Congrats on taking the first step to starting a new business. What do I mean? Well, you’re here after all which means you have made the decision to start a business and deciding to start, is Step number 1. But don’t get ahead of yourself, there are still many things you need to do before you set up shop. The next step is to decide what to sell but after that the way to proceed gets a bit less clear. Here are some steps that you should take in order ensure your business will be successful.
Decide Your Legal Structure
In my opinion the first thing you should do when starting a business is to decide what legal structure your business will have. Most small businesses are either a sole proprietorship or an LLC. A sole proprietorship is preferable if you’re just looking to hit the ground running. However, if you’re looking for legal protection you want to look at an LLC. In addition another option is incorporating as a C-Corp or an S-Corp. In short C-Corps are mostly for huge companies and have double taxation and S-Corps are good for business owners that want to pay themselves and deduct FICA taxes.
Fill Out The Paper Work Before Starting a Business
This is part of starting a business that no one wants to do but it needs to be done. Be sure to check with your state and make sure you have all the proper paperwork and filings. Documents that I would recommend filling out are an operating agreement and a business registration document with the applicable state. Be sure to also register the business with the Internal Revenue Service and get an EIN number.
Decide Your Business Command Structure
This is more of a step for a partnership or a corporate company but be sure to figure out who the other people are in your company. You can’t have a team if you don’t know who the “team” actually is. Use the operating agreement preparation process to plan out your company and come up with a company structure. Assign roles amongst your business partners, that play to their strengths. The point of this exercise is to make sure everyone is on the same page on what to do.
Describe The “Typical Customer”
Who are you selling to? This is without a doubt the most important question outside of “What is my business?”. Because without customers you don’t have a business. So the first thing you should do is to figure out what the “typical customer” is. Try and be as specific as possible, like “what is their favorite activity, favorite food? What does their day look like? What do they look like? If you’re able to get incredibly specific then you can get “incredible” results and sales numbers. Not to mention that this will allow you to build a following that will reliably buy your services, or products.
Pick A Launch Date
Now that you have done the heavy lifting you get to do more heavy lifting! Just kidding, well not really, before you start a business, you need to pick a launch date. If you have an E-Commerce business this maybe at the heels of a initial marketing campaign. Speaking of which, in tandem with your launch date be sure to set up the initial marketing campaign and invoke the “typical customer” when designing the campaign. A good marketing campaign can make all the difference for you business in the early stages. Also having a good initial marketing plan can take some pressure off of your sales team, or your entire team.
In Conclusion
In summary there are many steps to accomplish when starting a business, (many of which are not listed here). From picking the name, all the way to actually launching the product. It’s a lot of work to bring your idea to fruition. Be sure to fill out all the proper paperwork and perhaps get a professional involved to ensure that you have all your ducks in a row. With great planning comes great results. If you’re looking for a low cost and qualified Certified Public Accountant to help you setup your business feel free to contact me here.