by Martin Vivek
Starting your own business is exciting. Putting your dream in action, ideas down on paper and out for the world to see can be challenging. Becoming an entrepreneur can hold some difficulties. You must be prepared for hard work, planning every aspect of the business and how it will become profitable, meticulous organization, and strong dedication.
To become a successful entrepreneur you need to possess certain skills, to be independent, creative and more than willing to take risks in order to see the rewards of your business. Many entrepreneurs who have found success in starting their own businesses have a strong support system and business mentors that will help provide them with insight and guide them along the road to success.
To fully be prepared to begin your venture into entrepreneurship you must be well informed and be aware of the many aspects of starting your own business. Your success in business will come from your preparation, organization and determination. Here are some helpful tips you can use when starting up your own business.
Put it Down on Paper – Start Your Business Plan
Getting your ideas down on paper are very important when starting a business. You are creating a pathway for your businesses success, setting up a course of action to follow. The objective of your business is to grow revenue, this is typically done in a three to five year plan. Creating a summary of your business’s purpose and objectives will paint a picture of what your business is and how it will become profitable, clarifying your businesses profile and expressing all goals. By creating your business plan you will be able to find the best management techniques and fully organize the structure of your business. You will be able to show what makes your business different and what services or products will it provide.
What Business Structure Will Your New Business Be?
It is important to be aware of the in’s and out’s of each business structure when making your choice. The structure of your business will determine your legal and tax responsibilities and implications. Based on your business plan you will be able to determine which business structure will work best for you. Types of business structures include sole proprietorships, limited liability company (LLC), partnership, corporations, and S Corporations. The most common form of business structure is sole proprietorship.Each of these business structures have their own unique advantages and disadvantages.
Naming and Registering Your Business
Choosing the name of your business is an important step. Your business name is its identification and will set it apart from other businesses within your industry. Choosing a unique name that will appeal to you targeted market is important.
Once you have chosen your business name it is time to check if there are any existing trademarks on it. With no current trade marks on your chosen name you can then apply for trademark protection to prevent trademark infringement. Followed by registering your “Doing Business As” (DBA) name with the appropriate state and local offices. Corporations, nonprofit organizations, LLCs, and partnerships also have to register their business with their state government as well.
Meeting Your Businesses Financial Needs
For most new business owners their personal savings is not enough to cover the financial needs involved with starting a business. It is important to not get over your head financially and be fully aware of your businesses financial needs and what financing options are available to you. This is done with a simple estimation of your businesses start up costs. You will then be able to determine just how much seed money you will need for purchases and other costs that will be ongoing within your business such as rent, insurance, utilities, inventory, sales and shipping costs.
It is important to be aware of your businesses coming and going financials, a cash flow analysis will help you do so. The everyday operations of your business will be affected by your cash flow as well as your loan eligibility. You will be able to determine when you will see profit by a break even analysis. You will also be able to determine if your will will have to borrow money to cover your businesses financial needs at that time.
When it comes to financing your business it is important to explore all of your businesses loan and grant options. The Small Business Administration (SBA) offers a wide variety of loans to help small businesses, both new and old. Local banks and other lending institutions offer these SBA loans to businesses. You can also find low interest loans through state and local agencies as well as nonprofit organizations. Unfortunately the federal government does not provide any grants for starting or expanding small businesses.
When choosing your business structure you will be given set guidelines for how you must file and pay your businesses taxes. When establishing your business you will file for a federal business tax ID. You will then need to find out the federal and state tax obligations for your business before your tax year begins.
Choose a Location, Purchase Equipment, Hire Employees
Finding the right location for you business is important. Knowing your locations zoning laws and regulations will help you in determining if the location is right for your new business. Next you need to determine what equipment you will need in starting your business and to keep it running efficiently. Leasing equipment is a option chosen by many business owners. Loans are also a great option.Government surplus purchasing is another option to consider because it will keep things easy and affordable for your business. Then it is time to hire employees, how many you will need and what their responsibilities and tasks will be. You will then be required to set up records for withholding taxes and obtain worker’s compensation insurance to protect yourself and your workers.
For more information on starting your own business visit Factoring.net where you will find a wide variety of business advice and resources.