{"id":6401,"date":"2019-05-23T12:48:36","date_gmt":"2019-05-23T19:48:36","guid":{"rendered":"https:\/\/instantimprints.com\/franchise\/?p=6401"},"modified":"2019-05-09T12:51:21","modified_gmt":"2019-05-09T19:51:21","slug":"starting-a-business-10-steps-to-start-your-own-business","status":"publish","type":"post","link":"https:\/\/instantimprints.com\/franchise\/starting-a-business-10-steps-to-start-your-own-business\/","title":{"rendered":"Starting a Business: 10 Steps to Start Your Own Business"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Starting a new business takes a lot\nof time, energy, and hard work. There are products to develop, people to hire, leases\nto sign, and marketing to announce your new business to the world. Before you\ndo any of these, you need to establish your business as a legal entity at the\ncity, state and federal level. Otherwise, many of the actual operations of the\nbusiness can\u2019t take place. This blog will focus on the 10 steps involved in how\nto smart a small business from a legal standpoint.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Steps For Starting a Business<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>1. Conduct market research and competitive analysis.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is the only step that comes\nbefore doing all the legal stuff, and it involves determining whether you have\na viable business. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Marketing research helps you find what\nno business can live without\u2013customers. Start by getting to know your customer\nbase. Who are they? How old are they? What\u2019s their average income? What is the\nbest way to reach them? Gathering demographic and trend information can help\nyou answer these and other critical questions. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Market research helps make your\nbusiness unique. Analyze the competitive landscape to identify:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Market size and competitor share<\/li><li>Strengths and weaknesses of competitors<\/li><li>Window of opportunity to enter the market<\/li><li>Barriers (financial, competitive, technology,\netc.) to entering the market<\/li><li>Indirect or secondary competitors<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The Small Business Administration\n(SBA) offers free <a href=\"https:\/\/www.sba.gov\/business-guide\/plan-your-business\/market-research-competitive-analysis\">small\nbusiness data and trends<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">to help with your marketing\nresearch and analysis.&nbsp;&nbsp; <\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>2. Create a written business plan.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Once you decide you have a viable\nbusiness, the business plan defines how you will structure, run, and grow it. It\nalso helps attract investors, partners or employees when first starting out.\nTraditional business plans tend to be lengthy and detailed, and usually cover:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Company description<\/li><li>Your competitive advantage(s)<\/li><li>Market analysis<\/li><li>Organizational and management structure<\/li><li>Your product or service<\/li><li>Marketing and sales<\/li><li>Funding needs and financial projections<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">For those in a hurry to start a new\nbusiness, \u201clean\u201d startup plans can be as short as one page. They focus on key\npoints such as your company\u2019s value proposition, infrastructure, customers, and\nfinances. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>3. Fund your business.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Opening a business takes money. If\nyou have enough financial resources, such as savings or credit cards, you can\nfund the business yourself. Family and friends can help if necessary. You\nretain control of the business, but also assume all the risk.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you need to raise funding, common\ntechniques include:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Venture\ncapital. <\/strong>Venture capital firms provide funding in exchange for part\nownership of your business. <\/li><li><strong>Angel\ninvestors.<\/strong> These are individuals looking to invest in startup firms. <\/li><li><strong>Crowdfunding.<\/strong>\nA lot of people contribute money to your startup through a website. Instead of\nownership, they expect to receive some type of gift, such as the product you\nplan to sell.<\/li><li><strong>Small\nbusiness loan.<\/strong> These are obtained from banks or credit unions. You maintain\nfull ownership of the business but will pay interest on the loan. <\/li><li><strong>Lender match.<\/strong>\nIf you don\u2019t qualify for a regular small business loan, other lenders may\nprovide an SBA-guaranteed loan.<\/li><li><strong>Small business\ninvestment companies (SBICs).<\/strong> These are privately owned investment funds\nlicensed and regulated by the SBA. SBICs make equity and debt investments in\nstartup businesses that qualify.<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>4. Select your business location.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">When considering how to open a\nbusiness, location plays a major role because you must register the business,\nobtain all required licenses and permits, and pay taxes in the area you locate.\nWhen choosing the location, other factors to consider include:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The location of your customer base and business\npartners<\/li><li>Personal preferences<\/li><li>The costs, benefits, and restrictions of local\nand state government agencies<\/li><li>Minimum wages<\/li><li>Local zoning ordinances<\/li><li>Local and state taxes<\/li><li>Local and state government incentives<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>5. Decide on your business structure.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Your business structure will\ninfluence day-to-day operations, taxes, and the level of risk to your personal\nassets. The four most common structures include:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Sole\nproprietorship.<\/strong> One person owns the business. You get complete control, but\nyour personal assets are at risk.<\/li><li><strong>Partnerships.<\/strong>\nTwo or more people own the business A limited partnership (LP) has one general\npartner with unlimited liability and other partners with limited liability. A\nlimited liability partnership (LLP) provides limited liability to every partner.&nbsp;<\/li><li><strong>C-Corporation.\n<\/strong>This makes the business a legal entity separate from its owners. It protects\nagainst personal liability, but costs more to operate and requires a lot of\nrecord-keeping and reporting.<\/li><li><strong>S-corporation.<\/strong>\nThis structure avoids the double taxation of regular C-corps, but the business\nhas to meet specific criteria. It also involves extensive record-keeping and\nreporting.