Launching a New Business
Where Do I Start?
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Starting a business requires time, effort, and dedication; so, choosing an idea that aligns with your interests, skills, passion and goals is critical. Your business speaks to who you are, therefore, you want to create a distinctive brand identity, including a logo, color scheme, and overall design, that reflects your style, business values and appeals to your target audience.
It’s imperative to create a professional website and establish a presence on relevant social media platforms to reach your target audience, showcase your products or services, and build credibility.
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Yes, starting a business is a comprehensive process but it’s also one of the most significant and rewarding experiences you can have.
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But where do you begin?
There are several ways to approach creating a business, however, to improve your chances of success, follow our 8-step guide on how to start. [The number 8 means new beginnings]
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We will walk you through each step of the process, from your business idea to registering, launching, and building a thriving successful business.
First things First…….
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Start With A Self-Assessment
What is Your Why?
Reflect on your values, and personal goals.
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Identify Your Purpose
o Do You Want to Help Others?
o Do You Want to Leave a Legacy?
o Do You Want to be a Positive Impact in Your Community?
o Do You Want Financial Freedom
o Do You Want a Flexible Lifestyle?
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Consider The Following Questions
o What are You Passionate About?
o What Would You Do Without Pay?
o What Motivates and Excites You?
o What Gives You Complete Satisfaction?
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Step 1 Write It Down
List all your hobbies, interests, and the activities you enjoy in your free time. These interests will provide a starting point for brainstorming business ideas.
Step 2 Does it Make Sense / Cents
Evaluate your skills, knowledge, and experience. What are you good at? What skills have you developed through your education, career, or hobbies? Consider how you could leverage these skills in a business context.
Step 3 Determine Your Business Idea
Narrow down business ideas that align with your goals and values. Once you've considered these factors, start brainstorming potential business ideas based on your interests, skills, and purpose. You can also research existing businesses and industries to identify gaps or opportunities for innovation. Remember that your initial idea does not require perfection – it can evolve and change as you learn more about your target market and refine your business model.
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Step 4 Educate, Empower and Prepare
After settling on a business idea, invest in yourself by attending workshops or networking events, and consider seeking professional assistance from a mentor or business coach. Be prepared to spend time and effort into validating your concept, conducting market research, and developing a detailed business plan to set your business up for success. Remember obtaining advice from experienced entrepreneurs, or consultants to help guide you through the Business Plan process will position you for funding and potential bank assistance.
Step 5 Determine Your Business Structure
Whether you operate as a sole proprietor or a C corporation, it’s important to choose the correct business structure for your startup. This impacts several money matters, such as your:
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Taxes
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Financing
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Compensation
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Insurance
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Some common business structures you can choose are:
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Sole proprietorships
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General partnerships
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Limited liability companies
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Limited partnerships
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C corporations
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S corporations
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Let’s quickly look at the Pros & Cons
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LLC
An LLC limits your personal liability for business debts. LLCs can be owned by one or more people or companies and must include a registered agent. These owners are referred to as members.
Pros
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LLCs offer liability protection for the owners.
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They’re one of the easiest business entities to set up.
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You can have a single member LLC.
Cons
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You may be required to file additional paperwork with your state on a regular basis.
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LLCs cannot issue stock.
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Depending on our state you may need to pay annual filing fees.
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Limited Liability Partnership (LLP)
An LLP is similar to an LLC but is typically used for licensed business professionals such as an attorney or accountant. These arrangements require a partnership agreement.
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Pros
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Partners have limited liability for the debts and actions of the LLP.
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LLPs are easy to form and don’t require much paperwork.
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There’s no limit to the number of partners in an LLP.
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Cons
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Partners are required to actively take part in the business
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LLPs can’t issue stock.
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All partners are personally liable for any malpractice claims against the business.
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Sole Proprietorship
If you start a solo business, you might consider sole proprietorship. The company and the owner, for legal and tax purposes, are considered the same. The business owner assumes liability for the business. So, if the business fails, the owner is personally and financially responsible for all business debts.
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Pros
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Sole proprietorships are easy to form.
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There’s no need to file additional paperwork with your state.
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You’re in complete control of the business.
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Cons
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You’re personally liable for all business debts
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It can be difficult to raise money for a sole proprietorship.
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The business may have a limited lifespan.
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Corporation
A corporation limits your personal liability for business debts just as an LLC does. A corporation can be taxed as a C corporation (C-corp) or an S corporation (S-corp).
