There are many good reasons to start your own business from the independence it can bring to your lifestyle to the noble role you can play in creating jobs to other, helping to grow economy and many others. In fact, the hardest part about becoming an entrepreneur is figuring out where to start. Especially in today’s economic climate most probably having a small business maybe the best source of income. Whether you have some knowledge already or are going on a vague notion that this option may be for you, we hope that this checklist will be useful to start with.
Build a business plan
Having no business plan is too risky when putting a startup business or even for existing business establishment. For any start-ups, a business plan allows you to gain a better understanding of your industry structure, competitive landscape, and the capital requirements of starting a small business.. Every business plan should include something about each of this area, Mission/vision, business name, marketing plan, competitive analysis, financial plan and products and services. It can attract potential investors and secure a loan. For investors this will show whether or not your business can make a profit.
Name your business
It is as simple as it can be but naming your business is the hardest part of building a business. Business name should sounds good and at the same time should be unique so that you have an impact against your competitor but not so unique that potential customers won’t know what you’re selling. You may want to consider Mr. Webster as your best friend for this part and play around with name ideas. Once you have a few you’re happy with, test them out with family and friends. Before ordering letterhead, though, there are a few steps you’ll need to take to ensure that you legally can use the name you selected.
Choose a business structure
Four types of business structure that you can decide on; Sole proprietorship, Partnership which has 2 types, Limited and General partnership, Limited Liable Company or LLC and Corporation which has C and S corporation.
Sole Proprietorship, only one owner controls the business. This is the most common business structure available. Common proprietorship includes part-time businesses, direct sellers, new start-ups, contractors, and consultants.
Limited partnershipis limited partnership consists of at least one general partner (controls the business) and at least one limited partner (investor). And General partnership is a business owned by two or more people. Partnerships offer more freedom for business owners with shared business tasks and the potential to earn greater profits.
LLC, this is becoming more popular these days. Limited Liability Company or LLC is a type of business ownership combining several features of corporation and partnership structures Owners of a LLC have the liability protection of a corporation.
Corporationis usually the most complex and most expensive way to organize a business. Records must be kept to document decisions made by the board of directors. There are two types of corporations; C Corporations (incorporate) and S Corporations (small business). Small business is the most common corporation; C Corporation is more complicated than forming a limited liability company or a Sole proprietorship.
Set up and determine your location
Getting a location is also hard as it can be, this where your marketing strategy will fall. A good location can attract a large number business of walk-by traffic while a bad location can hide you away from potential customers. It really depends to really what kind of business you will have. There are many steps in office set up including where to locate your office (home or office space), buying the necessary office equipment, designing your work space and getting supplies. Whatever location you choose, make sure you know all of the legal restrictions on your place of business.
Get business insurance
A smart business is the one will take the necessary acts to ease the risk and one valuable risk manager is insurance. Like home insurance, business insurance protects the contents of your business against fire, theft and other losses.. In many cases, there is no requirement your business needs insurance unless you have a company automobile, employees or it’s a loan condition. Liability insurance, Property insurance, Business Interruption, Key Man, Automobile, Office and Director are some of the type of insurance that are commonly used today and are merely a starting point for evaluating the needs of your business. No business is immune to natural or man-made disasters and potential liabilities.
Create an accounting system
Accounting is by far, one of most important aspects of starting and operating a business. It’s so easy to get caught up in the start-up glamorous tasks of designing a business card or choosing a business name, yet without a solid understanding of the numbers you will not survive. The objectives of creating an account system is to organize survival in terms of sharp competition, prevent bankruptcy and other financial risks avoidance, increase in production volume, profit and wealth maximization and expenditure minimization. Without a firm grasp of your margins and cash flow, you can price yourself right out of the market.