How2Day: Startup Basics for Starting a Business

Starting-up a business can be exhilarating and anxious time for entrepreneurs, with issues to resolve such as how to finance your endeavor, what to name your business and where to locate your work place. However, with the proper planning and forward thinking, the start-up process will be much smoother with a lot less stress.

Before you begin ordering inventory or printing-up business cards, you'll want to create a business plan. A business plan is the blueprint for your business, the document that will guide how you proceed and how you will eventually operate your business. Think of the business plan as a living document, something that will evolve as your business is growing. Some of the elements of writing a good business plan include a description of your company and how it will operate, a detailed analysis of your product or service and those of the competition as well as financing available and the finances you expect and need to be profitable. You can also add naming the company as part of the plan. All of these elements are necessary as you take the first step in starting your business.

You'll need capital to start your business and, before you find that special location or purchase equipment to make your first product to sell, you'll need to get your financials in order. You'll need to ask some important questions before running-out and asking for cash. Looking at your business model, determine how much start-up money you'll need. You'll want to cover several months' rent or lease of space and/or equipment, payroll and insurance if you are starting a company that will hire employees, and enough money to purchase start-up inventory, goods, office supplies, marketing and advertising, and computer hardware and software. Once you have established how much you'll need, you'll either have to fund the business through your own money, look for partners to invest, or seek out loans and grants from either private, local, state or federal sources.

From zoning permits to federal licenses, you'll need to get your legal paperwork in order before opening your doors for business. Each state has varying rules and regulations, so you'll want to be sure you have the proper permits, licenses and registration needed to conduct business in your state. You'll also want to be certain you have registered for an Employer Identification Number (EIN). You'll also need specific paperwork if you plan on importing and exporting goods, becoming a retailer or are in the food service business. Finally, you'll need to file insurance documentation, including health care, and work-out details to set-up a payroll account.

How2Day