7 Steps To Starting Your Business

starting your business

How to Start A Business

If you think starting a business is really complicated and includes numerous complex procedures that take a whole lot of time, think again! This exact thought prevents a number of inspiring would-be entrepreneurs to actually go ahead with the business plan and attempt to turn it into reality. They simply tend to feel that it’s not worth it to go through all that for an idea for a business that might not even succeed.

It’s okay to feel like that. You’re not the only one out there who gets demoralized thinking about the complexities of administrative and legal activities that one has to carry out in order to start a business. However if you keep on getting overwhelmed with that fear, you will never be able to start your dream business. And you wouldn’t want that, would you?

So how do you get over this overwhelming feeling? The success factor lies in taking the first step. 

Company Name

Of course it goes without saying that you need a really good and appropriate name for your business. A company name is a kind of reflection of what your business does. So undoubtedly it has to be good. Thus, you need to put in a bit of effort and time in this company naming process. 

However do not make the mistake of flooding all your time into this very first step to find that perfect one name for the company. The more you squander away time in finding the best name, the longer you take in actually starting your business.

So for a given time, stop fussing about naming factors mentioned in marketing books and sites such as branding, positioning, promotions and URLs. There’s plenty of time to think about these in the future. This isn’t the time.

Employer Identification Number

Next in line to think about is the Employer Identification Number (EIN). This is basically the federal tax number that is utilized in order to recognize your business. The good part is that you don’t necessarily require this number unless you plan on having employees in your company or unless you think about forming any of these 3: corporation, LLC or partnership.

However, even if you don’t require one, it’s always better to get yourself one to be on the safer side. Why take that hassle? Because it isn’t a hassle at all! It is absolutely free and quick. What’s more is that it gives you an added advantage. When you don’t have an EIN, you have to use your social security number for tax issues, which can lead to risks like identity theft. With EIN, you don’t have to worry about that.

Trade Name 

A lot of entrepreneurs choose to operate under their own name. However, if you don’t fall into this category, you might have to register a trade name if your locality has this law. But don’t worry, your request will generally be accepted right on the spot.

Business License 

A business license is usually a must according to county or city rules and regulations. You can fill up the form for this license within just a few minutes. This is one of the times when making use of your EIN for identifying your business is safer and smarter than using your social security number to do so.

Other Permits 

Don’t forget the local permits you might have to take before going ahead with your business. Every region and area has a different set of requirements, so it’s best if you thoroughly check yours. Ask around and you’ll know. And then go through the required steps to acquire them.

Business Bank Account

If you don’t want to end up screwing your business accounting, don’t mix up your personal and business funds. That is such a huge, yet commonly made mistake! So avoid that, and simply go for a business account that you can use for all of your business deals and transactions. Here again, remember to use your EIN for safety instead of social security number. Also make sure you use that account only for business related issues and nothing else.

Accounting Spreadsheet

Lastly, remind yourself that there’s a lot of time for you to fuss about complex advanced business accounting software later on. You don’t need all that right now. All you need to fulfill your basic accounting needs is to create a simple spreadsheet where you can put in details about your money spent and money gained. Opt for simple bookkeeping at the beginning with only expenses and revenue columns. You can later on include other elements when the time comes.

Voila! Now you have all the documents required to start a business, so go ahead and do so!

Image by: Steven Depolo