Many
people seek the best formula to start a business. From seeking financial
advice, sourcing loans, and many other start-up activities, many lack the
essentials of starting a business. Primarily, starting up a business requires
you to plan, make decisions on finances, and undergo legal steps. This article
provides you with an easy step by step guide in opening up your business.
Step 1: Create a business plan
A
business is not viable without a suitable business plan. A business plan
enables you to establish a focus for your business niche. Furthermore, it lets
you stick to your set timelines. Your business plan should propose your
expected financials in case you will use it to seek a business start up loan.
Step 2: Source training
Many opt
for business ventures in which they lack expertise. In that case, it is safe to
seek further knowledge of how to run such a business. If you are aware of what
is required of you, you can also check out refresher trainings just to refresh
your memory. Such training can be sourced from your local business groups and
schools among other institutions.
Step 3: Choose a location
Location
is an essential component of any business venture. Locate a place close to your
customers. Also, put into consideration laws governing that location to see if
they are favorable to your business ventures.
Step 4: Source financing
As it is
with any business, start-up costs constitute an enormous sum of money. If you
are not able to manage the costs, it is wise to seek a loan from a bank or a
micro-finance institution. Furthermore, there are grants and venture capital
specific to some businesses. A good research can unearth such sources of
finance.
Step 5: Structure of business
Do you
want to be the sole owner of your business or enter into a partnership?
Determining the legal structure of your business is essential in realizing how
best you will run the business. Also, it will enable you gauge your financials
in a proper manner.
Step 6: Registration of business
After
identifying the structure of the business, it has to be registered. Seek
business requirements from your local registrar of business. This constitutes
choosing a business name that is unique to your services among other processes.
Step 7: Tax identification number
Every
business is required to pay tax. Therefore, consult your local authorities for
tax identification number that you will need specific to your business
operations.
Step 8: Register with other taxing agencies
Taxes
vary. According to your business, find out which other taxes you are required
to pay and register accordingly.
Step 9: Source operating license and permit
Before
your business commences, you are required to showcase your operating license
and permit. Information on these documents can be collected from your local
business registration department. These should be obtained in due course prior
to the business opening date.
Step 10: Understand your roles
As a
business owner, you automatically become an employer. Therefore, it is
important for you to be conversant with your roles and responsibilities as an
employer. In this case, you should be aware of the procedure of hiring
employees and further requirements to that regard. Also, for management
business purposes, you can compile rules and regulations you require your
employees to adhere to at all times.
Having followed all these 10 steps properly, you are now set to take
your business to a new level.
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