10 steps to starting a business
Successful Women
FALL 2015
In this issue:
Starting your own business takes a leap of faith; not only in yourself, but in the product or service you plan to sell. Unlike many leaps of faith, however, this one can be planned for. Which is especially important because, according to the author of “How to Succeed in Business by Really Trying,†60% of new businesses fail within the first three years. Here are some steps to take to start your business on the right foot:
Business plan and beyond
1. Identify your opportunity
The best laid business plan goes above and beyond what’s necessary. Before you open your (perhaps virtual) doors for the first time, make sure to gain experience, conduct research and learn your market inside and out. Although the finished product is important, a business plan’s real value comes from the systematic research that goes into it.
2. Understand your customer
Who will you sell your product or service to? Figuring this out early can help as you begin to grow and shape your business.
3. Create a business name
Don’t fret if you can’t find the perfect name just yet – that will come to you over time. For now, pick a working name to use. When you’re ready, register the finalized name with the appropriate government departments.
4. Find startup money
Look for government-backed loans, venture capital and research grants to get you started. Avoid burdensome commitments, like long-term leases, until you’re sure what the cash-flow and expenses of your business will be.
5. Structure your company’s ownership
Are you better at flying solo or working with a partner? Whichever you choose, find the team setup that makes the most sense for you and your business – whether it’s a sole proprietorship, partnership, Limited Liability Company (LLC), corporation, S corporation, nonprofit or cooperative. Make sure you’re ready to stick with your choice, as this can largely impact your business’s future.
Location, licenses and legalities
6. Decide where you fit in
Whether your business is brick and mortar, web-based or an in-home service, it’s important to come into the market understanding how your company can compete and establish a niche. Knowing this can help you establish the right location to build your business.
7. Get your Employer Identification Number (EIN)
This is the federal tax number that will be used to identify your business. It’s free, takes minutes to do and will allow you to keep your Social Security number private, protecting you from identity theft. This is the number you’ll use to identify your business as you get your business license, permits and insurance.
8. Cover your bases
Obtain a state tax identification number, workers’ compensation, unemployment and disability insurances. If necessary, get a certificate of resale.
Launching your business
9. Hire employees
Choose people who you not only want to work with, but who will work hard for your company.
10. Finalize your plan
Organize your finances, enlist the help of a solid bookkeeper and open a business bank account using your business name and EIN. Don’t forget to keep your financial advisor in the loop, too. Personal and professional finances go hand in hand.
Material prepared by Raymond James for use by its advisors.