Congratulations! You have made the decision to pursue your dreams and join the millions of Americans in living the entrepreneurship dream! But now what? With so much to consider and put into place…..where do you start?
First, you must register your entity with the Secretary of State in all states you will be domiciled from. But in order to do that, you need to decide how to structure your company for success. This is a LEGAL consideration and you should never choose your entity type prior to speaking to an attorney. Launch by LegalShield is a great way to get affordable attorney advice and have a company fill out and file all necessary business documents for you to get started.
Next, calculate your anticipated start-up costs. Understand that as a business owner, you may not have an income to pay yourself for some time as well. Make sure you are financially ready for the next several months. There are rarely loans available to new ventures, so if you need financing, you may need to consider reaching out to friends/family to loans or investment opportunities.
Now you are ready to open a business account. Choose a bank that has free checking and is supportive of its business account holders. Try to apply for a business credit card or line of credit to help you during the first few months. Make sure you are using your business account for ALL BUSINESS EXPENSES and you are not using your business account for personal expenses. This is called commingling accounts and is ILLEGAL.
Reach out to an insurance professional to determine what types of coverages are recommended for your business type and GET INSURED! Protect your hard work and investment! It may also be required by law to carry insurance depending on the industry or type of structure you chose for your company.
Educate yourself about all aspects of running your company. You need to have at least a basic knowledge of marketing, financing, and managing your company even if you decide to outsource some of those services. Start with your local SBDC to see what low-cost workshops or free one-on-one consulting they offer in these areas. Then, find knowledgeable business partners to help you with the tasks that you feel would better be handled by others. We offer bookkeeping, payroll, and marketing services!
Develop a business plan so that you can track your company goals and progress towards those goals. Update your financial projections monthly and continually “work” on your business development. Running your business is a continual process that may require you to evolve in order to be successful. If you get stuck, reach out to a business coach or other professionals for assistance.