Starting Your Own Business is a really exciting challenge! But how do you actually get started? and how can you overcome those “early stage challenges?”
Having the chance to start your own business can be an exciting and rewarding experience. So many ideas to explore, so many paths to go down, however, there are some simple things you should do to plan starting your own business the right way.
A good starting point is to determine your business plan. For help on this, you can visit the Small Business Administration’s website and they can provide you with the information to create a financially sound plan that can help you with opening your own business with minimal risks involved. However, this business plan will be important for another reason.
Government backed loans and other funding for your business will require that you have a business plan in place. That means this first document is going to be among the most important items you will have for your business.
Once you have the finances and plan ready, you can continue to start up your own business. The next item you will want to do is to register your business name. For this, you need to be careful about how you name it.
When you open your own business, especially in the business start up phase, you need to pay close attention to the legal aspects of this process. Names should be in good taste and not infringe on the trademarks of other companies. It will be important that you check with an attorney that specializes in small businesses, if you are struggling in this area, to ensure your name will work based on any regulations in place by city or state ordinances.
From here, it will be important for you to determine the legal structure of your business. If you are doing it alone, there is a good chance you will be doing is as a sole proprietorship; however, if others are involved, you may need to list it as a partnership, Limited Liability Corporation or S Corporation.
Tax & Legal Status
Once that is in place, you can then apply for your Tax Identification number with the IRS and register also in the state you will be doing business in. This will be essential for the taxes you will be required to pay. This number will also be useful when you are ordering wholesale items as it allows you to pick them up tax exempt.
With your name and legal status in place, you can then file to register your business. Also known as the “Doing Business As” registration, you need to file an application and a fee with your state government.
You will need to choose whether to trade as a sole trader or register a partnership or a company. You can find lots of information on the Gov.uk website, or can consult an accountant. If you are happy and know what capacity you wish to trade as, then you can register as self employed directly with HMRC or Companies house to register a Company.
You could contact specialist legal advisers here in the UK. An example of such advisers are Square one Law: corporate legal advisors. It is always best to contact specialist advisers in the commercial field, so Square One Law would be a good example of a legal firm equipped to deal with early stage business and corporate issues.
Permits and Licenses
You will need to pick up all required permits and licenses as required by your local government (USA) or various governing bodies for food, health and safety etc in the UK, to operate your business in your local area. It will be your responsibility before you open your own business to have all these items in possession before you open your business to avoid any potential fines and penalties.
The opportunity to start up your own business is a very exciting one, but one that can leave lots of us stumbling at the first hurdles. Always seek proper advice, and ensure you don’t overlook the basics while creating your dream business product or service!