Steps to Complete to Start a Business
Maybe you want to turn your hobbies into a lucrative venture or you're looking to turn your big idea into a small business, but you're not sure how to start. Starting a business doesn't have to be complicated, but it does take some planning and forethought. Basic business decisions not only help shape the business plan, they also help define the business. Business definitions are necessary for legal and tax purposes.
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Business Planning
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A good business plan includes a description of the business and analysis of the market the business is preparing to enter. The description should include information on the features of the business and how the various business elements work together to progress toward success. The market analysis should include a description of target customers and the projected size of that target demographic. Other portions of your business plan might include; marketing, management, various product or service offerings and funding plans.
Location
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You need to decide where you'd like to set up your new business. Many entrepreneurs start their business out their home and build up to a commercial location. In some areas, zoning laws apply to both home-based and commercial businesses, so you're going to want to carefully review all applicable location laws. If you decide to use commercial space you'll need to decide if you're going to rent space or buy space, and consider the specifics for each option.
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Financing
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Figure out how you're going to finance your business. If you're lucky enough to have enough capitol to start up without outside funding, you'll still need a budget for fiscal, accounting and tax purposes. The government offers a variety of small business start-up loans and grants. Other private organizations fund through venture capitol or seed resources.
Business Structure
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You have several options when it comes to the legal structure of your business. Sole proprietorships are owned only by you, making you personally responsible for all debts and commitments. Partnerships are basically the same as a sole proprietorships, except that the parters (two or more people) share commitments and burdens of debt. All types of corporations lift the burden of debt and obligation off of the owners, and the company itself becomes the liable entity. Types of corporations include; S corporations, corporations and limited liability corporations (LLC).
Government Requirements
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You need to register your business with the appropriate government agencies, this usually means filing a "Doing Business As" (DBA) form. You will also need to obtain a tax identification number and any applicable environmental permits. Certain other forms and permits may be necessary depending on the business type, size, location and number of employees. It's best to check with local regulations for informational on all possible government requirements.
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References
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