How to Start a Business: Checklist for Starting a Business

Start a Small Business
Owning their own business is a dream many Americans share, and learning how to start a business is not that difficult. There are certain steps that must be taken for legal and financial purposes, and other aspects that need to be addressed to ensure that you will be successful. The following start business checklist should serve as a rough guideline; your specific needs may vary depending upon the type of business you plan to operate.

How to Start a Small Business

Recognize why you want to start up a business – Perhaps you’re tired of working for someone else and want to be free of the nine-to-five rat race. Maybe you have an idea for a product or a service for which you perceive there is great demand. While some reasons may be better than others, knowing why you want to start a small business is the first step in the process.
Decide on the type of business you want to operate – You could buy a franchise, purchase an existing business, or start something from scratch. Each method has its positives and negatives, and your task is to choose which will serve you best – from the perspective of temperament as well as financially.
Do plenty of research – Once you have an idea of the kind of small business you want to start, look more closely at the field to see if it offers you the kind of profitability you hope to achieve. Is the product or service in demand? How intense is the competition? What is the average profit margin, and will that give me the money I ’m hoping to gain? How long will it take before I’m successful?
Review your financial circumstances – The research you do above will help you better comprehend what sort of money you will need to start a business. Next you need to examine your own finances and figure out where the money will come from. Do you have a nest egg set aside? Is it possible to tap into your home’s equity? Can you qualify for a small business loan? Do you expect to bring in outside investors?
Create a business plan – Because most people do not have the cash it takes to pay for a complete business startup, potential lenders or investors will want to see your business plan. This is a roadmap of your expectations and abilities, along with an analysis of the business you expect to build.
Create a marketing plan – This will likely be part of your business plan, but it should also be capable of standing alone in order to provide a pathway to sales success. A good marketing plan contains information on the marketing strategies you expect to employ, and what sort of advertising you will use to promote your small business.
Find your funding – With the aforementioned documents in hand, it’s time to dredge up some capital for your enterprise. If you expect to secure a bank loan as part or all of your startup costs, look closely at the possibility of a loan guaranteed by the SBA (Small Business Administration). If you belong to a credit union or have been a military veteran, these avenues to money are worth exploring as well.
Choose a corporate name and a domain name – If you are buying a franchise or an existing business, this step is probably unnecessary. But for a new business, this is perhaps one of the most important things you will do. Your Secretary of State’s office can tell you if the name you propose is available, and any number of domain registries on the Web can help you select the best possible Internet address. Some excellent advice: Even if you’re not quite ready to use your online presence, still register the domain name immediately.
File the proper paperwork with the Secretary of State’s office – Call upon the services of a business attorney and a CPA to help you decide whether you wish to form a sole proprietorship, a partnership, a corporation, or an LLC.
Contact your state and federal tax services to obtain a list of the paperwork you will need to file – Make sure to note all filing deadlines in order to avoid paying penalties.
Get ready to open for business – Last minute preparations include finding a location from which to operate, filing all the proper legal occupancy documents, hiring and training employees (if that’s part of your plan), opening a bank account, having business cards printed, preparing your sales materials and signage, and look into joining a local merchant’s association to promote cross marketing opportunities.