The United States Small Business Administration offers several steps to help Americans start their own small business. Many dream of being their own boss, but few understand the hard work and dedication that a successful business takes. The United States Small Business Administration recommends several steps that potential business owners should take to prepare themselves to make profits and exceeds their goals.
The first and possibly most important step to take when entering the small business realm to map out the future. Before taking the initial plunge, make sure you have a detailed business plan. Everything from financing to products should be mapped out in detail. Fortunately, the United States government has plenty of free resources that offer training.
If you have no business experience, it is extremely important to take advantage of free assistance and training that this organization offers. They can also be helpful for those that might of had successful business ventures in the past. In fact, Forbes claims that about 80 percent of small businesses fail in their first year of existence. It can be for a number of reasons, such as not connecting with potential customers or lack of organization. Educating yourself on popular reasons business fail and how to prevent falling into these traps are key to your business’ success.
The steps presented by the United States Small Business Administration have taken these common pitfalls into consideration, making them the best place to start your business preparation.
Financing your business can be a daunting task, but there are several places to find funding for your ideas. Government-backed loans, venture capital, research grants, methods like factoring invoices, and other forms of aid could be available to you. Also, if you are going to need to secure a business location, makes sure to find a location that will not only attract customers, but also adheres to local laws and keep overhead costs at a manageable level.
There are a lot of legal issues that must be addressed when starting a business. There are several types of ways that businesses can be established. Sole proprietorship, partnership, Limited Liability Company (LLC), corporation, S corporation, nonprofit or cooperative. Depending on the type of structure you choose, it will determine how you will organize your taxes. The most popular of these types of structures is a sole proprietorship because you can create one just by starting the business. The owner uses his personal taxes to report any income or losses. If there is more than one owner, then a partnership would be the equivalent. While more costly and complicated to set up, a LLC or corporation might be the right choice if you have assets you want to protect from any business creditors.
By choosing a certain business structure, you will have to become familiar with which types require certain tax identification numbers, insurances. You will also have to register your business name with the United States government to receive the proper identification.
Depending on the type of services or products you will offer with your small business, you will need to make sure you have the required business permits or licenses. For examples, restaurants that plan on serving alcoholic beverages must apply and receive a liquor license which allows them to legally sell those types of products.
If you plan on hiring employees, you should educate yourself on what you are legally responsible to provide your employees. Workers compensation, unemployment and other liabilities must be in place to comply with state and federal laws.
All of these requirements and planning might seem tedious and even impossible, but it can be done. Writing a detailed and professional business plan can give your small business the foundation that it needs for a successful future. If you find yourself at a roadblock when it comes to preparing the perfect business plan, there are professional services that offer writing help to customize and create the perfect plan for your needs.
There are several resources online to help you build a small business from the ground up. With dedication and research, you can make sure to set yourself up for success. Being your own boss can be extremely rewarding, but remember that it comes with several responsibilities. Lose the fear of failure and dive in to follow your small business dreams.