The prospect of starting your own business or company might sound incredibly exciting, but it is demanding as well. Getting into a new business or establishing a company is not a cakewalk and requires a lot of time and effort from your end. It is not a one day game and requires months of planning to bring things into action.
So, to help you begin your venture, we have jotted down a series of steps that would act as your guide book to start your company. These are essentially the steps every start-up must take to ensure that the firm is headed for success in the long run.
Step 1: Make A Comprehensive Business Plan
- The first step towards starting your company is to create a comprehensive business plan. A well-sketched business plan should give the idea of the nature of the business, the products/services that you might be offering, the operating procedure that your business will follow, close analysis of market competition and the outline of the end goal of your business.
- The second stage is to identify whether you will need funding for your company or you will be able to fund it yourself. If you need funding, then what approach will you take? Either you will go for a traditional bank loan or look for a venture capitalist who would be interested in investing in your business plan.
- Before you head out to approach banks or investors for funding, make sure you have a plan ready in hand. The business plan must include the marketing strategy of your business so that they get acquainted with your vision and products/services, how you will attract the customers and how the potential customers can approach you.
- Get a logo designed for your business followed by the business cards and even stationery if required. These things might seem small but can have a great impact in establishing your company’s identity in the fierce competition market. It can also help your potential customers to remember you for a long time.
Step 2: Complete The Legal Requirements
- For incorporating your business, it is important to get it sanctioned legally from your state department. Legalization of a company is specifically required to ensure the protection of your assets, liabilities and other business debts. Getting all the necessary licenses and completing the legal formalities gives you tax benefits and adds credibility to your business with the potential customers, business partners and even vendors from whom you might buy the products or raw material.
- Keeping an accountant and an attorney for your company is essential as it aids in taking advice related to legal and financial matters. When looking for an accountant and an attorney, try to get referrals from your friends and family members. Else, you can also search for professionals who have already worked with small business enterprises or the ones’ who are unique to the industry you are venturing in.
- Apply for all the necessary tax identification numbers, permits and business licenses, which will mainly include your sales tax number, TIN Number, and other things necessary in your state to establish a company. Do check for the licenses and permits that you might need depending on the nature of your business in your state, city, municipality, etc.
- Legal registration number, a patent for the company name and logo and other necessary documentation is also one of the first few steps needed to establish a business. Get in touch with a reputed insurance company to get your company insured with the right amount that can match the capital investment of your business.
Step 3: Prepare Yourself Financially
- Separate your personal finances from the business finances; and to do so, opening a separate business bank account is the key. Most of the banks ask for basic details like name of the company, date of formation, business type, name and address of the owner, etc. to open a business account. In case you have not yet registered the name of the company then every bank follows a different protocol in that scenario which you will get to know at the time of opening the account.
- Identify how much financial banking you already have and how much you need to gather more. You might need to take a loan from a bank or look for investors who will be willing to invest in your business idea. Take assistance of a professional accountant for finance related business solutions. An accountant will look into everything related to your business accounts, that will include, disbursement of payments, received payments, invoices, receivables, account payable Cheques/DD’s and more.
- Focus on establishing a business line credit for your company as it helps in improving your credit score, which in turn is fruitful in applying for loans or nurture relationships with the vendors. Your credit score will be scrutinized by the banks and other business entities before getting into any agreement with your to check the creditworthiness of your company.
So, everything is documented and has reached the execution stage, now its time for you to look for a decent workspace even if you are opening an online business. Having an operational workspace gives your business credibility, and in the case of online business, this can even be a home based office space. But, if you are opting for a properly leased workspace then avoid spending on furniture and other office equipment, instead, rent all the necessary stuff to keep your business running without putting additional finance burden on it.
Hope you find these tips to start your company handy and take a step ahead to bring your dream of becoming an entrepreneur into action. Meanwhile, you can keep checking the page to see more updates related to establishing your business both online and offline. We will take our leave now till we meet the next time with some other useful piece of information!