Business Advancement Center

 

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Launching your own company can be daunting, but breaking it down into steps will make the experience simpler. Instead of guessing where to begin and spinning your wheels aimlessly, this information  can help your vision take form and turn into reality.

Launching

Ready to Grow?

Products and Services

Ideally, when starting an online business you already have an idea of the product(s) or service(s) you wish to sell online or the market you wish to enter. Research existing companies within your chosen industry; note what current brand leaders are doing well (and how you could improve upon them); consider ways your business can offer something other businesses don’t (or provide it faster and cheaper than before), then this is an indication that you can move ahead with creating a business plan.

Refine Your Idea

To refine your business idea, identify your “why,” your target customers, and your business name.

Once your idea is in motion, the next step should be defining its purpose, selling to who and financing startup costs – these questions should all be covered in your business plan.

New entrepreneurs often make costly errors by diving headfirst into business without fully considering all aspects of it first. You must identify your target customer base; who are they going to buy your product or service from and is there evidence of demand for your idea?

Conducting extensive market research on your field and demographics of potential clientele is integral to developing an effective business plan. This may involve conducting surveys, organizing focus groups or researching SEO/public data.

Assess Your Finances.

Ask yourself these questions: “How much revenue must I generate to cover all expenses?” “Which products or services turn a profit and which are sold at a loss?”

What are my fixed rates, variable costs and total costs? What physical goods cost how much and where did labor costs fall within that figure? Furthermore: As part of your strategy to lower fixed costs or decrease variable costs per unit to boost sales: how can I reduce overall fixed costs, reduce variable costs per unit and improve sales performance?

 

Create a business plan

Market research helps you understand your target customers — their needs, preferences and behavior — as well as industry dynamics and competitors. Many small business experts advise gathering demographic information as well as conducting a competitive analysis in order to gain a better understanding of opportunities and barriers within your market.

Small businesses that stand out have products or services that distinguish themselves from the competition, creating an edge and communicating unique value to potential customers.

As part of your business plan, it’s wise to include an exit strategy. Thinking through how you’ll eventually exit forces you to look forward.

Determine Your Break-Even Point

Financially, you must conduct a break-even analysis, carefully consider expenses and funding options, and choose an ideal bank for your business.

Before you register a company, it’s crucial that you determine its legal structure. Your choice can impact everything from how and when you file taxes to the scope of personal liability should anything go awry.

At the core of it all lies your own decision of which entity type best meets your current and future business needs and goals. Learning about all available legal business structures may help, as is consulting a legal or business advisor for advice if necessary.

Survival Tips for New Startup Entrepreneurs

Too often, startups waste their funds on things that are unnecessary,” noted Jean Paldan, founder and CEO of Rare Form New Media. For example, we worked with one startup with just two employees that spent an exorbitant amount on office space that would accommodate 20.

 They also leased an expensive high-end printer suited for 100 people; its key card system allowed tracking who printed what when. When starting up your own business, use as little money as possible on essential expenses, leaving luxury purchases until later on when established.”

What Type of Business Should You Start?

Did you know? In order to establish your business legally, it’s essential that you select an appropriate legal structure – for instance a sole proprietorship, partnership, corporation or LLC.

Most states mandate you acquire a DBA certificate if your general partnership or sole proprietorship operates under a false name. Contact or visit your county clerk’s office for details of specific requirements and costs, typically there will be registration fees associated with applying for a DBA.

EIN

After you register your business with the IRS, it may be wise to apply for an employer identification number (EIN). Although this isn’t required of sole proprietorships with no employees, applying may help keep personal and business taxes separate or minimize hassle should hiring occur later on. The IRS provides a checklist to determine whether an EIN will be necessary; if needed you can register online free.

Business Registration

Register with the government in order to officially register as a business entity. Corporations require an articles of incorporation document, detailing your name, purpose, corporate structure, stock details and any additional pertinent details about your company. LLCs typically need an operating agreement in addition to an articles of incorporation document.