Starting a new business can be a daunting experience. As overwhelming and scary as it may seem, there is a silver lining. There are people and businesses out there that want to see you succeed. We are one of those businesses. We not only want to see you succeed, but we want to see you flourish. That’s why we came up with this step-by-step guide to get you started on the right foot.
Before You Begin
One of the best business tips for beginners is researching and learning as much as possible. Learning new aspects of a trade, in the case of a small business founder entrepreneurship, is a healthy part of growing and expanding a goal. Some popular alternatives include Harvard Business School Online, a digital division of Harvard University that features week-by-week business track course sessions, and online learning services such as Udemy and Coursera.
The Rosenberg Development Corporation in Texas gives insights into the critical launch items to clarify with your business partners before starting an official organization process. Initially, you will be required to submit several registration forms with the local government in the city and state you live in within the United States. Business application laws vary by city, state, and country, so be sure to check with your local Chamber of Commerce for any suggestions or documentation on the legal process you will need to know about before you begin.
Forming a Business Plan
The first step to launching a business is to begin with a business plan. This business plan is essential to jumpstarting the business accurately and then keeping the business afloat sustainably.
Set Clear Goals
Before you can launch a business, you need to define clear goals. These goals usually focus on the vision, mission, and values of your business. The things that make your business unique and highlight how you can make a significant impact on a customer’s needs are what you want to focus on as you establish the goals and targets within reach.
Size Up the Competition
Sizing up your competition helps your small business to establish its individual strengths over a competitor and to bring these to the attention of the target customer base. Understanding your competitors is key to boosting your competitive advantage, which is why you need to engage in extensive research into your competitors to be sure and understand the areas they are strong, but also the areas they lack in.
Understand Your Target Audience
As you determine your competition, you will also start researching your ideal customer. Learn what the customer’s needs are, what they prefer from a product or company, and where they spend their time online.
Seek Professional Help
After forming the business plan, you will need to speak to two types of professionals to put the right foundation under your business. These professionals have the experience and know-how you should rely on when you are first starting out.
Why You Need a Tax Accountant
Part of starting a small business is determining what type of business you should be. You should register as a formal business and apply for business entity registration paperwork when it is no longer appropriate for you to operate as an individual under the person’s social security number. If your income exceeds a certain bracket each year, the government will expect you to file your taxes under new requirements. This is the time you need to establish yourself with the appropriate compliance documents.
First, you need a tax accountant to help you with the creation of an Employer Identification Number (EIN). When it is time to form a small business, you start growing and need to hire employees, establish a business bank account, and get a business tax ID number, called an EIN by the Internal Revenue Service.
You will also be required to register an operation agreement with the U.S. Small Business Administration. A tax accountant will help you determine the type of accounting system your business should use for its operating agreement and register with the correct name. For example, a Limited Liability Corporation is registered as an LLC with the Smal Business Administration based on its tax accounting structure.
Seek a Lawyer’s Help
Once you have registered as an official business entity, you will also need to speak to a lawyer to begin the legal compliance process based on this tax registration structure. You can access business lawyer services through a legal service index site such as LegalZoom, which provides “fast and free” LLC registration.
Risks vs. Rewards
Before a person launches a business, they should understand the risks and rewards of business operations. Risks include things such as market risks, competitive threats, and changes in regulation, Forbes notes. However, the University of Minnesota notes the advantages of starting a business include things like the freedom to be your own boss, having creative freedom, and reaping the financial rewards of success. Experts with Inc. suggest that a startup tests the waters of the market first by creating a minimum viable product, or a product that is the minimum value needed to engage customers, and then testing it with real users to determine its effectiveness.
Final Business Tips for Beginners
If you are new to the process of launching a business, then one of the best business tips for beginners you will receive is this: solicit professional help early and often. Exploding Topics, a service that investigates business trends, found that 90 percent of small businesses fail, while only 18 percent of first-time founders have success. If any business tips for beginners apply, then it is that starting out with the help of the seasoned professionals who made it is your best bet to ensure that you, too, make it and thrive.
Hiring a lawyer who handles business legal processes, consulting a tax accountant or financial advisor, and joining industry affiliation networks or a credit union are all beneficial ways to formalize your business establishment process and ensure that the correct forms are filed, realistic budgets are drawn, and other vital factors of setting up shop are executed with enough time to satisfy compliance.
Where GreenStar Solutions Can Help
GreenStar specializes in brokering business solutions for your organization. As your small business grows and scales, you will need a professional service in your corner to communicate the shoptalk needs of your business and put you in touch with state-of-the-art service providers you can trust. Contact us today if you are ready to go beyond just getting business tips for beginners and stretch your operations into the pro leagues.