Easy steps to start a business

It is a dream of many to be their boss. Working on a customized schedule, making decisions yourself, and not having a superior to answer are all pros of having your very own business. Honestly, starting a business is not as easy as it may sound. It takes tireless efforts, constant hard work, and a lot of bumps. However, this doesn’t mean that you shouldn’t try to start and establish your business. You should aim high and work to reach your goal. Just take the proper route and follow the key steps to minimize the hardships.

Let’s walk you through 10 steps of starting a business.

1. Carry out market research

Once you have an idea, the first and foremost thing to do is to conduct market research. You will get a clear understanding of how desired your product or service is. A few elements you will learn from market research are Demand Market size Economic indicators Location Market saturation Pricing You will learn about your potential customers and your existing competition. Once you know your competitors, you can then work towards gaining a competitive advantage over them. A few factors that you should study while analyzing the competition are: Market share Strengths and weaknesses Opportunities Barriers Indirect rivals

2. Write your business plan

A business plan is the building block of business. It is a guide for you to start a business, and it navigates you through the next steps. You will be relying on the business plan to structure, operate, and grow your business. Your business plans should meet your requirements and needs. There are two main types of business plans: Traditional You can write a traditional plan that explains each aspect in detail. Lean start-up Such a plan only focuses on the important elements. Hence, it takes less time to write. The general format of a business plan is as follows: Executive summary Company Description Market analysis Organization and management Service or product line Marketing and sales Funding request (If you plan to show the business plan to potential investors) Final projections Appendix Key benefit of a business plan: Other than helping your business to be successful, a business plan also can be a magnet for investors. If it is well-written and properly structured, investors would like to trust their money with you. If you take care of the digits in the plan, along with the overall sense, people will see that they can get a valuable return on investment.

3. Fund your business

First and foremost, you need to know how much funding your business will need initially. Once you determine the start-up amount you need, it’s time to figure out how you will get the funds.3 ways to fund your business are • Self-funding • Investors • Loans As we mentioned earlier, to get investors on board, you need to have a well-crafted business plan that will convince the investors to invest in your business.

4. Pick a location for your business

You can choose to have a physical office or building for your business, or you can launch an online store. Regardless of what you select between these two, the decisions you make location-wise can affect the taxes, legalities, and requirements. The decision of the location should cater to the following factors: Target market Business partners Personal preferences Costs Benefits Restrictions Zoning laws Taxes Make sure you research the best location to start your business.

5. Select a business structure

It is vital to choose an efficient business structure as this choice will have an effect on your taxes and operations. It will also determine what you have at stake. You need to properly think about this choice because the business structure will be responsible for providing you with legal protections and benefits. A few types of business structures that are commonly used are: Sole proprietorship Partnership Limited liability company (LLC) Corporation Cooperative

6. Choose a name for your business

To select a name for your business, you should put in your creativity along with conducting market research. The name you choose should be unique yet catchy. That name should also represent your brand’s identity. Once you have chosen the name, you should get it registered to protect it. There are a few different kinds of registrations, and those all are legally independent. Four ways to register your business name are: Entity name Trademark Doing Business As (DBA) name Domain name

7. Register your business

You shouldn’t delay making your business official and protecting your brand. You should make it a legal entity as soon as possible. The location of your business and its structure will be the determining factors of how you need to register your business. Commonly, registering your business is similar to registering your business’s name. Registering your business may not be mandatory in all cases, but it gives you legal and tax benefits along with personal liability protection.

8. Get tax IDs

The employer ID is important to start and grow your business. The employer ID is also known as a federal tax ID. Some, if not all, states require you to get a state tax ID for your business. Some of the purposes that you will need the federal tax ID for are: Paying federal taxes Hiring employees Opening a bank account Applying for licenses and permits

9. Apply for licenses and permits

You will probably need licenses and permits from federal and state agencies. The fees, however, vary as it depends on your business location, activities, and government rules. A federal license and permits are needed if your business is regulated by a federal agency. State licenses and permits are needed based on the activities of your business and the location.

10. Open a business bank account

A designated bank account will help you keep tax and legal matters organized. A business bank account also offers benefits to your employees and customers. A few advantages of a business bank account are: • Protection • Professionalism • Preparedness • Purchasing power