No matter the industry you operate in, starting your own business is nothing short of a momentous decision. In addition to marking a milestone step in your career, it also goes a long way towards shaping your future. However, starting a small business from scratch is no mean feat. From getting necessary registrations to setting up your new location, you have many requirements to meet.
To make sure that you complete the process without any issues, here’s a 5 step checklist for starting a small business.
One of the first steps of launching your small business is choosing the proper structure for it. This step affects your human capital management, taxes, and liability. As a result, it stands out as a critical decision for every small business. This holds whether you are a serial entrepreneur or a first-time business owner.
You can make your selection from options such as sole proprietorship, partnership, limited liability company (LLC), and corporation. The corporation structure also has various substructures, such as non-profit corporations within it, which lets you choose an option specific to your organization.
You must write your business plan before moving forward with the most significant steps of setting up a business. From laying out your objectives to outlining your associated steps, a business plan helps clear your vision and prevents you from running into common small business mistakes.
You can start writing your business plan through various tools from reliable resources such as the Small Business Administration (SBA). Once your business plan is ready, you can arrange it with a corporate kit for optimal and professional organization. This prepares you for the rest of the steps ahead.
Any business with employees requires an Employer Identification Number (EIN) to stay on top of its tax filings. Having an EIN also opens doors to various corporate tax breaks. This allows you to acquire a business vehicle and other assets through specialized and affordable procedures.
Getting your EIN is not that difficult. You can head to the website of the Internal Revenue Service (IRS) to start the process. To avoid any issues, you should note down the details of your business’ responsible parties in a business journal beforehand. This makes it easy to gather the necessary information when it is time to register and helps you open a business account with a bank afterward.
Getting all the necessary details together can be enthralling. However, your plans may go nowhere if you are unable to support them through substantial funding. This is where you need to choose whether you are self-financing your business or seeking external support.
If you are funding your business by yourself, putting the required assets aside is a simple matter. If you seek a loan or investment, you may need to plan your route by securing relevant applications and scheduling pitch meetings. Once you have the required funding, you can store it in your business account and bring your vision to life.
The next step in starting a small business is to find a business location and start setting up your headquarters. Buying office furniture, such as office desks and computing devices, is a staple requirement, but so is purchasing any business equipment that serves as the backbone of your venture.
You should also make sure to pick a location that is beneficial for your small business. For instance, if you want to have walk-ins, your office must be easily accessible for your clientele. Similarly, if your goal is to save as many funds as possible, looking for more affordable office space is the way to go.
By keeping these tips in mind, you can fulfill the basic steps of setting up a small business. From there, you can continue to manage your venture's operations and scale it to new heights.