Financal Steps to Take When Starting a New Business

Entrepreneurship is the new sexy!!! It is 21st century’s coolest career option.

Entrepreneurs are today’s superheroes and world changers!!! It’s Entrepreneurs who create the future!!! Steve Jobs, Bill Gates, Mark Zuckerberg, Elon Musk, Richard Branson, and many more have changed the face of entrepreneurship.

We have more people taking up entrepreneurship today than at any time in the past. But, what most people do not understand is that Entrepreneurship is tough. It is more difficult than it is sexy. The people who succeed at entrepreneurship are way too small compared to those who fail.

Success in business is not guaranteed under any circumstances, but there are some things that you can do that increases your chances of success.

Is Starting a Business Right For you?

How to start your own bizAs exciting as it may sound, starting a new business is no simple task. There are many challenges and obstacles that you will face on a daily basis. So the first question you need to ask yourself before venturing into a business is whether you are built to be an entrepreneur. Answer to the question lies in understanding if you posses the following characteristics and skills:

Hardworking High risk taking Good negotiator Creative Independent Self discipline Good at people management

Finally, the most important is whether you are allIpersuasive: This is the most important of characters required if you have to succeed in business. Steve Jobs rightly put it when he said, “I’m convinced that about half of what separates successful entrepreneurs from the non-successful ones is pure perseverance.”

Once, you are convinced that you have it in you to be an entrepreneur; it’s time to roll up your sleeves and get to work.

Following are some steps you need to take when starting a new business:

Business Plan: This is the most important step when starting a new business. Never go into a business with just a half-baked idea. Have a clear roadmap as to what needs to be done for the business to succeed. Brainstorm your idea, understand the market and assess your finances. Your business plan should outline the business’s activities and strategy for the next three to five years. Be flexible but at the same time have a plan. Remember, good Preparation is half the job done.

Get Assistance and Training: Attend business programs and seminars. Find yourself a mentor if you can. Get any training that you think is necessary. There is no thing as excessive knowledge. This will prepare you for the everyday challenges.

Location: Finalize on your business location. Take into consideration how important physical visibility for your business is. If an e-commerce business, get the services of the best designers and developers.

Funding: Plan ahead for at least a year in terms of finances. Do not go into business with a short-term plan. Irrespective of your business’ success, it will take time for you to post profits. So, know where your money is coming for the next year.

Legal Structure: Your business must have a legal structure. There are many options available such as proprietorship, Limited Liability Company (LLC), partnership and private limited company. Decide and move ahead with the best option for you.

Register Business: Once the structure is decided, finalize the name and register it.

Tax Identification Number: A tax identification number is a must for a business, and you will need to get it from the state revenue agency and the IRS. It is a must to register with state government agencies to provide worker’s compensation, disability and unemployment insurance.

Business License and Permits: Depending on the nature of your business, you will have to get necessary permits and licenses from respective agencies, local, state and federal.

Employer Responsibilities: Being an employer comes with many responsibilities. You must gain a clear understanding of this to legally hire and manage employees.

Once you have done the above, you are ready to take your business to the market.