10-Steps to Starting a Business

Posted by Bizbrook on March 18, 2011 under Business, Productivity, Startups, Tax | Be the First to Comment

Although daunting, starting a company is not as difficult as it may appear. The following 8-steps may serve as your personal guide. Each of the steps are linked with more information.

Step 1: Write an Execute Summary. An executive summary is a short draft that serves as the face of your business to outsiders. It should be exciting and informative.

Step 2: Write a Business Plan. A business plan is the road map for your business. The business plan will contain statistics, financial projections, potential customers, timelines, information on competitors, and a source and use of funds. In addition, the first section of your business plan will be your executive summary.

Step 3: Choose the Type of Business Entity. Choosing the type of business entity could be critical for your business from both a liability and tax perspective. Research the differences, ask an attorney, and ask a CPA. The most usual types of businesses are corporations, limited liability companies, and partnerships.

Step 4: Form Your Business. Most small businesses are fairly simple to setup. Corporations, LLC’s, and limited partnerships require you to file articles or a certificate with the appropriate state office (usually the secretary of state). Also, the governing documents (bylaws, operating agreements, partnership agreements, etc.) will need to be drafted.

Step 5: Get Your EIN. After obtaining your certificate from the secretary of state, you can obtain your federal taxpayer number (EIN). You can get your EIN through the IRS online. Click here to use it.

Step 6: Obtain Licenses and Permits. Many businesses require the business to obtain licensees and permits. Check with your state offices or an attorney to determine what licenses and permits you need.

Step 7: Open a bank account. Once you have received your certificate from the secretary of state, obtained your EIN, and completed your formation documents, you can open a bank account.

Step 8: Get a Website. Getting a website is easy. Yahoo! Web Hosting or Go Daddy are great starting places. If you plan on selling products online, then you will also need to use some sort of merchant solution, such as Yahoo! Merchant Solutions. Finally, if you want to monetize your website, you can sign up with Commission Junction or Google Adsense, amongst others.

Step 9: Market Your Product or Service. Now that you have your website, you can adequately market your services. Check out Google’s Adwords program or Microsoft’s Adcenter. In addition to using the Big 3 paid advertising programs, brick and mortar businesses should advertise in the local sections of the Big 3 searches. Also, find the most popular local websites and advertise on those.

Step 10: Accounting Software. One great bit of advice. Use an industry accepted accounting software program to run your books. It will not only save you time and money, but it will save you lots of money when tax season arrives. I use Quickbooks, but another accounting program may be more appropriate for your business.

I hope you find the information helpful and that your new venture is successful. If you ever have any questions or comments, feel free to ask.