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Starting a New Business? You Need to Do These Things First!

Starting a New Business

Starting a new business can be daunting, but luckily, you can do things to help you get the ball rolling.

Planning for a business starts with knowing your idea and how you will bring it to life. Once you know your company's offering and target customers are, it's time to start building your brand with a logo, domain name, and social media presence. With estimates from SBA pointing towards around 627 000 new businesses starting in the US each year, competition is tough.

If you're an entrepreneur who loves the idea of starting something from scratch, then this guide is for you!

Create a Viable Idea and Test It

Creating a new business is a huge undertaking, but it's important to remember that you're not the first person who has done this- and there are plenty of resources out there to help you.

Before you start building your business, it's crucial to develop an idea. It isn't good enough to think "I want to offer something" without knowing what that something is. You need to do a lot of research and find out if your idea is viable and test it before investing too much time and money in it.

To find out if your idea will work:

  1. Try creating a very simple mockup of the product or service you plan on providing. This will give you an idea of whether or not people will be interested in what you're offering.
  2. If the mockup looks successful, move on and start developing your business plan.
  3. If not, take that as a sign that maybe your idea needs some reworking.

Develop A Business Plan

Being an entrepreneur is hard work. Before you can take your idea and make it a reality, you need to develop a plan.

Business plans are crucial because they help you organize your thoughts and ideas before diving headfirst into your dream. The more organized you are with your project, the easier it will be to execute on the ground level.

Many different things should go into developing a business plan for yourself. Here's an overview of what you'll need:

  • Mission Statement: This document defines why your company exists and what it wants to achieve or offer its customers.
  • Products or Services Offered: This section identifies what your company wants to sell or produce, as well as who will be the primary customer base.
  • Financial Data: This section helps identify how much capital is needed, cash flow projections, net income forecasts, cash position, etc.
  • Marketing Strategies: Marketing strategies help establish how your company will market itself in both short and long terms. It should include information about where to focus marketing efforts, social media presence, etc.

Research Your Industry

Before you start building your company, it's essential to research the industry you will be working in. Starting a business is not easy, but when you're prepared with knowledge about the industry you're entering, it can make everything seem less daunting.

You'll need to know your competition, the resources available for your company, and how to protect yourself in this line of work. The more information you have about your industry before starting, the better.

Get A Mentor

This is one of the best ways to start your new business. Get a mentor who has experience in what you are trying to do and learn from them.

A mentor helps you with the ins and outs of running a company and gives you guidance on how to build your brand. Mentors can be someone you know or someone you found through an organization like PushFar, who will help answer all your questions about starting a new business.

If you don't have anyone to advise, plenty of online resources can help approach your business idea. Try using Quora or Reddit for help!

Register Your Business

The first thing you need to do is register your business with the state. This is where your EIN will come in handy.

When you start a new business, choosing a trading name is essential. If you plan on being in any brick-and-mortar establishments or have many employees, then you'll need to get an EIN from the IRS. You can also use this number for tax purposes, banking, and accounting.

Next, be sure that your Social Security number is included in all of your paperwork and forms because this will make things go much more smoothly for you in the future.

Arrange Financing

Many people think that you magically have all the money to start when you start a business. But for most entrepreneurs, this is not true.

You might need to find different funding sources for your business, including venture-capital firms, angel investors, or even friends and family members.

But there are also other ways to make money for your business without ever needing to rely on outside investment. You may be able to borrow money from banks or apply for grants from organizations like the US Small Business Administration.

And if you're not sure where to get started with financing your new business, check out this helpful guide!

Make Your Business Legal

One of the first steps you should take when starting a new business is to research and register your name as a trade or service mark. The United States Patent and Trademark Office website has a wealth of information about the process. Still, the gist of it is this: If you want to protect your trade or service mark for your business legally, you need to register it.

It costs $250 to register a trademark, but legal fees are also associated with trademarking. Depending on how complicated your trademarking process is, you may also have to pay an attorney.

However, if you can't afford a lawyer, there are other ways around the price tag. Some websites help entrepreneurs do everything necessary for their company's legal paperwork. You can usually fill out tax forms online too!

If you're a sole proprietor, you only need your name and contact information to register with the secretary of state in your home state. And if you want to be an LLC, it'll cost around $100-200 to file.

If you've decided to form a C-Corporation, the registration will cost around $300. While a sole proprietor is just one individual who owns and operates the company, an LLC protects both the company and its members from liability for personal or corporate acts. A C-Corporation is a separate legal entity from its owners and shareholders.

Get Appropriate Insurance

Before getting your business in order, ensure you're prepared for any potential risks. The best way to do this is by obtaining the appropriate insurance.

If you were to get too many customers and couldn't keep up with demand, you would need to find ways to cope with that demand- which could lead to losses if it's too late. One way of combating that is through higher inventory on hand. However, if your company accidentally injures someone on the job, then it might be at risk for lawsuits or other unforeseen costs

The best way to safeguard against this is by purchasing liability insurance which will pay for damages should something go wrong at work or while operating a vehicle. By obtaining the right coverage, you can better protect your business and yourself from potentially costly outcomes.

Once you have put the basics in place you can then move forward with turning your idea into a viable business and get started on your entrepreneurial journey.

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