Steps to starting a business
Being an entrepreneur is not only an exciting feeling but it comes with a wide range of benefits too. Every person at some point of time in their life thinks about starting their own business. There are many people who succeed in their dream of owning a business while many others are unable to reach that point. Among the ones that start their business, the process of starting business is easy while for some others it is very difficult and takes in a lot of time, work and energy. It requires right planning, courage and determination to start a business. If you want to start a business of your own then you should follow the steps to starting a business.
The first step to start and run a successful business is to write a business plan. It serves as a road map and will be very helpful for the operations and success of the business. The business plan includes the start up plans and the activities that one needs to do in order to reach business target. Generally, these plans are projected 3 to 5 years ahead of time and also outline the road a company will take to reach its goal.
The second step is to get business assistance and training. Starting and running a business is no child’s play. So it is a good idea to go for some counseling sessions and training’s that will help to jump start your business and take it forward with full courage.
The third step should be choosing a business location. It is very important to choose a location with high traffic so that it becomes easier to attract prospective customers. If a business is located in a place that is not visited by people or very few of them passes by then chances are low that the business will flourish.
The fourth step is to finance your business. The first financier of a business is the businessman himself. The next options are taking loans from friends, banks or financial institutions. Venture capital and research grants are also issued to help entrepreneurs get started.
The fifth step would be to determine the legal structure of the business i.e. what kind of business will it be. It depends upon the entrepreneur what kind of business will he start – sole proprietorship, partnership, nonprofit, cooperative or Limited Liability Company (LLC).
Number six among the steps to starting a business is to register a business name with the State Government. The name of the business should be apt and catchy. A business is recognized by the name of the company and not by its entrepreneur’s name.
The next step, at number seven, is to get Tax Identification Number (TIN) from Internal Revenue Service (IRS). It is important to get TIN number as it will help to file taxes.
The eighth step to starting a business is to register for state and local taxes, disability, unemployment insurance and workers’ compensation.
The ninth step is to obtain business permits and licenses as it is required to legally run your business in the state.
The final step is to understand what your responsibilities are as an employer. One should know the legal steps that are required to hire employees.
If you follows these steps to starting a business then you will be able to successfully start business.