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The Advisor
Starting
A Business: One, Two, Three ...
One of the most common questions we are asked is what are the steps
required to startup a small or home-based business. The answer is different
in varying degrees for each specific instance. However, there are some
common items that everyone needs to be aware of. Let's do it by the numbers.
1. Assess your own qualities. Make certain you will be able to take
on the responsibility of starting and operating a small business.
2. Decide if you are going to start your own business; purchase an existing
business, or invest in a franchise. We'll assume that you are starting
your own but if you select the other options ensure that you investigate
carefully.
3. Choose your business wisely - your success will be directly proportional
to how much you love what you will be doing! Anyone with a skill or a
hobby probably can turn it into a business. There are thousands of possibilities.
Here are a few …
4. Take time to investigate the potential of the product or service you are considering. Where are the customers? 5. Choose the legal structure of the business: Sole proprietorship, corporation, partnership, LLC? 99% of you will choose sole proprietorship because it is quick and easy. [Caution: It is a good idea to discuss what the best form for your business might be with an attorney]. Just remember that as a sole proprietorship, you are personally liable for all debts of the business. 6. Check with your local courthouse for what is required for a business license and if any zoning restrictions apply to you. Visit STATE INFO to find local contact information for your State. (You may also be required to register for a "fictitious name" if the name of your business is something other than your own legal name). 7. If you will be re-selling products, apply for a sales tax permit. This will allow you to purchase for resale (and not pay sales tax) and provide you with forms for reporting sales tax income from sales. Do this at your local government or tax office. 8. Talk with an insurance agent about liability insurance for your business. Any personal insurance policies you may have might not cover a business-related event. 9. Carefully assess the start-up costs for your business. Do this by writing a brief strategic plan for your business. "The Small Business Start-Up Guide" has details on strategic planning. Remember, in many cases, you may not see any profit for an entire year. Ensure you have adequate capital. If possible, consider starting your business as a part time venture while keeping your present "day job." 10. Start marketing immediately. A web site can be a powerful tool for your business.
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