Are you starting a business? The exact steps you will need to take will depend on the industry you will be in and the specific products or services you will be selling. But across the board, there are a few basic steps that are applicable no matter what type of business you are starting. Let’s take a look at those steps now.
Things To Do Before Putting Up a Business
- Research your target market to determine if your idea is viable. A lot of people dive into a new business venture based solely on their own passion. While that is important, it is also important to make sure other people are likely to be passionate about your business too. So, before you take any additional steps, research your target market and try to ascertain whether sufficient demand exists to justify starting the business you have in mind. Hopefully, you will be able to proceed. But even if your initial idea does not turn out to be viable, you might discover another unmet demand in the market as you are researching. That could give you an idea for another possible business venture.
- Create a business plan. Once you have pinpointed a product or service and a target market, you can create a detailed business plan. This should incorporate a company description, the market analysis you just conducted, how you will organize your business, what products or services you will sell, how you will handle marketing, and more. Funding requirements should be outlined in your business plan too, if you will need to apply for financing. Detailed financial projections will also help you with your application (see below).
- Apply for any necessary financing. There are many options for financing a business venture. You might turn to personal loans, angel investors, crowd-funding, or other avenues to procure the funds you need to make your business into a reality.
- Decide how to structure your business. One of the most important decisions you will make when you are starting a business is how you will structure it. Will you make it a sole proprietorship? A partnership? A corporation? An LLC? If you will be making it a corporation, what type of corporation will you go with? There are pros and cons to each of these business structures with respect to taxes and liability. So, do your research and carefully weigh the advantages and disadvantages before deciding on a structure.
- Figure out basic branding. How will you present your business to the public? Before you can proceed much further, you will need to think about how you will brand yourself.
That includes:
• The name of your business
• A logo
• Colors, fonts, and design elements that you will use as part of your branding
This is also a good time to think about the story you want to tell about your business, and the tone you want to use in your marketing materials. - Take care of registration, tax IDs, and appropriate licensing. Now it is time to register your business with the federal and state governments. Some businesses may also need to register locally. Apply for an employer identification number (EIN) for your business. You can use it on federal tax forms. Depending on your state, you also may need to apply for a state tax ID. Do you need a business license to operate? What about permits? This will depend on the nature of the services you will provide as well as your state and locale. You will need to research to make sure that you are following all federal, state and local laws to operate.
We Can Guide You Through the Basic Steps to Start a Business
Now you know the basic steps to starting a new business. Looking for more guidance, or have other questions about running a business? Jumpstart Empire Academy can provide you with the education and resources you need to take your next steps. Please give us a call today at (559) 540-2275.