How To Start a Business:
8 Simple Steps to Start Your Business
by Lisa Phillips
8 Simple Steps to Start Your Business
by Lisa Phillips
America thrives on entrepreneurs. Just
about anyone can start a business with
little to no start-up capital.
It will take a lot of hard work and
dedication so it is advisable that you do
something you are passionate about or
at least something you don't mind
spending time nurturing and growing.
about anyone can start a business with
little to no start-up capital.
It will take a lot of hard work and
dedication so it is advisable that you do
something you are passionate about or
at least something you don't mind
spending time nurturing and growing.
Step One
Calculate how much available capital you'll use to start your small business.
The more money you have, the wider your options for the type of small
business you can start. Consider getting a business loan or begin to build
business credit to finance your business start-up.
Step Two
Select the type of small business you want to start. Start with something you
are passionate about or at least interested in. The possibilities are virtually
endless. See business ideas for start-ups under $500.00.
Step Three
Research the field you are entering. The Internet has made it very simple to
perform research. There is lots of free information that will aid you in your
task. Examine the field, find your competitors and see how their business is
structured. Marketing is key for any small business. Brainstorm ways you can
market your business and create a niche in your chosen area.
Step Four
Prepare a Business Plan or Plan of Action. Writing a business plan can be a
daunting task. If you are planning to apply for a small business loan, having a
business plan is helpful. However, not everyone is prepared to write a full plan
and many successful businesses have started without a complete business
plan. If writing a business plan is not something you wish to do, at least take
time to write a simple Plan of Action. Your plan of action should include your
financing needs, marketing ideas and step by step action to take you to your
goal of starting a functioning small business.
Step Five
Determine how you will structure your business. Choose between a sole
proprietorship, partnership, corporation or LLC. Each type of structure has
different rules and liabilities. The simplest structure is a sole proprietorship
and if you have no employees there is no need to become a corporation right
away. It's easy to upgrade your business to a corporation down the road.
However, if you have employees or plan to sell a product that may trigger a
lawsuit, you might want to consider incorporating sooner than later. See
How to Structure Your Business
Step Six
Apply for an EIN (Employee Identification Number). You may obtain an EIN
from the IRS online. (www.irs.gov). The application is real simple and takes
about 5 minutes. As a sole proprietor you may apply or if you are a
corporation any officer may apply. You'll receive it immediately.
Step Seven
Get your business license. For certain types of businesses, you must file for a
license. The Small Business Administration website can tell you if you need a
business license for your chosen type of business. Once you are licensed,
you can begin conducting business.
Step Eight
Open a Business Checking Account. It’s best to have a separate account for
all business transactions. If you are not a corporation, tell your bank you want
to set up a DBA (Doing Business As) account or they may not deposit checks
made out to your business name. Get your business name on your checks. A
basic business checking account should not cost you over $10.00 a month.
This gives your business a professional look and allows you to begin to
establish a relationship with your bank for possible future financing.
Step Nine
Register you Business Name. When starting a new business always register
your business name, even if it's a home-based business. If you decide to
incorporate, your business name will be registered in accordance with your
State's incorporating requirements. If you structure your business as a sole
proprietor register your business in the appropriate county or province.
Registering your business is a very important initial step in starting a
business. It not only allows you to see if someone else has registered a
business in that name, but also enables you to open a business checking
account.
Calculate how much available capital you'll use to start your small business.
The more money you have, the wider your options for the type of small
business you can start. Consider getting a business loan or begin to build
business credit to finance your business start-up.
Step Two
Select the type of small business you want to start. Start with something you
are passionate about or at least interested in. The possibilities are virtually
endless. See business ideas for start-ups under $500.00.
Step Three
Research the field you are entering. The Internet has made it very simple to
perform research. There is lots of free information that will aid you in your
task. Examine the field, find your competitors and see how their business is
structured. Marketing is key for any small business. Brainstorm ways you can
market your business and create a niche in your chosen area.
Step Four
Prepare a Business Plan or Plan of Action. Writing a business plan can be a
daunting task. If you are planning to apply for a small business loan, having a
business plan is helpful. However, not everyone is prepared to write a full plan
and many successful businesses have started without a complete business
plan. If writing a business plan is not something you wish to do, at least take
time to write a simple Plan of Action. Your plan of action should include your
financing needs, marketing ideas and step by step action to take you to your
goal of starting a functioning small business.
Step Five
Determine how you will structure your business. Choose between a sole
proprietorship, partnership, corporation or LLC. Each type of structure has
different rules and liabilities. The simplest structure is a sole proprietorship
and if you have no employees there is no need to become a corporation right
away. It's easy to upgrade your business to a corporation down the road.
However, if you have employees or plan to sell a product that may trigger a
lawsuit, you might want to consider incorporating sooner than later. See
How to Structure Your Business
Step Six
Apply for an EIN (Employee Identification Number). You may obtain an EIN
from the IRS online. (www.irs.gov). The application is real simple and takes
about 5 minutes. As a sole proprietor you may apply or if you are a
corporation any officer may apply. You'll receive it immediately.
Step Seven
Get your business license. For certain types of businesses, you must file for a
license. The Small Business Administration website can tell you if you need a
business license for your chosen type of business. Once you are licensed,
you can begin conducting business.
Step Eight
Open a Business Checking Account. It’s best to have a separate account for
all business transactions. If you are not a corporation, tell your bank you want
to set up a DBA (Doing Business As) account or they may not deposit checks
made out to your business name. Get your business name on your checks. A
basic business checking account should not cost you over $10.00 a month.
This gives your business a professional look and allows you to begin to
establish a relationship with your bank for possible future financing.
Step Nine
Register you Business Name. When starting a new business always register
your business name, even if it's a home-based business. If you decide to
incorporate, your business name will be registered in accordance with your
State's incorporating requirements. If you structure your business as a sole
proprietor register your business in the appropriate county or province.
Registering your business is a very important initial step in starting a
business. It not only allows you to see if someone else has registered a
business in that name, but also enables you to open a business checking
account.
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Links
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Do you need just a little cash
to grow your business try a
microloan from the SBA.
Business Loan Sources
A little creativity and al lot of
determination can get you the
money you need.
Home-based business
opportunities. Earn extra
income from your computer.
Bad Credit Business Loans
Find alternative funding
sources if you have bad credit.
Micro Business Loans
Do you need just a little cash
to grow your business try a
microloan from the SBA.
Business Loan Sources
A little creativity and al lot of
determination can get you the
money you need.
Business Credit
How to Build Business Credit
Separate from Your Personal
Credit in 10 Steps
How to Build Business Credit
Separate from Your Personal
Credit in 10 Steps
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