Have you ever thought about starting a business? Do you find yourself coming back to that thought repeatedly? Well, if so, then this may be the article for you. Owning a business can be very rewarding as it can contribute to generational wealth, align your skills and passions, and allow you to live out your dreams, all while satisfying a need in your community. The benefits of starting a business are endless. Over 300,000 new businesses start each year. Many are first-time entrepreneurs. The next one can be you. So hop on board as we travel down the road of entrepreneurship.
Starting a business involves strategic planning, making key financial decisions, and completing a series of legal activities. While starting a business can be rewarding, getting your business off the ground can be quite the challenge, leaving many ideas buried in the dust. If you are unclear, put some careful thought into your plan before starting a business and taking on the huge responsibility of entrepreneurship.
Before you travel down that road, ask yourself:
Do you embrace challenges and change? Are you people-oriented? Do you have a knack for problem-solving? Are you good at managing stress? Are you committed to taking your business idea from concept to reality?
If you answered yes to all of these questions, entrepreneurship may be the right path for you. However, if you are still unsure where to start let me share a few pointers. Start by defining your business purpose, objectives, and values. Ensure you can answer the who, what, where, and why of doing business. Create a business checklist long before you quit your job or take out a loan. Set a timeframe to prep and plan for your business as well as a start date of when you plan to launch your business idea. In this way, you have allotted time to iron out your business concept. Determine the skills required for a sustainable business in your profession. Talk to a few business owners, especially in the industry you want to pursue to gain insight on the pros and cons of business ownership. Do not be surprised if things do not go as planned. However, stick to your plan and trust the process.
Many seasoned business owners can tell you that things rarely go as planned but it is always good to have a plan. You will have to refine your plans quite a bit. It is like creating a new dish; you want to get the recipe down to a science before you put it on the menu and present it to the world. Make sure your business idea can yield a profit. We all have different talents that we love so much we often do them for free. And, that is fine. Nevertheless, you cannot give away the store to run a successful business. This means the product or service you offer is sellable and profitable.
After putting some careful thought into your business idea and documenting your business model, think through the transition phase of taking your business idea from concept to reality. How will you fund your idea? What are the steps needed to launch? What happens after launch? When you are serious about moving forward and ready to launch do not forget to go through the ten key steps to start your small business.
Top Ten Steps to Starting a Small Business
- Test the Market to ensure your Business can compete and withstand. There are many marketing tools available to help you gather industry data. It is extremely important to conduct market research before launching your business. It allows you to identify opportunities, weaknesses, strengths, and threats. The information also helps you determine if your business concept is profitable as well, as identify your competitive advantage. You will be able to make informed decisions about whether it is the right move for you regarding timing, location, targeted clientele, pricing, how successful businesses are in the industry, how steep the competition is, and the list goes on.
- Formalize your plans into a comprehensive business plan. Your business plan will be the foundation of your business. It is a roadmap for your business structure, management, and operations. It is also useful in convincing investors and key stakeholders it is a smart choice to invest in your company. In this plan, it is important to outline your goals, strategies, financial projections, and marketing approach.
- Choose a business structure. The legal structure you choose for your business is important because it will affect your business registration requirements, how much you pay in taxes, as well as your personal liability. It is important to research the different types of legal structures and determine which is right for your business. Determine what your business legal structure will be Sole Proprietor, LLC, Partnership, S-Corp, C-Corp, etc. You can learn more about this information through IRS.gov.
- Obtain a federal and state tax ID number. Once you determine your business structure you can obtain an employer identification number (EIN). You can apply for an EIN through IRS.gov. You would need an EIN to start and grow your business. An EIN is like a social security number for your business. You will need your EIN and/or state tax ID number to open a business bank account and pay taxes.
- Make sure you register your business. It is important to register your business once you choose a business name. Registering your business makes it legal and can help protect your brand. If you are doing business under a name different from your own, you will need to register with the federal government, and maybe your state government, too.
- Open a Business Bank Account. Opening a business checking account will help solidify your business. A small business checking account can help you handle legal, tax, and day-to-day issues. Having the right registrations and paperwork ready makes it easy to open a business bank account.
- Strategies for funding your business. A solid business plan can help you figure out the amount of money you will need to launch your business. If you do not have the money on hand, do not worry. Many small business owners seek funding to start their businesses. Some entrepreneurs go for traditional funding options, while others seek nontraditional funding options. Fortunately, there are many avenues to finding the capital you need to fund your business. For more information on funding options, click on the link below.
- Choosing your business location. A good business location can set you apart in the industry. Your business location is one of the most important decisions you would make so it is important to position yourself in the right place. Whether you are setting up a brick-and-mortar business or launching an online store, the geographical location you choose could affect your taxes, legal requirements, and revenue.
- Apply for licenses and/or permits. Once you have established your business and found the perfect location, you want to identify which licenses and/or permits you will need to keep your business running smoothly and within legal compliance. The licenses and permits you need for your business will vary by industry, state, location, and other factors. It is important to review your state requirements for licenses and permits.
- Acquiring business tools that suit your business needs. Once you have done all the above, it is important to invest in the right business tools to market your business and streamline your business operations. Managing the day-to-day operations is time-consuming leaving very little time to manage the administrative part of your business. There are many business tools available that can help you better manage and assess your business marketing efforts, HR, financials, operations, and more.
There are endless benefits to starting a small business. While business ownership can be rewarding, getting your business off the ground can be challenging. It involves strategic planning, making key financial decisions, and completing a series of legal activities. Before starting a business, consider the huge responsibilities and often liabilities of becoming an entrepreneur. Be sure to do your best in researching your market to ensure your business’s success.
Our entrepreneurship team is here to help. We’ve assisted many small business owners on their path to success and have been exactly where you are today. We’d love to hear about what you’ve been up to and see how we can help.
This article was crafted by LaToyia Morgan from our Entrepreneurship Team. The Entrepreneurship Team at Communities Unlimited assists small business owners every day to grow their businesses. Entrepreneurship is more than a business plan. It’s more than a job. We see entrepreneurship as a vehicle to build a better life.
We’d love to have a conversation and get to know you, please contact us below if we can help you understand this or any other topic better.