More to Getting Started with a New Business
Now that you know where to start, click here for first five steps to take to get your business going.
You’re ready for phase 2, let’s review the next steps to take, steps six(6) – ten (10), to get you ready for the business of your dreams.
Step 6: Choose a Business Structure. Your small business can be a sole proprietorship, limited liability company, partnership or a corporation. The business entity you chose will impact many factors from the business name, to your liability and how you file taxes.
You may choose an initial business structure, then reevaluate and change as your business grows.
Depending on the complexity of your business, it may be worth investing in a consultation from an accountant or attorney to ensure you are making the right choice for the business now and in the future.
Step 7: Plan Your Finances, starting a business doesn’t have to require a lot of money, but it will involve some initial investment of either money or time. To ensure you will be able to cover ongoing expenses before you make a profit. Put together a spreadsheet that estimates the one-time startup costs for your business (licenses and permits, equipment, legal fees, insurance, branding, market research, inventory, trademarks, service marks, grand opening events, property leases, etc.) as well as what you anticipate you will need to keep your business running for at least 12 months (rent, utilities, marketing, advertising, production, supplies, travel expenses, employee salaries and your compensation).
Those numbers combined is the initial investment you will need.
Now that you have a rough number in mind, there are a number of ways you can fund your business, including:
- Small Business Loans
- Friends and Family
- Business Grants
- Angel Investors
You can also attempt to get your business off the ground by bootstrapping, using as little capital as necessary to start your business. You may find that a combination of the paths listed above work best. The goal here, is to work through the options and create a plan for setting up the capital you need to get your business up and running.
Step 8: Vendors, now is the time to make contact with vendors and potential supplies. Here you want to make a connection by establishing and nurturing relationships to ensure they will be ready and available as you need them. Be in contact with them often, visit their office and invite them you yours, this will make each of you comfortable that you are doing business with a reputable company.
Apply for a line of credit and keep them in the loop early on about new business, goals and special promotions. This gives them the opportunity to suggest appropriate inventory and prepare for larger orders.
Step 9: Get customers, you’re really not in business until you have someone that will pay you for your products or services. This is your PRIORITY!
Become a Master Salesman, selling is essential to business success. It’s not talked about in the business community as much as it should be, because most people feel you’re either born with sales skills or not.
Don’t believe what most people will tell you, that marketing will do all the selling. Marketing will get you leads, it’s up to you to make the sale.
Step 10: Choose Your Accounting System, accounting is “The Language of Business”, it’s the way businesses communicate. Processes and procedures are the Holy Grail for successful business operations. The accounting aspect of business isn’t easy for most people whether in business or not, but it is unavoidable. Maintaining accurate records and receipts is the cornerstone of your accounting system, this is where you will get the answers to how your business is performing, whether good or bad.
With an accounting system, you will generate financial systems that will guide you on business decisions, such as if opening a new location, adding more products or employing labor is best for the business. Here is where hiring a professional will not only save time but also save money and stress.
These are the next steps to take, to ensure your business is operating successfully.
Sincerely, LaQuitta xoxo