Starting a new business is a grand entry into the world of commerce and an exciting time for everyone involved. Unfortunately, though, along with the thrill of starting something new, there is hard work, and a fair number of responsibilities to be shouldered.
Any tips or tricks a start-up venture can use to make things easier should be embraced with enthusiasm.
A few start-up steps that might help you if you’re starting your own business venture:
- Plan well! Whatever your services are, you need to confident that you have the right staff, the appropriate product range and availability, and you need to have established through research what would be a good time to start. In addition, you need to have thought carefully about the location of your business. Every new venture should have a thoroughly researched, carefully organized, and professionally-presented business plan. Also, the operating procedures, competition market study, your goals of business and the creation of funds need to be discussed and arranged before the business starts. If your company is planning to get a loan for establishing the business, careful research and planning is necessary for seeking a traditional loan, or funds from venture capitalists.
- Form a corporation or an LLC! If you’d rather not be personally liable for any debts incurred by your business, you may benefit from forming a corporation or LLC. For other kinds of business (sole proprietorship, partnerships) the owners’ possessions (house, car etc.) are at risk if they default on loans, or can’t pay creditors at any point. An LLC or corporation, however, safeguards the owners’ own assets so they can’t be seized to pay off outstanding bills. An LLC also helps you gain credibility with potential customers, suppliers and partners. In addition, you can enjoy certain tax benefits with your LLC or corporation, and online services can guide you through the legalities of setting either of these up.
- Secure a federal tax identification number or the state tax identification number! The Internal Revenue Service will you a federal identification number or Employer Identification Number (EIN). It’s very important as it guarantees social security in your business, which is especially important in corporations and LLCs that have a number of employees. Your all taxation matters will be dealt through this EIN. From your state taxation department, inquire about the necessity of getting a state tax identification number for your type of business.
- Hire an accountant and an attorney! During the daily running of any business, these two kinds of individuals can be of immense help. Before starting up your business, select a good lawyer and an accountant who can help you through thick and thin. Investment in these areas now will undoubtedly pay dividends later! They can guide you through problems, advise you on cost-cutting and time-saving loopholes, and make sure you don’t inadvertently break the law.
- Get a business bank accounts! It’s vital that your personal finances don’t become entangled with those of the business. One of way of making sure this doesn’t happen is by establishing two different accounts. A specialized business bank account is an ideal solution for financial transactions involving your business. The information regarding the type of the industry, starting date and the names and addresses of the owners are required to open the business account, which will then offer you certain specialized services tailor-made to business rather than personal financial activity. Corporations and LLCs tend to get accounts without undue hassle, as they have more credibility and bank managers trust them to a greater extent than they do individuals. In fact, especially in US cities, an LLC seal is often mandatory.
- Raise funds! Look for a loan that suits your kind of business. There are so many different loan programs by different kinds of financial institutions and information about these is readily available online.
- Get the required licenses and permits to legalize your business! Check with your local governing bodies what the requirements are for your business in terms of paperwork and permits. Failing to do this properly can get you into an enormous amount of trouble, because not having the correct permits is illegal. It’s a common mistake many new businesses make, and in the end, they pay dearly for it.
- Insure your business! After a detailed discussion with your insurance agent, try to gather all necessary pre-requisites and documents for obtaining insurance that will safeguard your business against many kinds of unforeseen accidents, damage, or other potentially expensive situations.
- Check about other insurance requirements! If your business has employees, it may require certain other types of insurance. Inquire about unemployment insurance, workers’ compensation, federal tax, self-employment tax, sales tax etc.
- Enjoy the process! If you put some planning into your business, you’re more likely to be able to relax and enjoy the fruits of your labor later.
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