The idea of starting up a new business usually comes from both a frustration for working for someone else and a desire to follow your dreams and build something you cannot get off your mind.
But transitioning from worker to employer is quite a leap. You have to remake yourself from someone who has typical job responsibilities that start and end when you get to the job, to someone who is always working whether it is during office hours or late and on weekends and holidays. You also have to constantly be concerned with bills and salaries getting paid, taxes and insurance, and whether your employees are happy and want to stay with your business long term.
There are literally dozens of issues to deal with and they start with when you initially set up your business. How you start things off in large measure can determine where you end up so paying attention early is an important things to do. Here are some key issues to get right when looking to launch a successful business.
Forming a Legal Business Entity
Once you have decided that you are going to start your business. You need to form a legal corporate entity. There are several different choices that you can make to set up your company with the most popular being a Limited Liability Corporation, An S Corporation and a C Corporation. Each has its own set of specifics and benefits, but they all shield you as an individual from many liabilities, position you to avoid certain taxes, and present you as professional to vendors and customers.
For the majority of new business owners, a Limited Liability Company or LLC forms will be the best choice. This structure provides adequate protections for owners and individuals employed by the business, allows for a simplified and less expensive tax filings, and is simpler and cheaper overall to maintain. For those seeking more info on the topic of LLCs, click here to see how to get LLC.
One major area of starting your new business is securing the funding you need to execute your vision. Most new business owners believe that they can fund their businesses until they become profitable and then find that this is not the case after they have run out of cash. The best thing to do to avoid this from happening is to do a business plan with a detailed budget of the costs you need to run your business. Financing will take you from the start to profitability so getting a clear understanding of your exact needs will make all of the difference. You might be able to fund yourself out of your own savings or you might find you need to take on investment. If so, consider family and friends first because these will be the most amenable to providing you funding. If no one will come to the table for you or won’t meet your terms, you can try either banks or one of the many quick funding options available in most cities today. The key is to have enough funding to fund your worst-case growth scenario. This way you will always have the money you need to run and grow your business and additional funding available in case your projections are off.