There are ten crucial steps you must follow to start your own business.
- Choose an Idea
- Plan your Business
- Form a Company
- Register for Taxes
- Get Business Banking Accounts
- Set up Accounting
- Obtain Permits and Licenses
- Get Insured
- Define you Brand
- Establish a Web Presence
In this article, we will be talking about just the first five steps. You can read more here at TRUiC’s website: https://howtostartanllc.com/start-a-business.
Choose an Idea
Choosing the right business idea for you can seem like a daunting task. “What am I good at?” “How do I know this is the right business for me?” “I don’t have any idea of what kind of business ideas are out there.” Does this sound like your inner monologue? Along with using TRUiC’s “Business Ideas Generator,” there are a few more actionable steps you can take.
Hone in on your skills. What have you shown a natural talent for? Think of something that is repeatedly brought up by those close to you. Are you good at numbers, sewing, people skills, baking, graphic design? Is there something else? Great! Jot down a list of things that you’re good at and that you’ve found enjoyable over the years. As they say, “If you’re doing something you love, you’ll never work a day in your life.”
Think of moments that you’ve been involved in that have touched your heart, moments that have made a difference in your life. Were those memories founded at a pool with your closest friends? Were you inspired by the music at your local concert and have a desire to share that with others? Does sitting across the table with a particular individual at a cozy coffee house bring back fond memories? These are all times where businesses have brought memories. Does your business idea pose the opportunity to develop memories within the hearts of your customers and clients? Make your business count.
Plan your Business
Plan, plan, and plan some more! You can never plan enough. There are always questions waiting to be answered. What are you going to name your business? Are you going to sell products or provide services? Both? Who is your target audience? Will you partner with any other companies or individuals? Taking the time at the beginning of your entrepreneurial journey to strategically plan out your business will save you from running into problems later on. You can find plenty of business plan guides, such as the one on TRUiC’s website, to walk you through planning out your dream business.
Form a Company
There are three main categories your business could fall under, an LLC (Limited Liability Company), a Corporation, or a Non-Profit. Regardless of which of these three you choose to go with, they all come with set-up checklists. If none of these options sound appealing to you for your business, there is another option. You can decide not to register your company as an LLC, Corporation, or Non-Profit. Still, in doing so, you would be making yourself reliable for all of your business’s downfalls and liabilities.
Register for Taxes
There a high chance that when you hear the word “taxes,” your eyes roll to the back of your head, and it feels like you have an elephant sitting on your chest. You’re not alone. However, you can avoid some of the heartaches of business taxing by lining out the details in the beginning. Almost all businesses will be required to attain an EIN (Employer Identification Number). This number will pretty much be the only way the federal government recognizes your company. Does your company sell products? If so, you might also be required to register for sales tax. Ensuring that all of your ducks are in a row when you start your business will help you to avoid backtracking, mistakes, and ultimately ending up responsible for dishing out the money necessary to pay for fines and fees that come from improper tax filing and set-up.
Get Business Banking Accounts
Arguably one of the most crucial parts of starting your own business is separating your personal assets from your business assets. If you fail to separate these, you are at risk of losing everything if your business, unfortunately, gets sued. One way you can distinguish between your business and personal life is by opening up a business banking account. This will also help tax season to go much smoother since all of the cash flow has been documented in one bank account instead of multiple or mixed with your personal ins and outs of money. You and your company’s team may also look into opening a business credit card. Doing so will also aid in separation as well as working towards building your company’s credit score.
The Next Five Steps
As was mentioned at the beginning of this article, you can read more about the next five steps to starting your own business by clicking on the link listed above. Remember: Choose an idea for your business, then plan, plan, and plan some more. Properly form your company and remember to file for taxes, so you don’t find yourself in a bind later on. Most importantly, separate your personal and business expenses! These steps will make all the difference in how well your company does in a competitive business world.