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The core basics for starting a business are your business name, business structure, business registration certificate and all your other licenses. You must take the proper legal and regulatory steps in each of these four areas before you launch your business. Obtaining external funding and putting together a business plan are also smart moves, but they aren’t legal prerequisites.
10 steps to start your business:
According to the U.S. Small Business Administration, most micro-businesses cost around $3,000 to start, while most home-based franchises cost $2,000 to $5,000. Starting a business may be an exciting process, but it costs money.
When determining business startup costs, it’s important to be realistic. Startup costs will include equipment, incorporation fees, insurance, taxes, and payroll. Although startup costs will vary by your business type and industry — an expense for one company may not apply to another. For example, a brick-and-mortar business will need to pay to rent a separate business location, unlike a home-based online consulting company.
Each person’s ideal timeline for starting a new business will be different. Start a business only when you have enough time to devote your attention to the launch. If you have a seasonal product or service, then you should start your business one quarter before your predicted busy time of the year.
Spring and fall are popular times of year to launch for nonseasonal companies. Winter is the least popular launch season because many new owners prefer to have their LLC or corporation approved for a new fiscal year.
An LLC creates a shield between business liabilities and personal assets. This means, in most cases, a lender can’t force the owner to repay a loan taken out by the business. Nor can someone awarded damages in a lawsuit against the business require the owner to make good on it.
Don't do it alone.
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