More and more people are waking up to the fact that the face of corporate America has evolved. Security of employment is mostly obsolete and benefits aren’t nearly the same as they used to be and creating your own business looks more secure.
If you’re one of the vast majority of Americans looking to pursue an income from self-employment, here are seven essential steps to start your business without wasting valuable time or financial resources.
You must ensure that the career you choose is one that You Really Would Like
If you’re thinking of creating a company because you lost your job and trying to find another job, you should think about a different job search. Employ a career coach, or seek out some instruction. Beginning a business can be more difficult than obtaining an employment opportunity, so it’s worth the effort to find work in a more efficient manner in case that’s what you really want.
Consider whether you’ve got what is required to begin your business with these words The truth is that no one can advise you on what you should do (except your clients). You need to be motivated yourself willing to make many sacrifices and endure for the long haul when your company grows from beginning to maturity.
Determine the type of business You’d Like to Have
franchise or an independent company? Manufacturing or service? Brick-and-mortar or online retail? Consumer or business-to-business? There are many kinds of companies each with its advantages and disadvantages. Are you interested in working with people? Perhaps a retail store is suitable for you, but you’ll be faced with the cost of having lots in overhead (rent and utilities for instance).
Study Your Idea
The most important you should remember when you’re considering beginning a business is that it’s not an athletic event. People who rush are punished in the market more than those who wait. There are many instances of “first-mover advantage”–the concept that you can get an advantage by launching your product prior to any other competitor. However, this notion is a bit overblown, particularly for small-scale businesses. If you are not careful, you’ll be wasting valuable resources.
It’s much better to approach the problem methodically and study your idea thoroughly. Does anyone else have a similar idea? What’s the competition? Do businesses and consumers have alternative options if they can’t pick your product? Does your product actually solve an issue? Does the market demand be sufficient to sustain it in the future, and not just for a year, or two? If you’re convinced that you’ve got the best mousetrap, then you’re able to move on.
Write a Business Strategy
With the dozens of business-plan-in-a-box resources available online, there is no longer an excuse not to write (not think, write) a business plan before you launch your business. Why do you need to write a plan in the case that you are the sole person working within the company? Because it requires you to address crucial questions you can’t avoid if you want to be sure of being successful. It doesn’t need to be lengthy.
Create a one-page document If you’re not able to complete more. It should be able to answer the following questions:
- What is the objective of the company?
- Who are my clients?
- What issue does my product/service help to solve?
- Who is my main competition and what’s my product/service’s benefit?
- What price should I set my product, position it, market, and sell a product?
- Are my projections financial for my business in the coming 3-5 years?
Select the Business Structure you want to use
According to small-business CPA Michael Hanley, “The basis for tax planning is laid prior to the start of your business. Out of all choices that a business owner has to make the majority will not have the same impact as the selection of an entity.
Deciding whether to incorporate as one of the following: Sole Proprietorship, a Partnership or a conventional Corporation, or an S-Corporation as well as a Limited Liability Company (LLC) will impact the tax implications for your business.
Assemble Your Team
If your team is comprised primarily of employees, you should think more broadly. You’ll need reliable advisers, such as an attorney, tax accountant, and an insurance agent or advisor. You might want to think about hiring an experienced virtual assistant with experience in startup companies to manage the administrative duties required to launch an enterprise.
Do the paperwork
In addition to starting a company, comes a host of documentation needs that shouldn’t be ignored such as:
- Filling out the necessary permits and registrations with the state’s government. Learn from the State’s Office of Taxation website what forms you’ll have to fill out.
- If your intellectual property rights are a significant asset for your business, it’s important to safeguard them right away. Although filing for patents and trademarks costs money, it’s much more expensive to fight someone with regards to rights later on. Be sure to purchase Internet domains that could be vital to your business (.com, .net and .org at a minimum and think about .biz and others as well).
- If you are an organization owned by women or a minority could be eligible for government programs that offer startup capital.
- Get the appropriate commercial insurance before you start your business.
Last Thoughts About Starting Your Own Business
Whatever type of company you launch–selling physical items or offering services on a contract basis developing a digital product or starting a business, there will be some ups and downs.
If you’re starting a business of your own it’s crucial to establish realistic expectations in order that you don’t end up unhappy with your performance within the first few months of expanding your client base.
Make sure you research your field, gain momentum on the side prior to taking a break from your full-time job and start when you’re producing revenue for your company. You’ll then be able to grow.