9 Thing You Need to Know Before Starting A Small Business
So, you want to be your own boss? You're not alone—according to the Small Business Administration, over half of Americans either own or have co-owned a small business at some point in their lives. But before you take the plunge, there are a few things you should know. Here's 9 things you need to know before starting your small business.
1. Write a business plan.
One of the most important things you can do before starting your small business is to write a business plan. This document will serve as a roadmap for your business, and will help you secure funding from investors if necessary. When writing your business plan, be sure to include your company's mission statement, product or service offering, target market, growth strategy, and financial projections.
2. Choose the right legal structure.
The legal structure of your business will determine how it is taxed, so it's important to choose the right one from the outset. The most common legal structures for small businesses are sole proprietorships, LLCs, and S Corporations. Talk to an accountant or attorney to help you choose the best option for your business.
3. Get insured.
No matter what type of small business you're starting, you'll need some form of insurance—especially if you have employees. Talk to an insurance agent to find out what types of coverage are recommended or required for businesses in your industry.
4. Register your business with the government.
Once you've chosen your business structure and obtained the necessary licenses and permits, you'll need to register your business with the government—usually with your state's secretary of state office. This is typically a fairly simple process that can be done online or in person.
5 . Find funding
If you don't have the personal savings to fund your small business yourself, you'll need to look into other options like loans from banks or credit unions, crowdfunding platforms, or grants from governmental agencies . Be sure to research all of your options thoroughly before making any decisions .
6 . Open a business bank account .
To further separate your personal finances from those of your business , open a separate bank account for all of your company's financial transactions . This will make it easier to keep track of expenses and revenues , and will also come in handy come tax time .
7 . Promote , promote , promote !
Now that everything is up and running , it's time to start promoting your small business ! Use social media , traditional advertising , word -of- mouth , and whatever other channels make sense for your particular industry . The more people know about your company , the more likely they are to become customers or clients !
8 . Stay organized .
Running a small business can be daunting , so it's important to stay organized and on top of everything that needs to be done . Make lists , use a planner , set reminders —whatever system works best for you! Just make sure you're keeping track of both big-picture tasks (like coming up with new marketing ideas ) and smaller details (like scheduling employee break times ).
9. Celebrate milestones .
Last but not least—don't forget to celebrate when things are going well! Recognizing accomplishments big and small will help keep morale high amongst you and your team members . After all , running a successful small business is no small feat ! Conclusion: If you're thinking about starting a small business, there's a lot to consider—but it can definitely be worth it in the end! By taking care of things like writing a detailed business plan, choosing the right legal structure, securing funding, and promoting effectively from day one , you'll put yourself on track for success . Of course , it won't always be easy —but with hard work (and maybe a little bit of luck) anything is possible ! Good luck !
