10 Things To Do When Starting A New Business
Come Up With A Plan
Do this to the last minimal detail. Describe what the business is, what it sells, and what makes it different than the competition. Draw up a marketing plan and analyze what the trend is to get on the right foot. Write up an executive summary, which is a summary of the entire business plan and its goals.
Proper Training & Assistance
Learn how to promote the product online and how to handle customer service. Knowing what the customer wants is extremely important in how effective the product is sold. (“The customer is not a moron. She’s your wife.”) Learn about IT, handling the resources, and how to prevent any fraud from taking place.
Location, Location, Location
This is where owners look at the demographics. Is this the population worth going for? Find the other competitors – how are they doing? What about the building – is the rent rate affordable? Is it in a safe place? Take note of everything because location matters.
Money, Money, Money
This is about financing the business. Make sure the credit rating is good enough to get a business loan from the banks. Sign up for financial assistance programs designed for small businesses to help fund key areas. Maybe, there’s a venture program.
What Is The Structure Of The Business?
There are different kinds of structures. First, there is the sole proprietorship, where it’s just one person responsible for everything. The LLC provides the limited liability features of a corporation, as well as the tax proficiencies and flexibility of any partnership. Corporations and a cooperative are two other business structures.
The Business Name
Naming the business is an important exercise, but if the name of the business is anything besides a personal name, it will need to be registered. It’s called Doing Business As (DBA). The legal name of the business is necessary on all government forms, including tax IDs, licenses, and permits.
State & Local Taxes
Sometimes, business owners don’t know or understand what the local taxes are. Determine what federal, state, and local taxes need to be paid in relation to the business. There may be deductibles that the business could be eligible for.
License & Permits
To run a legal business, there are federal and state licenses/permits that has to be obtained. Certain businesses, such as those who sell alcohol, guns, and marijuana, require a federal license. Be aware of any hidden state permit as well.
Knowing What The Employer Can Do
Here is where the workers’ rights come in and what the boss can and cannot do. There are laws regarding this as well. Before hiring, owners need to get an employment identification number (EIN). In accordance with IRS rules, keep records of employment taxes. Employers must also verify an employee's eligibility to work in the United States if they are not citizens. All businesses must also have workers' compensation coverage in the event of illness of work-related injury.
Getting Local Support
It can’t be done alone. Besides economic assistance, get advice on how to keep a business going and what to do if in trouble.