Important Tips for Starting a Small Business
Starting a small business is the beginning of a journey, with potentially high rewards for all your hard work. Like every journey, it requires planning.
Start with market research to see if your business idea is sound. Then, prepare a business plan to use as a guide for yourself and other stakeholders.
- A detailed plan is key if you need to seek any funding. While your goal is to make a profit, you’ll need money to get started, whether it’s your own or borrowed cash.
- Other steps will be to think of an ideal business name that isn’t already taken, and to consider what location you’ll use to conduct business.
- Choosing a legal structure for your business will also be important because it can affect your personal liability and taxes. Do some research to decide which type of business organization is right for you.
- Once you have decided on a business name and structure, you’ll need to register the business. Check with your secretary of state’s office about the registration process and any licenses and permits that will be required.
- You’ll also need to get a free federal tax ID number – called an Employer Identification Number or E-I-N – from the IRS. You may also need a state number. These are important for filing federal or state taxes, hiring employees, getting licenses and permits, and opening a bank account for your business.
- A business bank account keeps your personal and business banking separate, and business accounts provide a variety of tools to help your new company run smoothly.