How to start a business? Is the primary question that arises in every upcoming entrepreneur’s mind when they plan on starting a business. There’s a huge bowl of choices, thousands of businesses you could started get started with.
Even though there is a land of huge opportunities and possibilities, still there are a few fundamental steps that you need follow before starting or setting up a business.
Also Read: No Pain, No Gain
How To Start A Business Step 1: Conduct A Firm Market Research
The initial important stride is to research your potential market/ target audience. Who is looking out for products/ services that you have in your offerings? Is there any scope for your product or service in the existing market or is the market saturated? Is the market local, national or international? These are some of the vital questions that need to be answered even before you start brainstorming about how to start a business.
How To Start A Business Step 2: Show Me The Money
Capital is the oxygen of any business. You can’t initiate a business empty pockets. Scrutinize what you have, what you will require and how do you plan to attain it. If you strategize to pursue investor funding or financing, get a pen and paper and start writing a business plan and practice your pitch. Analyze the costs associated with your business. Understand how much capital you’ll need and explore sources where it could come from.
How To Start A Business Step 3: Hire An Accountant
Its very essential to have an accountant for your business to enter proper records in the books of accounts. An accountant will work in collaboration with your attorney and be instrumental in judging the best form of ownership. An accountant can also aid you to establish bookkeeping and other record keeping procedures that can keep you on track for years. Most vital point, a good accountant will help with tax planning as well.
How To Start A Business Step 4: Business Structure
It’s up to you what sort of business structure interests you the most, but also take into your calculations “Which business structure would yield maximum benefits? ”. The options are sole proprietorship, partnership, corporation, corporation or limited liability corporation (LLC). There is a colossal difference when it comes to Personal liability, taxes, paperwork and regulations amongst the unique legal business structures. Your attorney and accountant will play a vital role in assisting you in this crucial decision making.
How To Start A Business Step 5: Licenses And Permits
Along with a business license, you might require to have an additional license banking on the category of business and local laws. You may need licenses to manufacture and/or sell specific products such as liquor, firearms, etc. Research all licenses applicable in your state. It’s also extremely crucial to know the zoning laws before you initiate a business. Don’t assume the zoning laws don’t apply to you.
There are definitely other critical steps to getting a business off the ground, such as finding a technical expert and launching a website (a must in today’s competitive market). However, if you’ve taken the steps above, you will find yourself in a confident, business-ready position.