There are many things to consider while opening your business, especially if it is your first time. I will assume that you are already extremely passionate about the service or product you are going to market and sell.
I am going to assume that you have performed some market research.
I am going to assume you already have a business plan.
I am going to assume you have some initial funds, whether your own capital or someone else’s.
Although I started off these last few sentences with “I am going to assume,” it does not mean that people do not overlook these beginning stages. Those beginning stages will set the foundation for the launch. This article dives into what is next.
Choose the name of your business. This can be something that prevents people from starting; they can’t think of a good name for their business. Do not let the name hold you back from taking action, although it should take some thought and consideration. I would strongly suggest coming up with a name where the website domain and social media handles are available and where the Trademark (USPTO) on the name will not compete with what you are looking to do. This will save you a lot of time and effort in the future.
Determine where your business will be organized. Research this ahead of time. If you are opening a brick and mortar location, you may not have a choice, but if you are opening an online store, your company’s registered location will impact taxes, legal requirements and income status. Do not overlook this.
Identify the structure of your business. Are you in a partnership? Will the company be a S-Corp? LLC? This decision will impact your taxes, liability and income.
Get your business registered through your local state and federal government. This does not take long at all to do, so make sure to do this step. While you are at it, hop onto irs.gov to get your federal and state tax ID numbers. You will need this for taxes, applying for business loans, etc.
You must obtain proper permits and licenses. The requirements will vary state to state so make sure to look on the government website on the state in which the businesses is registered under. Make sure to acquire the proper insurances you will need in order to operate your business such as liability and equipment insurances.
Open a bank account! You want to keep your business transactions separate from the money flowing through your personal account. Not opening a bank account from the beginning can cause a lot of headaches later on. I would strongly consider hiring a professional accountant to keep your books. A professional will help you save a lot of money and check any blind spots you have while accounting for profit and losses within your business. Do not do this on your own if you are not an accountant.
These are very general steps, but nonetheless right to the point. Do not let this little amount of front-end work kill your action. If you have an idea that can solve people’s problems, take action now. If you have felt this mini-article has helped you in any way, please share it with a friend. If you have more questions for us, please do not hesitate to reach out to us at [email protected]
Jared Saavedra, MS, CSCS, PES, CPT
CEO, Founder, Athlete Ready Global