Entrepreneurship comes with great risks and a lot of commitment; however, it can produce a large reward. There are resources that will teach you how to get your business in order in addition to paid experts and resources that can provide assistance. Being a small business, it is best that you exhaust the free resources offered to keep your startup costs low. Online sites such as Get FREE Advice from Business Experts | SCORE is an example of a free resource that can be used by small business owners when getting started.
The following steps can also be used to help you get started on your journey to business ownership, as starting a small business is an exciting achievement.
- Cultivate your idea. You must determine if your idea can be turned into a sustainable business model. All ideas are not suitable for business. You can determine if your idea is worth pursing by thoroughly researching the market and running it by trusted individuals who have knowledge in your area of interest.
- Decide on a legal business entity. There are different entities to choose from. You will need to decide which is best for your business as this will impact liability, taxes, etc. The types of legal entities are as follows:
- Sole Proprietorship
- Partnership
- LLC- Limited liability company
- Corporation
- S-Corp
- Register your business. Once you choose a home state for your business, you will need to register the business with the secretary of state. There are advantages to registering your business in certain states, so be sure to research each states’ registration guidelines to determine what’s best for your business model.
- Register for an Employer Identification Number (EIN). An EIN is assigned by the federal government. This number is an identifier like a social security number for an individual. Registering for an EIN can be done online and is free. Apply for an Employer Identification Number (EIN) Online | Internal Revenue Service (irs.gov)
- Write a business plan. A business plan is the foundation of any business. Be sure to to include an executive summary, company description, market analysis, organizational structure, details on the business’ product or service, marketing plan, and financial projections.
Forming a new business is risky but worth it. Your desire to create a venture and help it grow will be a challenge that can also be incomparably fulfilling.
BONUS TIP: Advertise your business. Effectively advertise your business by building a website, via social media, email marketing, search engine optimization, press releases, and word of mouth.
Sources:
Jessica Walrack. 2022, The Balance Money, How To Start a Small Business in 8 Steps.<https://www.thebalancemoney.com/starting-a-small-business-101-the-essential-steps-2951446>
