Starting a new business always seems like a great idea, but many new business owners forgo following the proper steps to start the business. In order to give your new business the best possibility of success, consider following these steps and reach out to a consultant if you are confused about anything along the way. Brainstorming a business idea, deciding on a business structure, registering with agencies, obtaining capital, creating a marketing plan, and planning for long-term growth are all necessary steps for your new business.
Before you can legally form your business, you need to have a general idea of the purpose of the business. Consider what products or services you want to sell and be sure there is market demand. Write down any ideas that pop into your head and narrow down the results. Part of the brainstorming process includes coming up with a business name and the general path you will take to get your business going.
After you have settled on a business idea, it’s time to consider business structure. If you are going to be the sole owner of the business, you can either file as a sole proprietor or single-member LLC. However, if you want to bring on another partner, you will need to set up a partnership or corporation and file a business return each year.
When it comes time to register with federal and state agencies, you will need the information from the prior two steps. Filing with your state government includes registering your business name and outlining the capital structure. You can request a separate EIN from the IRS; however, this is not necessary for sole proprietors, and single-member LLCs as the business income will be reported on your individual return.
Businesses can be expensive to startup, which is where bringing on an additional partner or searching for other funding methods comes in. Many entrepreneurs are successful in securing capital from angel investors, venture capitalists, family, friends, private investors, and financial institutions. Create a business plan that clearly lays out the capital needed to get started and search around for the right investor.
After all the backend work is time, it’s time to attract customers and start making money. Analyze your target demographic to understand what forms of social media they are using. Then, carefully craft an advertising campaign for them to get the word out about your new business. Be sure to include links to your website for easy contact.
As your business begins to generate revenue, you will need to plan for long-term growth. Consulting with Divocate can help you navigate this section. Long-term growth planning includes strategies to optimize business profit, what to do with excess profits, expanding into new markets and overall business best practices. Building a relationship with a consultant can be very beneficial as you always have someone to turn to when any sticky situations or questions arise. Reach out to Divocate today to get started building your relationship.