Before you start a business, it’s important to start off on the right financial path. This process can take a little time; however careful planning and implementation can save mistakes and time down the road.
#1 Write a business plan that includes the start-up capital requirements.
- Identify the start-up expenses required and allocated capital for those requirements.
- Identify goals, both short term and long term, and created a plan to achieve those goals.
#2 Take a decision!
What type of business do you want to own? Do all the legal requirements to register your business. Choose one of these options:
- Sole proprietorship
#3 Protect your business name and file the appropriate documents.
- Register “Doing Business As” name if you are going to conduct business under a name other than the legal name you filed with the Secretary of State.
- Conduct a trademark search to ensure that your company name isn’t already being used.
#4 Create your articles of organization.
- Articles of organization are required to open a business checking account.
#5 Obtain your Federal Identification Number, EIN, from the IRS.
- An EIN is often required to open a business checking account.
#6 Open your business bank accounts.
- Open your checking account.
- Open a savings account.
- Set up an online banking system.
#7 Determine the payment processing system.
- Register for a payment processing system, i.e. PayPal.
- Link your payment processing system to your business bank accounts.
#8 Establish a system for proper accounting procedures.
- Find a system, like Quicken, to track your sales, expenses, and profits.
- Identify a source of accounting help and knowledge. (Note: Consider hiring an accountant and maybe a bookkeeper.)
#9 Start the process of establishing business credit.
- Obtain a business credit card. (Note: A business credit card helps separate professional and personal expenses and can help protect personal assets from business liabilities.)
- If needed, obtain a small business loan.
#10 Obtain the necessary business licenses and/or permit.
Research and obtain the following:
- Insurance needs
- Permit needs
- License needs
- Check for other insurance and government requirements for your business niche and local regulations.
Congratulations! Your business is now set up and you’re ready to start enjoying your efforts. It’s time to begin marketing, selling, and making money from your new business.
1 thought on “10 Things You Need to Know before Starting a Business”
Great tips for all those starting a business. Huge help! Thanks for the info!