Starting A Business - Key Steps and Elements to Consider
While choosing your business structure and forming your business are important steps when starting a business, there are some additional items and steps that should be considered and undertaken in the start-up process.
Evaluation - Give starting a business some real thought. Understand the responsibilities and the commitments that are part of having your own business, and consider how starting a business will impact your every day life. Evaluate your strengths and weaknesses as a business person, organizer and manager, before rushing ahead.
Business Ideas and Business Plan - You should fully research your business idea prior to starting your business. Once you've decided on a product/service, analyze the market (including assessing the demand) and also fully evaluate the competition. Also, consider performing a profitability assessment, a financing assessment and a legal assessment. What will you need in each of these areas to achieve your definition of success? Next, formulate all of you findings into your business plan outlining who, what, when, where and why for your business. Not having a structured business plan outlining everything from the pricing for your service, how you will market it, where you will operate and what types of computer systems you will run is a common start-up mistake made by too many business owners.
Choosing Your Business Structure and Incorporating - Incorporating your business in an important step. One of the primary benefits of incorporation is that it helps to protect the owners' personal assets from the debts and liabilities of the business. However, in certain cases, forming a corporation or limited liability company may not be the best option. Take the time to fully understand the pros and cons of the different types of business entities - sole proprietorship, partnership, c corporation, s corporation and limited liability company. That will help you make an informed decision regarding what is best for your business.
Financing - Prior to starting your business, you should address financing your business. Some businesses require less start-up and operating capital than others. For example, starting an Internet-based business requires less financing and tools than starting a restaurant. Do you have the capital absorb the start up costs and to run your business until it brings in enough money on its own? If not, you should research the options of obtaining loans from banks, venture capital funding or loans from friends and family. Each option has its advantages and disadvantages.
Protecting Your Business and Your Ideas - Prior to beginning operations, you should also consider items such as business insurance and protecting your intellectual property. Incorporating a business helps to protect your personal assets, but business insurance should not be overlooked. Check with multiple providers for quotes on policies that best fit your needs. Also, be sure to research items such as trademarks, patents and copyrights. Prior to naming your product/service or even your business, it is always a sound idea to search for existing trademarks or service marks on those names. Discovering before you begin using these names whether another business has trademarked them can help prevent future headaches and possible legal action.
Establishing a Web Presence - If you plan to have an Internet presence for your business, registering a domain name sooner, rather than later, is always advisable. A strong domain name can assist in the marketing of your business. Also, there is value in having a more simplistic domain name. While your company name may be Bob's Detailing and Painting Professionals, having a domain name such as www.bobsdetailingandpainting.com is going to be difficult to remember and time consuming for your customers to type. Search for available domain names that still address the focus or your business or your offerings, but is also marketable.
Starting Operations - There are a number of factors to consider before starting your operations. Where are you going to operate - from home, from an office? Do you need to lease office space for your new venture? When do you plan to open your business and are there any special events happening around that time that will positively or negatively effect your opening? Do you need to require any licenses or permits to operate your business? How do you plan to market your business - advertising, word of mouth, Internet search engines, etc.? How much are you willing to spend on your marketing efforts? Do you need employees when you open? For your industry, what is the best way to find qualified employees? It is also helpful to research the pay range for employees in similar industries or positions. Before trying to hire someone, you should know not only what you can afford to pay, but also what the fair market value for those skills is.
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