Did you know there are more than 28 million small businesses in the United States? There is a reason this number is so high and more people venture into starting their own business every year.
Have you been considering starting your own small business? You’re in the right place! Keep reading our guide to help you on your entrepreneur journey.
Research
First things first, you want to dive into researching first. Once you have your idea for the business you will start you will need to do some research before moving forward. Whether your business will be billing for laboratory services, accounting, bookkeeping, or anything else there are a few things you have to keep in mind to be successful.
Your business has to either solve a problem for people, offer something people need or solve a problem. During your research phase, you will have to answer questions such as:
- Who needs my business?
- Is there a need for the services or products I plan on offering?
- Who is my competition?
Take time researching the market to have a clear picture if this business idea is indeed worth moving forward with.
Finances
Depending on the business you plan on opening you will have to figure out how much of an investment you will need upfront. There are businesses that require a large investment and there are others that require very little upfront.
You want to get real with your finances and make sure that you figure out at what point you will be making a profit. One of the goals during this phase of your planning is to make sure you have enough money available to cover ongoing expenses until you are making a profit.
Take the time to write down all of your overhead expenses, travel expenses, employee salaries, etc. Once you have an overview of how much money you need you can figure out where you will get the money from.
There are always options for financing a new small business. You might do a crowdfunding campaign, use your own savings, find a finance company, look for an angel investor, or take out a small business grant.
Planning Time
This is the time to create your business plan. This plan will be a guide or a blueprint that will help keep you on track when you start your business.
There is no set length on your business plan but as a guideline – if you intend on taking out a business loan or borrowing money from an investor they will want a more traditional business plan. A traditional plan is normally longer and includes more details to help the investor feel confident about where they are putting their hard-earned money.
If you will be using your own savings a simple one-page business plan should suffice. You will use this to give you a clearer path on what your goals are and what you want to achieve with your idea.
Business Structure
The next step is figuring out your business structure which is what will affect how much you pay Uncle Sam in taxes. The different options to choose from include
- LLC – Limited Liability Company
- Corporation
- Partnership
- Sole Proprietorship
Before you can register your business with your state you will have to know what business structure you will be using. Consulting an accountant is a smart move during this step to help you make an informed decision.
Register Your Business
Now that you have your business structure chosen you can take the next step to make everything feel more real. You can register your business legally through your state. Before you register, make sure you are 100% sure that you love the business name you have chosen.
Your business name will be everywhere and will be a huge part of everything as you grow your business. Once you’re officially registered you can go ahead and register your domain online as well – that’s if you haven’t already done so.
Licenses
If your business requires any special licenses or permits, now is the time to take care of these. Every state is a bit different and you will want to make sure you are compliant in the state you registered and will be conducting business from.
This is information you should have gathered together during your research step earlier in the process. The main thing is to not find yourself in a legal situation due to not doing your homework.
Marketing
Once you are up and running it is time to start making money. There is no way a business will survive without making a profit which is where marketing comes into the picture. You will want to have a marketing plan and campaign before opening your doors.
You want to attract new clients as soon as you are up and running and you also want to have a marketing plan on keeping existing clients once you have them. In today’s digital age you will also want to have your digital marketing strategy planned out and have your social media accounts ready to go before launching.
Time to Get to Work on Starting Your Own Small Business?
Now that you have the guide on starting your own small business you can get to work. Following this guide will help you increase your chance of succeeding and not find yourself closing your doors due to a lack of research and planning.
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