Starting a business is an
exciting process, but it's not something that should be taken lightly. When
starting your own business, there is a lot of planning to be done and many
forms to fill if you intend to go about it correctly. So much so that it's easy
to get overwhelmed by just how many options you have, but with the right
information, you can get your business off to a strong start.
The first thing you need to
start your own business is a business plan. This is an intimidating task for
most people to get involved in, but all you really need at this moment is a
piece of paper that answers the who, what, when, how, and why of your business
plan. In other words, who is going to be a part of your business?
#1 The Who
If it's just going to be you,
you'll probably opt for a single-member LLC (see the LLC forms) or even
a sole proprietorship, the latter of which requires no special registration
whatsoever. Rather, at the end of the year, you'll just report your business
related income or loss as self-employment income. A single member LLC may
function similarly as it will be disregarded as a pass-through entity. That's a
fancy way of saying you'll report the business income as self-employment income
as well in the same way you would income that results from a sole
proprietorship.
If you are going to have other
people in this business with you or if you are going to have employees, it is
worth looking into other structures. You can have a multi-member LLC, for
instance, or a corporation. In any case, with multiple people and/or employees
involved with your business, you will probably want to apply for an EIN using a
tax ID form,
which will mean your business gets its own SSN of sorts, allowing you to
separate your personal credit and finances from the business.
#2 The What
The next step in starting your
business is figuring out the what. In other words, what will you be selling or
what service will you be offering? What sets you apart from your competitors?
When thinking about this question, you are really seeking to ask: What is going
to make your business money?
You might be offering a
service, selling a product, or a combination of the two. You might also be
acting as an affiliate, promoting someone else's service. Think about what is
going to make your business money, and then continue on with your plan.
#3 The When
Figuring out the when of your
business can be effected by many different things. If it's a seasonal product
or service, you probably want to enter when the market is strong. Likewise, if
you are struggling to handle your finances right now, it might be best to wait to
start your business at a time when you have a
bit more disposable income to cover the expenses that go along with
forming a business.
Figuring out when the timing
is right for your new business is really going to depend on a lot of different
things.
#4 The Why
Why do you want to start a
business? This is a question that most people will simply answer with
"money" but it should really go far beyond that. Do you want to offer
something that no one else is? Do you want to improve upon your competitor's way
of doing business? Figure out a viable why that will inspire you to keep
working hard in your business from this day forward, because it really is a
full-time job and then some.
You have to be fully invested
in your business and the idea behind it. And, more importantly, your customers
have to have a reason for choosing your business too, and that's when you need
to ask: Why will customers want to do business with me? Maybe you have better
service or better offerings than your competitors. Above all, seek to offer
more value rather than a lower price as that's the only sustainable way to long
term success.
#5 The How
The how is going to bring
together all of the above in an easy to follow plan that you can put into
action. How are you going to make money? You have the who, the what, the when,
and the why, now you just need to make a process that you can begin following
to get you customers and ultimately begin generating profits.
With this plan drawn up, it's
time to begin getting the legal processes moving along as that's definitely one
of the more difficult and time consuming parts of launching your business. Gov Doc Filing can help
you get started with it right away so that you can put your business plan into
action.