Starting a new business can seem like a daunting proposition. If you manage to hit the market with a timely idea, you can see your business grow exponentially; however if don’t have solid foundation, like a business plan, you can find your business struggling, no matter how great your idea is.
Following is a twelve-step program for starting up a business. It’s a simple and easy checklist that features only some of the things you should take into consideration with your start up venture.
The Run Down
- Make sure you have a business plan in place.
- Look into incorporating your business.
- Get a Federal Tax ID and State Tax ID (if applicable).
- Contact an attorney. Starting a new business means that there are legal issues you should be aware of and getting professional advice will help give you solid footing.
- Obtain funding, whether it’s through venture capital, investors, or an unsecured business loan.
- Open a business banking account to separate your personal finances.
- Get business insurance to cover you in the event of an emergency.
- Find the right location for your business. Different states and municipalities offer varying incentives for new business growth, and the physical location can be critical to your success.
- File for all necessary licences and permits to remain compliant.
- Develop a marketing plan to promote your business.
- Look for hidden or overlooked costs such as payroll, equipment, and other expenses.
Step One: Write a Business Plan
Putting together a well thought out business plan is essential to the stability and growth of any business. You will want to list the major players involved, the functions of each of them will play and what goals each company member will have and how they will contribute to the businesses overall success. If you are interested in obtaining a business plan, click here.
Step Two: Incorporate Your Business
Incorporating, whether it’s as an S-type corporation or limited liability corporation or other entity, protects your personal assets from the debts and liabilities of the business.
Step Three: Obtain a Federal Tax ID and State Tax ID (if applicable)
The Federal Tax ID Number or Employer Identification Number (EIN), is essentially a Social Security Number for the business. How do you know if you need an EIN? If you: have employees; operate your business as a corporation or a partnership; file any Employment, Excise, or Alcohol, Tobacco and Firearms tax return; withhold taxes on income, other than wages, paid to a non-resident alien; have a Keogh plan; with any of the following types of organizations — trusts (except certain grantor-owned revocable trusts, IRAs, Exempt Organization Business Income Tax Returns), estates, real estate mortgage investment conduits, non-profit organizations, farmers’ cooperatives, and/or plan administrators.
Step Four: Contact an Attorney
Depending on the nature of your business and the state in which it is incorporated and operates from, you may need legal protections. An attorney is an investment in your company and will save you time and money over the long term. Check with your state for a listing of attorneys by area of practice and in good standing.
Step Five: Hire an Accountant
With the intricacies of the U.S. Tax Code, having a qualified accountant to guide you to balance your books and to advise on what type of corporation you should form is essential.
Step Six: Obtain Funding
Whether by investors, family and friends, secured loan or unsecured loan, you will need money in order to finance your start up business.
Step Seven: Open a Business Bank Account
This is a very important step as opening a separate account for your business will ensure that your personal funds and that of your business are clearly defined.
Step Eight: Get Business Insurance
Insurance can sometimes save your company if you experience a catastrophic loss and also protect your cash-flow should an unexpected accident occur.
Step Nine: Determine Location for Your Business
Where your business is located, starting with the state, the county, the city, even down to the neighborhood, can affect the costs of starting up your business and ensuring that you receive the full benefit of a local, county, or state chamber of commerce. This is also a critical consideration should you be opening a business that will need a great deal of foot traffic (a brick and mortar business).
Step Ten: Get Licenses and Permits
Depending on your business type there may be certain operating licenses you’ll need from the local and state authorities. Permits may also be needed for the physical building itself, if you are refitting a location or building new, and for outfitting your business.
Step Eleven: Develop a Marketing Plan
Make a plan that includes traditional media, social media, a website, and promotions. Spreading the news about your business is a recurring investment and should be mapped out.
Step Twelve: Look for Hidden or Overlooked costs
Some of the overlooked costs are staffing, equipment, deposits, licenses, and fees. These costs can add up quickly and throw your budget off. Making a list of all possible expenses will help you to plan your finances accordingly.
Starting a new business is a challenging endeavor. It can present you with a series of unexpected costs, additional fees, and leave you wondering where you will find the money to finance your start up. If you have been the victim of Internet fraud, AmOne can help. Our knowledgeable associates are ready to guide you through the process finding the right financial solution for your new business. AmOne offers solutions; your call to us is free and we won’t try to sell you anything. Find out how to reach us and learn more about how AmOne can help you today.