Thinking about how to start a business in 2018, people are guided by various reasons. For some, this is the evolution of an original idea, for the second – a capacity to grow professionally, for the third – a chance to get financial independence. Therefore it is not surprising that annually there are thousands of persons who want to start their own company.
True, not every intention justifies itself and leads to success. As a rule, about two-thirds of firms cease to exist after three years of activity. I.e. before you as a business holder appears a real problem of survival. That is why it is so significant to master all the nuances of such a hard task.
12 Simple Step Guide to Starting a Business
Everyone will agree that commerce is actually an exchange of money for certain service you are ready to offer to buyers. This is a way to solve their issue for financial reward. Let's say you are a confident driver or creative designer, that is, you represent a value for which individuals can pay worthily.
In order to decide on a winning idea, on a piece of paper make a list of 10 skills, in your opinion, you own better than others. Then reflect on what is most pleasing at the time of the fulfillment of the foregoing. The point is that it is not natural for a person to engage in what he or she does not like for a long time, while commerce is a kind of creationary process, requiring will, power and dedication.
For example, after the assignment, you came to the conclusion that you have a tendency and interest in teaching, communicating with people and working with information. A manifestation of these abilities in the complex will allow you to become a tutor, consultant or manager in network marketing. If you are psychologically ready for an economic breakthrough, take a step-by-step overview before starting a business checklist.
Doing a Research
Your intention should be as much as possible consistent with reality. You do not deal with philosophy, you are engaged in trade. In order for the purpose to succeed, check it out before you finally begin the process. It must involve a solution to a particular problem or satisfy the customer's need.
Experienced specialists identify several ways of identification, like focus groups, establishing cause-effect relationships or SWOT-analysis. When studying a particular market segment, answer the next questions:
- Is there a need for your products?
- What is your target audience?
- Are there competitors with similar services?
- How exactly will you promote the business?
Answering them, you will get a clearer vision of the future motion vector. Another option is to use a franchise of a well-known company or brand. Here you need a good location and cash.
Write a Program
In a financial environment, a business plan is seen as a vital element at the beginning of an independent path. It will aid you not to lose a course, to stimulate the creation of new branches and to develop as a professional. Without a thought-out scheme, your project will remain only on paper.
There are multiple types of planning. If you are going to apply for support to an investor, choose a traditional model. Its compilation takes a long time due to the presence of a number of mandatory sections. They are looking for banks, making a decision to provide financial assistance.
If you have sufficient material resources, you may well need a one-page plan with clearly outlines goals, current tasks, and potential benefits. For this aim, even a usual napkin suit. The main thing is to reflect all considerations in writing.
Opening a new business is always connected with costs, the amount of which depends on the planned scale. Initial fees will be required to cover expenses. Create a table for estimating the investment required to run a company. We are talking about licenses, permits, equipment, insurance, brand development, product logos, opening ceremonies, rent of premises, etc. After a preliminary calculation, multiply the figure by 12 months. Exactly so much you will need time to see the first profit.
Experts identify various ways of financing, such as loans, grant programs, investor assistance or crowdfunding. A lot of businessmen simply try to reduce charges, being content only with necessary things. In any case, you have to work through all the available options to stay on the right one for you.
Decide on the Business Structure
You may be a sole owner of a company or organize a limited partnership. The type of legal entity will further influence the firm's internal policy, from the distribution of income to taxes. Of course, you have the right to make changes to the chosen scheme as a business grows, but it is better to weigh all the pros and cons in advance.
Register a Company Name
Denomination should reflect the nature of an activity, so seriously think about its wording. Refer to competitors, explore the options in the Internet space for evading a mistake with a selection. After you have finally determined, make sure that no one uses it as a trademark.
If the test shows a negative result, register the name. In that case, you are a sole owner, ask for help from the Secretary of State. Other economic formats are recorded when submitting a full package of documents. Do not forget about booking a domain name.
Register with the Government and IRS
To become an officially recognized subject of entrepreneurship, contact a government. The package of constituent papers consists of the firm’s title, business plan, data about the corporate structure and other information about a company. After registration, you may need an IRS Employer Identification Number (EIN), especially if you are planning to form a staff. This procedure could be completed online and completely free of charge.
Doing commerce is inherent in the documentation. Analyze exactly what permissions you will need to fully launch the process, and submit the suitable applications. Their absence or disregard business laws are fraught with troubles in the form of fines, additional checks, and a damaged reputation.
Suppose about an Accounting System
The correct accounting scheme is necessary for managing the company's budget, setting rates, paying taxes and signing contracts with partners. There are two paths before you: either set up the system yourself or contact a professional. In the first event, it is worth taking care of the availability of software.
Frequently, entrepreneurs forget about such an essential document, hoping for a good luck. But it's better to protect own commerce from surprises. Damage to property, theft or legal action is usually very expensive. You have to be confident in your defense.
If you have laborers, take care of compensation in case of unemployment. You may need other types of policies, but most contractors are limited to general liability insurance or the policy of the company’s owner. Such agreements cover property damage and personal injury.
You may also study in detail the issue of professional responsibility, especially if your firm specializes in the delivery of services. This policy protects you from negligence in your work.
Equip a Workplace
First of all, think about whether it makes sense to buy or rent a separate space. To do this, remember your location, the necessary equipment, and selected industry. Working conditions must correspond to the chosen type of business activity.
Teach the Team
Make a list of positions that you want to fill. Opposite each item, detail duties and rights of an employee. Thus, the head will clearly represent who he or she is looking for. If you prefer outsourcing, consult an attorney for an independent contract with a bidder. After all, if you do not want to hire strangers, ask for family support. Although in this case there are often problems.
Promote Your Business
Remember, the more customers you attract, the faster your company will progress. Write a unique proposal and make an excellent business structure. Conduct a study of the best start-ups this year to create some “basis of inspiration”. Use social networks as a platform for advertising or collaborate with famous brands and persons. You can take part in a charity evening or sponsor the discovery of new talents. Prepare yourself for the fact that success will not come tomorrow. But moving along the scheme, you increase chances of winning.
Thus, do not build illusions that opening your own business is an easy task. You will require a lot of time, resources and efforts to get a valuable result. More than once you despair and abandon your plans. But if you overcome everything, your idea will not only survive, but it will also bring a big income.