If you want to start your own business, you have plenty of company. The SBA estimates that over 600,000 new businesses are started each year in the U.S. If you want to be successful, however, you need a well-conceived strategy. Here are the top steps for starting a business the right way.
10 Steps to Start a New Business
Identify Your Market
Before you start a business, you have to know who your customers will be. Market research is the first crucial step that lets you know whether or not there’s sufficient demand for your type of business.
Research Funding Options
You need a certain amount of funding to start any business. Unless you have the necessary capital on hand, you’ll need to find a source of business funding. This may include bank loans, borrowing from friends or family members or crowdfunding.
Choose Your Location
If you’re opening a brick and mortar business, you need a storefront, office, or other physical space. If your business can be run remotely, you can operate it from home. Either way, you should decide where your business headquarters will be.
Choose a Name for Your Business
Your brand starts with your business name. From there you can start thinking about a logo, website and other marketing tools. Choose your name with care as it’s going to be the first impression people have of your business.
Figure Out Legal Matters
There are some key legal points that you need to address when considering a business startup. It’s best to research and decide these before you actually start selling anything. Otherwise, you risk violating laws in your area.
- Choose the right business structure. The type of business you start will have an impact on your liability and taxes. You should research the pros and cons of different structures such as a sole proprietorship, partnership, corporation, or LLC. If you’re not clear about this, you should consult with a business attorney.
- Register your business. Depending on where you live and what type of business you’re starting, you may need to register with your county, state or other jurisdiction.
- Get any necessary licenses. You may also need a license to start a certain type of business.
- Get a tax ID. An Employee Identification Number (EIN) is necessary for opening a business bank account and paying taxes. You may also need a tax ID for your state.
Open Up a Business Bank Account
When starting a business, one thing you want to do is build your business credit as quickly as possible. Rather than using your personal bank account, open up a business account using your EIN. This makes it easier to apply for business loans and get credit with vendors and suppliers.
These are some of the essential business startup steps that will help you succeed with your new venture. Once your business is up and running and you have accounts receivable, you should consider applying for invoice factoring to boost your cash flow.
Riviera Finance offers small business funding for a variety of businesses and industries across the U.S. and Canada. To see how non-recourse factoring with Riviera Finance can help your business or to learn more about your business financing options, talk to one of our experts.