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S-Corp status offers pass-through taxation to small corporations that meet certain IRS requirements. Larger companies and startups hoping to attract venture capital are usually taxed as C-corps.
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Pros
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Corporations offer liability protection for the owners.
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The life span of a corporation is not limited.
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A corporation can have an unlimited number of shareholders.
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Cons
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Corporations may be subject to double taxation
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They’re more expensive and complicated to set up than other business structures.
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The shareholders may have limited liability.
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Before you decide on a business structure, discuss your situation with a professional business accountant and an attorney, as each business type has different tax stipulations that could affect your bottom line.
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Please see link below to set up tax structure consultation with John A Mardenborough, Mardenborough & Associates LLC
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Step 6 Develop A Business Plan
A well-thought-out Business Plan is essential for outlining your business goals, strategies, and operations. It helps you set clear objectives and serves as a roadmap for your business's growth and development. After you decide on the most suitable legal structure for your business, such as a sole proprietorship, partnership, LLC, or corporation; register your business name, obtain necessary permits and licenses, and comply with all applicable federal, state, and local regulations.
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Please see Department of State Links Below
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If you already have a vision for how to bring your business idea to life, you may be wondering, “why do I need a business plan?”
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When you create a business plan, you describe every aspect of your business in a formal document. This lets other people understand what you do, what your objectives are and what strategies you have in place to achieve your goals.
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Your plan doesn’t have to be elaborate, but it’s important you write a readable business plan. The 10 main components of a business plan include the following:
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Executive Summary
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Business Description and Structure
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Mission and Goals
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Market research and strategies
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Marketing Plan
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Products or Services
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Management and personnel
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Background Summary
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Financial Plan & Documents
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Exit Strategy
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Your industry and market are always changing, so you should revise your plan as needed. Regularly revising and refining your plan is a good idea to ensure your business remains competitive.
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Please see link below to discuss and draft your business plan with Michelle D Mardenborough, Infinite Possibilities Inc.
www.infinitepossibilitiespa.com
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Step 7 Finance Your Business
You can’t start your business without money. Your market research can tell you how much you’ll need to get your business up and running. If you don’t have enough saved to start, you may need to raise more money or borrow capital. Before you start business funding, it’s important to have the right foundation. You will need to open a business bank account to separate your personal and company assets. You may also need to buy record-keeping and accounting software to keep your business finances in order or partner with a professional business accountant.
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When you’re ready, here are some methods you can use for your startup financing:
1. Apply to local angel investors.
2. Request a small business loan or grant.
3. Use a microlending program.
4. Ask friends and family for a startup loan.
5. Borrow from your 401(k).
6. Become a member of a startup incubator.
7. Read about alternative funding for startups, like crowdfunding or peer-to-peer lending.
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To learn more about financing your new business venture please see link below to set up tax structure consultation with John A Mardenborough, Mardenborough & Associates LLC
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Step 8 Partner with a Mentor
With a mentor who has knowledge of all levels of entrepreneurship and charitable organizations and credible experience in launching and operating a business similar to the one you're interested in. A mentor can provide personalized guidance, advice, and support throughout the process of starting and growing your business. It’s important to continuously learn and adapt. A mentor will hold you accountable to stay informed about the latest marketing trends, tools, and best practices by encouraging you and suggesting industry blogs, webinars, and which professional organizations to join. A good mentor also supports you in developing a never quit, entrepreneur mindset, which is crucial for overcoming challenges, staying motivated, and achieving success in your business endeavors; they will help you cultivate resilience and perseverance to help you bounce back and keep pushing forward, even when faced with the most difficult adversity.
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Please see link below to discuss and draft your business plan with Michelle D Mardenborough, Infinite Possibilities Inc.
www.infinitepossibilitiespa.com
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Finally, stay informed about emerging trends and technologies to identify potential business opportunities. Be certain to network, collaborate, and attend industry events and conferences, such as Elevate, Launch and entrepreneurial symposiums and seminars provided by clicking here. Entrepreneurship can be challenging and often requires overcoming setbacks and obstacles.
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I encourage you to always stay optimistic and maintain a positive attitude, even during difficult times remembering that “All things are possible with God!”
Launch your company with Infinite Possibilities we provide comprehensive business formation services at an affordable cost. If you need more information, please complete the contact form below.