Starting a business can be exciting and daunting at the same time. Here’s a 10-step guide to help you get started setting up your business the right way:
- Business Plan – It’s important that you define the type of product or service you will be offering. Your plan should outline your goals and how you will obtain them. You need to analyze your competition and determine what they’re doing right and what they’re doing wrong. Decide how you can improve on your competition’s weaknesses and improve on them. Also, if you plan to seek funding from a bank and/or investors, a business plan will be required.
- Identity – Your business needs an identity. Design a business logo and business cards that will represent your product or service.
- Business Entity – You should incorporate your business or form an LLC with the state. Not only will this give your business professional credibility but it will protect your personal assets from business debts and liabilities.
- Licenses and Permits – Obtain a Tax Identification Number and get the necessary licenses and permits to run your business.
- Insurance – Ask your agent about the necessary insurance for your operation. If you have employees, you will be required to obtain:
- Unemployment insurance
- Workers’ compensation
- OSHA requirements
- Accountant – It’s good practice to hire an accountant to help you with your business operations especially if you have employees. A professional accountant can help you with such things as:
- Federal tax
- State and local tax
- Self-employment tax
- Payroll tax requirements (such as FICA, federal unemployment tax, and state unemployment tax)
- Sales and use tax
- Location – Become familiar with the city zoning requirements and make sure you are not in violation of any time of your cities ordinances. Keep in mind cities have different ordinances.
- Bank Account – It is important for your business to have a bank account independent of your personal bank account. To open a business account you will need to provide the ban with details regarding your business and operations.
- Line of Credit – Once you have opened your bank account and established a relationship with your bank, be sure to apply for a business line of credit. This will allow you to keep more of your working capitol up front.
- Accounting – It’s important that you keep accurate financial records of your daily transactions. This includes accounts receivables/payables, invoices, expenses, payroll, etc.
