To
start a business it is a good idea to have an understanding of the
business, written business plan, a good understanding of the economics
of the business, some experience in a related business, and enough
funds to be able to cover your costs until the business becomes
profitable.
The
more you know about starting a business, the more power you have to
form an organization that develops into a lasting source of income and
satisfaction. For help with the beginning stages of operating a
business, the following checklist is a great place to start.
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Determine what type of business suits you.
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Use a break-even analysis to determine if your idea can make money.
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Write a business plan, including a profit/loss forecast and a cash flow analysis.
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Find sources of start-up financing.
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Decide how much protection from personal liability you'll need, which depends on your business's risks.
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Decide how you'd like the business to be taxed.
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Research
the various types of ownership structures: Sole proprietorship,
Partnership, LLC, C Corporation, S Corporation. Get more in-depth
information from a self-help resource or a lawyer, if necessary, before
you settle on a structure.
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Think of several business names that might suit your company and its products or services.
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If you will do business online, check if your proposed business names are available as domain names.
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Register your business name with your county clerk as a fictitious or assumed business name, if necessary.
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Register
your business name as a federal or state trademark if you'll do
business regionally or nationally and will use your business name to
identify a product or service.
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Identify the features and fixtures your business will need.
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Decide what neighborhood would be best for your business and find out what the average rents are in those neighborhoods.
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Obtain
a federal employment identification number by filing IRS Form SS-4
(unless you are a sole proprietorship or single-member limited
liability company without employees).
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Obtain a seller's permit from your state if you will sell retail goods.
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Obtain state licenses, such as specialized vocation-related licenses or environmental permits, if necessary.
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Obtain a local tax registration certificate, a.k.a. business license.
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Obtain local permits, if required, such as a conditional use permit or zoning variance.
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Contact an insurance agent or broker to answer questions and give you policy quotes.
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If
you will be working from your home, make sure your homeowner's
insurance covers damage to or theft of your business assets as well as
liability for business-related injuries.
