You will want to begin with selecting what type of business you would like to run. Try to consider what its effects will be on your taxes and liability.
- Often, a simple and beneficial option would be for you to be the only business owner through sole proprietorship. By becoming a sole proprietor, you are basically registering your business for legal and tax purposes, and this means that you will also keep all of your profits after taxes but be held liable for any damages or losses. You could also set your business up as a LLC, or limited liability company. This can hold you less liable for any losses or damages than if you were to become a sole proprietor. If you are starting the business with a partner, consider a general partnership because it provides a basic entity. If you do not want your partner to have liability or limit his or her liability, you can always give them limited partnership. Determining how to structure your business can be complicated, and it is often in your best interest to seek the advice and counsel of an experienced business contracts and structure lawyer.
- Before starting a business, you should always do your research on your competition. It is crucial that you know exactly who your top competitors are in the area. Research how they conduct their business and what you can learn from their failures and successes as a business. You can do this by talking to customers and employees within the business, or visit some conferences that they are attending and speak with them directly (but do not give away the information that you are beginning the same kind of business).
- Choose your company name and do research to understand your demographic better. Knowing your target audience will give you leverage over many similar businesses. Understanding who you are selling to is vital to a successful company because without it, your product will not sell.
- Review market research like business and legal reports. This will help you to prepare a business plan that will help you make more money. A business plan is essentially a roadmap that will lead you to success. It will include your budget, your projected growth, your plans on how you will generate your revenue, and will outline what your company brings to the table for investors. How your company’s business plan will look depends on your industry, so reviewing other business and legal reports will help you shape your plan in a more attractive manner.
Thanks to friends and contributors from Simba Information for their additional insight into business and legal reports.