Is your roadmap to making your business plan a reality by teaching you how to build a successful business from the ground up. This book will cover all the issues that are important to you as you consider starting or moving forward with an existing small business. Creating a new business is not just about the idea, it is also about what steps need to be taken post-idea to make sure the idea becomes profitable and scalable. Therefore, this guide will provide you with all the required information to do so.
Write a Business Plan
Writing a business plan is important for any new business because it helps keep everybody on the same page and offers you a basis for making important decisions. It also serves as proof that you have done all of your homework before launching your company, which can be very important when applying for financing. While writing this document, someone had to compile unique selling proposition (USP), value proposition (VP), target market, and the company’s go-to-market strategy. A USP is essentially what makes your service or product different from the others out there, while a VP describes how your service or product will make some aspect of their life better. Similarly, a target market is the group of individuals you are attempting to sell to while a go-to-market strategy defines how you plan to make sales.
Business Registration
Regardless of which state you choose to form your business in, the first step is determining how to properly register it. The sign-up process can appear to be a daunting task for first-time founders. Fortunately, all states have online systems for registering your new business so you haven’t got to waste time getting to the office. When registering your business for the first time, as advised by business professionals from Sleek Tech Pte Ltd, you should consider hiring legal counsel to help you through this step. Whether it is your first time or your tenth time, having an expert guide you through the process can help you avoid any issues that could impact your business in the future.
Building Your Business Structure
Once your business is registered, it is time to decide what type of entity you want and then proceed with establishing that type of entity. There are several types of entities including companies, limited liability company (LLC), partnerships, sole proprietorships, and non-profit organizations. Each type offers distinct benefits for several types of businesses, so there isn’t any one-size-fits-all solution that you should choose. For most entrepreneurs, an LLC or company is the most common type because it offers personal asset protection for owners and provides tax advantages. Many business professionals believe that a small business should first start as a sole proprietorship or partnership and then convert to an LLC or company as the business begins to grow.
EI number
In order for your business to hire employees and open a bank account, it requires an Employer Identification Number (EIN), also known as a Federal Tax Identification Number. If you plan to remain as a sole proprietor or partnership, this number will be allotted by your Secretary of State during the registration process or can be requested at any time thereafter from the IRS website. Also, if you plan to incorporate your businesses, you must obtain an EIN to be recognized by the IRS. When applying online, you’ll find that there’s a fee related to requesting one. If this is the case, then you should opt to receive your number by regular mail as it only costs $4 if requested that way.
Financing
While some start-up costs can be covered by personal savings, most entrepreneurs will need to get a business loan to cover the rest. As with any loan, you must provide a certain quantity of collateral for your application to be approved. This normally comes in the form of physical assets such as real estate or vehicle certificates, but you can even offer intangible assets if they’re easier for you to part with (eg intellectual property). In addition, lenders will most likely ask someone with good credit to sign off on your loan and may even perform a complete examination of your finances (i.e. a tax return) to determine whether or not you’re a viable candidate.
Business Insurance
Having the right insurance for your business is essential. Not only will this protect your company from lawsuits and other unexpected circumstances, but you also need to be sure that all your staff are protected as well. If someone gets injured on your premises or the product is damaged in a fire or weather-related incident, having sufficient protection can help cover all those costs. It is suggested that each business owner speak to an insurance agent before starting their new business so they know precisely what types of risks they’re taking on and how much coverage they should have.
As you can see, it is essential to familiarize yourself with the steps involved in starting a business and what to expect going forward. While every business is different and requires a distinctive approach, this guide will provide you with a solid foundation on which to build your company.
