Are you an entrepreneur looking to start your own business? Starting your own business can be a great idea. You will be doing something you love and making a profit from it. It is also a huge undertaking and there are a number of things that you need to consider before getting started. Below you will find ten things to consider before starting your business.
1. Business Plan
This is critical. You need a written plan that lists your goals for your business. A good business plan should also include ways to achieve those goals as well as a timeline for accomplishing your goals.
Decide what type of corporation you want to form. Do you want to incorporate as a LLC, partnership, sole proprietorship? Once you have decided what entity works best for you, you need to file the appropriate paperwork with the state in which you are incorporating.
3. Understand your Product, Market and Customer Base
Know the product or service that you are selling and who the customers are for that product or service. Research so that you understand the area that you are selling in. For example, if you are selling high-end handbags then you need to know who is buying high-end handbag and where you are most likely to sell them.
Opening a boutique in a tiny town with a very small population would be a mistake. Opening a boutique in a well to do neighborhood in a major city, such as New York City, is a better recipe for success.
What costs are involved in starting your business? Costs to think about include the cost to incorporate, start-up costs, marketing costs, and product costs. Depending on your business you might need licenses or permits. You may need to pay for software or computer systems to make your business a success. If you are hiring employees you need to think about how many, what salaries will be and if you want to offer benefits.
Once you have an idea of what the costs will be, you need to decide how to fund your business. Options include funds you have saved, a small business loan and soliciting investors. You need to look into each of these options carefully to make sure that you understand each option completely. If you choose a small business loan, for example, make sure that you shop around because repayment rates vary widely.
6. Bank Account
Personal bank accounts should always be kept separate from business accounts. When setting up business bank accounts, make sure that you pick a bank that is easily accessible. Contact a number of banks to see what they have to offer that best fits the needs of your business.
7. Office Space
It is very important to think about office space and location when starting your business. If you are opening a store or a restaurant, then location is key. Things to consider include - nearby businesses (you don’t want a competitor next door) and traffic (you don’t want a location that is too remote). You might need to be near other businesses to enhance your business. For example, a lawyer who practices criminal law may want to have an office near the courthouse.
Determine the best way to advertise your business. In an increasingly digital world, you should consider creating a website and posting on social media platforms. Attend events where you can network and talk about your business. Consider giving a speech at a local event where you can promote your business.
Decide which employee roles are essential to your business and then begin the hiring process. It might be better to start off small with only a few essential employees and then add more employees as your business grows.
10. Consult a Lawyer
You want to make sure that your business succeeds. Hiring a lawyer early on before you start your business will help you succeed. A lawyer can advise you about which type of corporation you should set up and help with filling out and filing the proper paperwork. A lawyer can help you identify problems and solutions early on, before they arise. Our lawyers will work with you at an affordable rate.
Taking the time before starting a business to carefully consider each of these steps will help to make sure that your business is a success.
This article is intended to convey generally useful information only and does not constitute legal advice. Any opinions expressed are solely those of the author, not LawChamps.