A FEW QUESTIONS YOU SHOULD ANSWER BEFORE STARTING A BUSINESS
So you’ve got what it takes to be an entrepreneur? Now, ask yourself these questions to make sure you’re thinking about the right key business decisions:
1) MARKET RESEARCH & COMPETITIVE ANALYSIS
SBA BUSINESS GUIDE • PLAN YOUR BUSINESS
Market research helps you find customers for your business. Competitive analysis helps you make your business unique. Combine them to find a competitive advantage for your small business. Gather demographic information to better understand opportunities and limitations for gaining customers.
2) WRITE YOUR BUSINESS PLAN
SBA BUSINESS GUIDE • PLAN YOUR BUSINESS
A good business plan guides you through each stage of starting and managing your business. You’ll use your business plan as a roadmap for how to structure, run, and grow your new business. It’s a way to think through the key elements of your business. Business plans can help you get funding or bring on…
3) FUND YOUR BUSINESS
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Your business plan will help you figure out how much money you’ll need to start your business. If you don’t have that amount on hand, you’ll need to either raise or borrow the capital. Fortunately, there are more ways than ever to find the capital you need. Every business has different needs, and no financial solution is one size fits all.
4) PICK YOUR BUSINESS LOCATION
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Your business location is one of the most important decisions you’ll make. Whether you’re setting up a brick-and-mortar business or launching an online store, the choices you make could affect your taxes, legal requirements, and revenue. Your business location determines the taxes, zoning laws, and regulations your business will be subject to.
5) CHOOSE A BUSINESS STRUCTURE
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The legal structure you choose for your business will impact your business registration requirements, how much you pay in taxes, and your personal liability. The business structure you choose influences everything from day-to-day operations, to taxes, to how much of your personal assets are at risk. You should choose a business structure that gives…
6) CHOOSE YOUR BUSINESS NAME
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It’s not easy to pick the perfect name. You’ll want one that reflects your brand and captures your spirit. You’ll also want to make sure your business name isn’t already being used by someone else. You can find the right business name with creativity and market research. Once you’ve picked your name, you should protect it by registering it with the right agencies.
7) REGISTER YOUR BUSINESS
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Once you’ve picked the perfect business name, it’s time to make it legal and protect your brand. If you’re doing business under a name different than your own, you’ll need to register with the federal government, and maybe your state government, too. Register your business to make it a distinct legal entity. How and where you need to register depends on your business structure and business location.
8) GET FEDERAL AND STATE TAX IDS
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You’ll use your employer identification number (EIN) for important steps to start and grow your business, like opening a bank account and paying taxes. It’s like a social security number for your business. Some — but not all — states require you to get a tax ID as well. Your state tax ID and federal tax ID numbers — also known as an Employer Identification Number (EIN) — work like a personal social security number, but for your business.
9) APPLY FOR LICENSES AND PERMITS
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Keep your business running smoothly by staying legally compliant. The licenses and permits you need for your business will vary by industry, state, location, and other factors. Most small businesses need a combination of licenses and permits from both federal and state agencies. The requirements — and fees — vary based on your business activities, location, and government rules.
10) OPEN A BUSINESS BANK ACCOUNT
SBA BUSINESS GUIDE • PLAN YOUR BUSINESS
A small business checking account can help you handle legal, tax, and day-to-day issues. The good news is it’s easy to set one up if you have the right registrations and paperwork ready. Open a business account when you’re ready to start accepting or spending money as your business. A business bank account helps you stay legally compliant and protected. It also provides benefits to your…
