Politics and Business
The Entrepreneur’s Guide to Forming and Incorporating a New Business
Is your road map to making your business plans become reality by teaching you exactly how to build a successful business from the ground up. This book will address all of the issues that are important to you as you consider starting or moving forward with an existing small business. Creating a new business is not only about ideas, it’s also about what steps need to be taken post-idea to make sure that idea becomes profitable and scalable. Therefore, this guide will give you all the necessary information to do so.
Write A Business Plan
Writing a business plan is essential to any new business because it helps keep everyone on the same page and provides you with a foundation for making important decisions. It also serves as proof that you’ve done all of your homework before launching your company, which can be crucial when applying for financing. When writing this document, one must put together the unique selling proposition (USP), value proposition (VP), target market, and go-to-market strategy of the company. A USP is basically what makes your product or service different from all others out there while a VP explains how your product or service will make some aspect of their life better. Similarly, a target market is the group of people you are trying to sell to while a go-to-market strategy explains how you plan on making sales.
Regardless of which state you choose to form your business, the first step is figuring out how to properly register it. The registration process can seem like a daunting task to the first-time founder. Fortunately, all states have an online system in place for registering your new business so you don’t have to waste your time going into an office. When registering your business for the first time, as suggested by the business professionals from Sleek Tech Pte Ltd, it might be a good idea to consider hiring a legal advisor to help you through this step. Whether it’s your first time or tenth, having an expert guide you through the process can help you avoid any issues that could affect your business in the future.
Building Your Business Structure
Once your business is registered, it’s time to determine what type of entity you would like it to be and then proceed with forming that type of entity. There are several types of entities including corporations, limited liability companies (LLCs), partnerships, sole proprietorships, and non-profit organizations. Each type offers its own set of benefits for different types of businesses so there is no “one size fits all” solution to which one you should choose. For the majority of entrepreneurs, LLCs or corporations are the most common types because they offer personal asset protection for owners and provide tax benefits. Many business professionals believe that small businesses should first start as sole proprietorships or partnerships and then convert into an LLC or corporation when the business starts to grow.
For your business to hire employees and open a bank account, it needs an Employer Identification Number (EIN) also known as a Federal Tax Identification Number. If you plan on staying as a sole proprietor or partnership, then this number will be allocated by your Secretary of State during the registration process or can be requested at any time after that from the IRS website. Also, if you plan on incorporating your business, you will need to obtain an EIN for it to be recognized by the IRS. When applying online, you will find that there is a cost associated with requesting one. If this is the case, then you should opt to receive your number via snail mail instead because it only costs $4 when requested that way.
While some startup costs can be covered by personal savings, most entrepreneurs need to get a business loan to cover the rest. As with any loan, you will have to provide a certain amount of collateral for your application to be approved. This typically comes in the form of physical assets like real estate or vehicle titles but you could also offer up intangible assets if they are easier for you to part with (e.g., intellectual property). Also, the lender will likely require that someone with good credit co-sign your loan and may even conduct an in-depth examination of your finances (i.e., tax returns) to determine whether or not you are a worthy candidate.
Having the proper insurance for your business is vital. Not only will it protect your company from lawsuits and other unforeseen circumstances, but you’ll also need to make sure that all of your staff is protected as well. If someone gets injured on your premises or products are damaged due to fire or weather-related events, then having adequate protection can help cover all those costs. It’s recommended that every business owner speaks with an insurance agent before starting their new venture so they know exactly what types of risks they’re taking on and how much coverage they need to have in place.
As you can see It is very important to familiarize yourself with the steps involved in starting a business and what to expect going forward. While every business is different and requires a unique approach, this guide will give you a solid foundation to build your company upon.