sort of financing. Approach banks with your business plan and ask for a loan or research government grants to fund your business.
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Register the name of your business. In most states you must register your business name, unless you use your legal name as the name of your business. Some states require you to register with the state government, others with the county clerk's office, and some require no registration at all. Laws for all 50 states regarding business names are available at the government's business information website.
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Register your business for taxes and tax numbers. Register your business with the IRS and state and local revenue agencies to obtain tax ID numbers for your business and employees. Nearly all states require tax permits and income taxes for businesses. All states require employment taxes. Consult the government's business information website for specific information about your state.
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Obtain the required licenses and permits for your business. All businesses require permits and licenses to legally operate. Different businesses require different permits and licenses. All states require different permits and licenses, too, so consult the government's business information website for details on which permits and licenses your business will need.
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Resources
- Photo Credit business image by Jaroslav Machacek from Fotolia.com
