Starting a business can be exciting but like anything in life it requires time, money, and most of all risk, patience, and even some luck. Putting time into carefully planning what kind of business you want can be the difference between dreams and reality. You will never know if your idea is a gold mine unless you use some dynamite.
The first step is to write a business idea you have, providing goods and services, customer service, etc. around that idea you write a three to five-year business plan that will be your road map. The business roadmap is your outline on how much profits your business will have.
Step two: is to get some kind of training in business management. Even if you have keen business insight it’s best to get some kind of degree in business management. The degree will give you experience and confidence to risk more when starting a business.
Step three: find location for your business, location is important in order to maximize profits. If you are going to open a delivery service business it is best not to open your business in the middle of nowhere.
Step four: get a loan. SBA of U.S. Small Business Administration offers a role in providing financial assistance programs to big and small business. SBA has Guaranteed Loan Programs that help small businesses to get loans from SBAs partners.
Step five: you must determine what kind of business entity to establish. Federal tax obligations are no joke when it comes to U.S.A. the type of business you establish will determine tax return form to file e.g., sole proprietorship, a partnership, a limited liability partnership, etc. Every state has a business or corporate tax. Your state tax depends on the legal structure of your business.
Step six: register your name and get tax identification number, also, don’t forget to trademark your idea if you have it.
Step seven: understand employer responsibilities. Before hiring an employee, you will need EIN or Employment Identification Number from Internal Revenue Service or the IRS. EIN or commonly known as Employer Tax ID is necessary for reporting taxes to the IRS. You must keep employment taxes records for four years according to the IRS, also, these records can help you monitor the progress of your business.
After all these steps, and possible some more, be patient and vigilant. Business is a living entity with lots of moving parts you will need to be prepared for any crises that can happen. Ensuring your business is one way of protecting it. Studies have shown that most business only becomes profitable after two to five years, also, most new businesses don’t last for more than a year because owners are not willing to risk and/or are not innovating enough.
Coming together is a beginning, keeping together is progress, working together is a success!