Yes, there are thousands of businesses you could start, with more emerging daily
thanks to new technology and good old-fashioned ingenuity. Yet despite the vast
universe of possibilities, there are a few essential steps you need to take before
starting a business, any business.
Do your market research: Just because you build it or sell it doesn't necessarily
mean anyone will buy it. The first essential step is to research your potential
market. Who needs what you are offering? Is there space for your product or
service in the market or is the market saturated? Is the market national? Is it a
niche? Can you define your ideal customers? These are all questions that need to
be answered before you even consider starting a business. Too many
entrepreneurs have found out the hard way that there was not enough market
share for them to capture. Others have realized that their target market audience
was far too limited to make their business work.
Show yourself the money: You can't start a business without capital. Determine
what you have, what you will need and how you will go about getting it. If you
plan to seek investor funding or financing, start writing a business plan and
practice your pitch. Research the costs associated with your business. Know how
much money you'll need and decide where it could come from.
Hire a good business attorney: You don't necessarily need to have an attorney on
a retainer, but you'll want to hire an attorney experienced with new businesses
to help you get started. Your attorney can advise you about such things as
drafting contracts, reviewing your lease and determining the right business
structure. "A good attorney will know what it is that you are trying to do and help
you structure your business in a way that will be beneficial to you," says Chris
Talis, senior partner at Hedgerow Mergers Acquisitions in Teaneck, N.J. The best
way to find a good attorney is by referral or through networking.
Hire a good accountant: An accountant will work in conjunction with your
attorney and be instrumental in determining the best form of ownership. He can
also help you establish bookkeeping and other record keeping procedures that
can keep you on track for years. Most important, a good accountant will help
with tax planning. "You will also want an accountant who understands the state
laws, since every state has its own little intricacies, such as sales tax issues," Talis
says, adding that it's important for your accountant to be familiar with startup
ventures.
Decide on a business structure: Your choices include sole proprietorship,
partnership, corporation, "S" corporation or limited liability corporation (LLC).
Personal liability, taxes, paperwork and regulations vary greatly among the
different legal business structures. Your attorney and accountant will play a key
role in assisting you in this important decision.
Decide on a business name: It may seem obvious and simple, but the name is
how your business will be known to the world. The right name says a lot about
your company. Make a list of potential names and narrow the list down to the
one that best describes your company in a few words, while being catchy, easy to
remember, easy to pronounce and easy to spell. You should also consider how it
will translate to a web domain name. You'll also need to do research to see if
there are a) similar business names and b) similar domain names.
Get all necessary licenses and permits: Along with a business license, you may
need to get additional licenses depending on the type of business and local laws.
Many professionals, such as contractors and real estate agents, need to be
licensed in the states in which they work. Additionally, you may need licenses to
manufacture and/or sell specific products such as liquor, firearms or even lottery
tickets. Research all licenses applicable in your county and your state. It's also
extremely important to know the zoning laws before you open a business. Don't
assume the zoning laws don't apply to you. You can get information on zoning
from your local county clerk's office.
There are definitely other important steps to getting a business off the ground,
such as finding a technical expert and launching a website (a must in today's
competitive market). However, if you've taken the seven steps above, you will
find yourself in a confident, business-ready position