Starting your first business involves completing a specific set of financial and legal tasks before you can get the business up and running. This article outlines the steps you need to take to start your first business the proper way.
1. Research Your Target Market
It doesn’t matter what you’re selling; if nobody is buying it, then you don’t have a business. You need to make sure to conduct research on your market to make sure it is worth the time and effort to even open a business in that niche.
2. Create Your Business Plan
Other than research, your business plan is the most important part of your business. It is the cement with which everything else is held together.
3. Raise Capital
Most businesses, except for a few types of service-based businesses, need money to start. There are a lot of ways to raise capital for small businesses, and you just have to be diligent enough to pursue them.
4. Choose Office Location
If you are a physical business, this decision is way more strategic than if you were an online business. However, either way, you need to either choose an office location or a URL.
5. Choose What Type of Business
Do you want a sole proprietorship or a partnership? The differences can be huge as the revenue increases. Conduct some research into the nuances of each type of business before you choose or seek legal advice.
6. Name Your Company
Choose a business name that’s catchy and unique. Remember, it should represent what you’re trying to accomplish.
7. Register With Uncle Sam
Once you have the name of your business, it’s time to make it official and register with the federal government. You can usually do this online for a fee.
8. Request Tax Numbers
After registering your business, they’ll give you tax ID numbers, which will let you do a bunch of things on behalf of your business.
9. Apply for Any Licenses
Be sure to get any licenses or permits to stay compliant with local, state, and federal laws.
10. Get A Bank Account
Finally, you have enough credentials to open a business bank account and even look into opening lines of credit for your business.
Be sure to reevaluate your business plan every six months and see if anything needs to be adjusted. You are now open for business!