Start Up of any Business

As your ideas for an up-and-coming business arise, you will need to quickly start getting all of the legalities out of the way. It is extremely important that your business understands the steps it needs to take in order to be successful and financially stable.

Before Opening

The legal aspect of your business needs to be settled before you move in any other direction. This is extremely important because you do not want your whole business plan to go to waste due to incorrect business requirements. Establishing a clear business plan will help your company. This should embody a 3-5 year breakdown of how your business is going to increase revenue. When creating a business plan, it is most efficient to not waste time on the simple parts. For example, you should not spend too long picking out a business name. You can always change your company name when you have more ideas assembled.

If you plan on having employees or forming a partnership, LLC, or corporation you will need to obtain an Employer Identification Number (EIN). It is very important that you register your trade name so no on else can take it and use it to their benefit. If you don’t already, make sure you get yourself a business license. Making sure that you have all the necessary permits for your business is crucial to ensure the security of your company. Depending on the location of your new business, you’ll want to see if it requires a permit. Lastly, you should open up a business bank account that is separate from your other accounts. This is so you can track all your bookkeeping without any confusion.

Finances

Unless you have been saving up for this new business for years, you are most likely going to have to borrow money to get it up and running. You can do so by receiving loans or borrowing money from family/friends. Some alternatives to securing your finances include:

• Borrowing against IRA or 401(k)
• Government grants
• Peer to peer lending
• Crowdfunding
• Microfinancing where you take a small loan
• Financing through suppliers
• Joining business competitions or contests

Receiving the funding to start your business can be stressful. But with the right mindset, and some searching, you will be able to get the finances you need to get your business up and running in no time! 🙂