<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>6. Give your business a name.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Starting a business requires a\nname, and the best business names are short and easy to remember. They should\nalso reflect the brand you want your business to have. Registering the name can\nbe done in four ways:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Entity\nname.<\/strong> Protects your business at the state level.<\/li><li><strong>Trademark.<\/strong>\nProtects your business at the federal level.<\/li><li><strong>Doing\nbusiness as (DBA).<\/strong> Doesn\u2019t provide legal protection, but it could be\nlegally required.<\/li><li><strong>Domain\nname.<\/strong> Gives you a unique website address.<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Registering the name is important\nfor protecting it. Don\u2019t overlook this step.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>7. Register your business.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Registering your business provides\npersonal liability protection, as well as tax and legal benefits. At the\nfederal level, most small businesses only need to apply for a federal tax ID. Filing\nat the state level usually costs less than $300, although fees can vary\ndepending on your state and business structure. You will need to provide your\nbusiness name and location, ownership or management structure, and registered\nagent information. If you\u2019re a corporation, you will also need to provide the\nnumber and value of shares. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>8. Get federal and state tax IDs.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A federal tax ID number is the same\nthing as an Employer Identification Number (EIN). It is essential for hiring\nemployees, paying federal taxes, opening a business bank account and applying\nfor business licenses and permits. The IRS provides an <a href=\"https:\/\/sa.www4.irs.gov\/modiein\/individual\/index.jsp\">EIN assistance tool<\/a>\nto walk you through the application process. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Not all states require a tax ID\nnumber. It depends on the state\u2019s income and employment tax laws. Visit your\nstate's website to determine whether you need a state tax ID number in order to\npay state taxes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>9. Apply for licenses and permits.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">When starting your own business,\nyou want to be sure it complies with all relevant state and federal regulations.\nThe licenses and permits you need will vary by industry, state, location, and\nother factors.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If any of your business activities\nare regulated by a federal agency, you will need to get a federal license or\npermit. This includes opening a business in industries like agriculture,\naviation, firearms, mining and drilling, broadcasting and much more.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Required state, county or city licenses\nand permits will depend on your business activities and&nbsp;location. States tend\nto regulate a wider variety of businesses than the feds. For example, plumbing,\nrestaurants, dry cleaning, and construction. Visit your state's website to find\nout which permits and licenses you need.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>10. Open a business bank account.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Opening an business bank account\nshould include a checking, savings, and a credit card account. You will also\nneed a merchant account to accept credit and debit card payments from\ncustomers. A business bank account offers important benefits:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Provides limited personal liability protection\nby separating business funds from your personal funds<\/li><li>Allows customers to pay with credit cards and\nmake checks out to your business instead of you <\/li><li>Offers the option to open a business line of\ncredit which can be used for capital or operating expenses<\/li><li>Enables you to make large startup purchases with\nthe credit card when cash flow is tight<\/li><li>Helps build a credit history for your business<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Franchising \u2013 The Easy Way to Start Your Own Business<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">If you would rather avoid all this\nlegwork, you may want to consider <a href=\"https:\/\/instantimprints.com\/franchise\/\">buying a franchise<\/a>. Here are\nsome of the reasons why:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>No\nexperience necessary.<\/strong> If you\u2019re having a hard time coming up with a good\nidea, buying a franchise provides a ready-made model. You get extensive\ntraining and support before opening your store. You also get the benefit of\nknowledge and experience within the organization.<\/li><li><strong>Less\nrisk. <\/strong>Franchises offer a more secure investment than new businesses. They\nhave the support of a larger, established corporation. The business model has\nalready proven to be successful. It\u2019s also easier to get a franchise loan than\na new business loan.<\/li><li><strong>Instant brand\nrecognition. <\/strong>When you buy a franchise, you get a built-in customer base\nthat knows your brand. This eliminates much of the effort required to market a\nnew business.<\/li><li><strong>Extensive\nsupport. <\/strong>Franchisors provide everything from pre-opening assistance to\ndesign, construction financing, training and even grand-opening programs. <\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Best of all, you still get to be\nyour own boss! As a franchisee, you have to abide by rules and regulations as\nestablished by the franchisor. But when it comes to running your store, you\u2019re\nin charge. If you would like to be in business for yourself but not by yourself,\nconsider franchising. Almost 750,000 Americans already have!<\/p>\n","protected":false},"excerpt":{"rendered":"Starting a new business takes a lot of time, energy, and hard work. There are products to develop, people to hire, leases to sign, and marketing to announce your new business to the world. Before you do any of these, you need to establish your business as a legal entity at the city, state and federal level. Otherwise, many of&nbsp;<a href=\"https:\/\/instantimprints.com\/franchise\/starting-a-business-10-steps-to-start-your-own-business\/\" class=\"read-more\">Continue Reading<\/a>","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47],"tags":[],"class_list":["post-6401","post","type-post","status-publish","format-standard","hentry","category-franchising","cat-47-id"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Starting a Business: 10 Steps to Start Your Own Business - Instant Imprints<\/title>\n<meta name=\"description\" content=\"Start Your Own Business - Learn what you need to know before you start your business and steps of how to your own business. 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