Every business starts out with an idea, but it takes a lot of work to transform that idea into an actual reality.
Many people dream of starting their own business but don’t when they realize how big of a process it is. While it is true that starting a business is no small feat, you can also make it easier by breaking the process down into smaller steps.
Here are the top steps you need to follow for starting your own business:
Write A Business Plan
Before you can begin the process of actually forming your small business, you need to first write up a solid business plan. Your plan outlines everything about your business, including your vision for it, how you will receive funding, an analysis of your competition, your projected profits and losses, and so on. You will need to present your business plan to potential investors or lenders such as banks.
Determine Your Budget
Setting a budget is not something you can overlook when forming a business. Be realistic and plan on adding an additional twenty percent to cover unexpected costs (especially if you are self-funding).
Choose Your Legal Entity
Yes, you’re going to have to file a lot of paperwork to start a business. A lot of that paperwork will deal with what entity you choose your business to be (such as an LLC, C corporation, S corporation, and so on), You will also need to apply for a state business license and maybe a city or municipality license as well.
In the initial stage of your business, it will probably be wise to start it up as a sole proprietor, as this will translate to having to pay less initial expenses as well as less paperwork.
Establish An Online Presence
Your business is going to need an active presence on social media (especially on Facebook and Twitter) in addition to its own website and maybe its own blog as well. Secure a URL on popular domain websites such has Go Daddy or HostGator where you an purchase domains for as little as ten dollars.
Your website must be as professional looking and easy-to-navigate as possible, so if website design is not your thing, you’re going to need to outsource it to a professional (which you can easily do by finding website designers on freelancing websites).
Separate Your Funds
The funds for your small business must be different from the funds for your personal accounts. Not separating your funds is a huge beginner mistake, and will only confuse your personal finances and especially your taxes.
The good news is that setting up a separate checking account for your business is incredibly easy, and can be easily accomplished with a quick trip to your bank after you’ve filed your initial paperwork and secured your business license.
Starting Your Own Business
These are the five basic steps that you will need to walk you to make your business become a reality.