If you’ve decided entrepreneurship is the right career path for you, start your business on the right foot. Here’s a checklist to help you get things going.
So, you’ve decided to go into business for yourself! You have a fantastic idea that’s sure to turn a profit—now it’s time to make that idea a reality. If the prospect of starting your first small business has you feeling a little lost, use this handy checklist for inspiration as you prepare to launch.
Name Your Company
Before you can develop a business plan or begin a loan application, you’ll need to create a memorable name for your business. That name should be unique enough to stick in people’s minds while clearly demonstrating what your business does.
Choose a Legal Structure
The legal structure you choose for your business determines how much you’ll pay in taxes, as well as the type of management you’ll need and how much you can fundraise. Some folks opt for a sole proprietorship or a partnership when just starting out. Meanwhile, others incorporate as a Limited Liability Company (LLC) to protect their personal assets from liability.
Secure Funding
Starting a business is a rewarding venture, but an expensive one nonetheless. Where are you going to get that money?
Many folks take out small business loans in the early days of operation, then factor loan repayments into their monthly budget. Others opt to crowdfund or seek angel investors for a financial boost, while some choose to self-fund with their savings or retirement accounts.
Buy Business Insurance
Insurance is one of the most commonly overlooked startup costs when getting a business off the ground. It’s not optional, though! Various types of insurance protect your business from going under if you are sued, or if your property is damaged or stolen. Invest in the following policies for high-quality coverage:
- General liability insurance
- Business income insurance
- Commercial property insurance
- Data breach insurance
Obtain Relevant Licenses and Permits
Depending on the type of business you’re starting, you may need permits or licenses in order to operate legally. Look up the laws in your state that are relevant to the type of business you plan to do.
For example, if you’re a doctor starting your own private practice, you’ll need a license to practice medicine in your state. The same concept applies to many other types of business, from accounting to cosmetology. Meanwhile, if you’re opening a retail business, you will need a seller’s permit in order to sell physical products.
Ready to start your first small business? Use this handy checklist as a to-do guide before you start hiring employees or renting office space. These tips will lay the groundwork for success.