Many people seek the best formula to start a business. From seeking financial advice, sourcing loans, and many other start-up activities, many lack the essentials of starting a business. Primarily, starting up a business requires you to plan, make decisions on finances, and undergo legal steps. This article provides you with an easy step by step guide in opening up your business.
Step 1: Create a business plan
A business is not viable without a suitable business plan. A business plan enables you to establish a focus for your business niche. Furthermore, it lets you stick to your set timelines. Your business plan should propose your expected financials in case you will use it to seek a business start up loan.
Step 2: Source training
Many opt for business ventures in which they lack expertise. In that case, it is safe to seek further knowledge of how to run such a business. If you are aware of what is required of you, you can also check out refresher trainings just to refresh your memory. Such training can be sourced from your local business groups and schools among other institutions.
Step 3: Choose a location
Location is an essential component of any business venture. Locate a place close to your customers. Also, put into consideration laws governing that location to see if they are favorable to your business ventures.
Step 4: Source financing
As it is with any business, start-up costs constitute an enormous sum of money. If you are not able to manage the costs, it is wise to seek a loan from a bank or a micro-finance institution. Furthermore, there are grants and venture capital specific to some businesses. A good research can unearth such sources of finance.
Step 5: Structure of business
Do you want to be the sole owner of your business or enter into a partnership? Determining the legal structure of your business is essential in realizing how best you will run the business. Also, it will enable you gauge your financials in a proper manner.
Step 6: Registration of business
After identifying the structure of the business, it has to be registered. Seek business requirements from your local registrar of business. This constitutes choosing a business name that is unique to your services among other processes.
Step 7: Tax identification number
Every business is required to pay tax. Therefore, consult your local authorities for tax identification number that you will need specific to your business operations.
Step 8: Register with other taxing agencies
Taxes vary. According to your business, find out which other taxes you are required to pay and register accordingly.
Step 9: Source operating license and permit
Before your business commences, you are required to showcase your operating license and permit. Information on these documents can be collected from your local business registration department. These should be obtained in due course prior to the business opening date.
Step 10: Understand your roles
As a business owner, you automatically become an employer. Therefore, it is important for you to be conversant with your roles and responsibilities as an employer. In this case, you should be aware of the procedure of hiring employees and further requirements to that regard. Also, for management business purposes, you can compile rules and regulations you require your employees to adhere to at all times.
Having followed all these 10 steps properly, you are now set to take your business to a new level.