Under no circumstances is it difficult to start and grow a business. Those who dare to start their own company during a global epidemic face all the usual challenges – conducting research, finding funding, registering with the government, building a brand, and more – state-wise restrictions on new barriers have been presented for social balance.
You need to think carefully about your business plan and design to know what it will be like today and in the post-code world.
In this plan, we will track your business from the start-up planning stages to your start-up date and beyond.
Planning your business
1. Conduct market research
Conduct some market research to understand specific consumer behavior, pain points, and market trends in the industry of your choice, so you can see where your potential fits. This is especially important depending on the current economic climate and specific consumer activity. Lifestyle changes in the light of COVID-19.
2. Write a business plan
Your business plan is essentially a roadmap for your start, which will keep you on track and guide you throughout your journey. This document can be as simple or comprehensive as you like, but most of all it has the following elements:
Executive Summary. A brief background of your company
Mission Statement. A short statement explaining the purpose of your business.
Market analysis. Comprehensive analysis obtained from your market research.
Company Description. The breakdown that your company solves and why it is unique.
Organization and management. List of employers and officers, as well as chief staff.
Marketing and sales. An overview of your strategy to target customers based on your market research.
Service or product range. Details of your products and services and how they are delivered to customers. Request How much funding do you need and why, and how do you plan to repay the borrowed money.
Financial information. Estimates including cash flow statement, income statement, balance sheet, collateral, and current cost.
3. Implement trademark and business name search
By visiting the United States Patent and Trademark Office, you can do a trademark search to make sure your potential business or product name is not already registered as someone else’s intellectual property.
You should also search the database of businesses registered in your home state. Be sure to search for similar names (only your exact names) to avoid confusion in your market.
Register your business
4. Select and enter your business name
Once you have chosen a name that represents your business (and no one else will use it), you can protect it by registering it.
5. Choose your legal structure
When you officially register your business, you must also choose a legal structure. There are types to consider, and the choice you make will have an impact on how you work, how you are taxed, and how business decisions are made.
6. Register your business with the appropriate local authorities
To register your business, you must first consider its structure and location. Registration is not required for sole proprietors who do business under their name.
Besides, most small businesses only need to register their business names with state and local authorities, but understand the requirements of your state before proceeding with the operations of your business.
Registered with the Federal Government. You can register your business with the federal government to obtain your trademark tax-free status. However, if you have an S Corp, you will need to file Form 2553 with the IRS.
Registration with the state. Some states allow you to register your business online, while others require you to mail and physically assign paperwork. You must register with the Secretary of State, the Business Bureau, or the Business Agency office.
7. Get the employer identification number
If you want to hire employees, you need to apply for an employer identification number (EIN), which is the social security number for your business. Even if you do not hire employees, you still need an EIN – if you are not the sole employer, you will need to open a business bank account or credit card.
8. Apply for any applicable licenses
Small businesses in some industries require licenses and/or permits from federal and/or state agencies.
Federal license or permit. Some functions may require a federal license or permit, such as selling alcoholic beverages, engaging in wildlife-related activities, or disseminating information to radio, TV, cable, and more.
State license or permit. There are licenses or permits for the business of construction, dry cleaning, food service, and similar activities.
Sales tax license. The sales tax on goods sold by e-commerce retailers has been the talk of the town since the 2019 Supreme Court ruling in South Dakota. Wafer, which provides the ability to collect sales tax in a fixed amount from online sellers outside the states.
As traditional brick and mortar retail enter the online realm, e-commerce retailers selling their national consumer base should check sales tax licensing laws in developing states with their buyers.
Financial assistance to your business
9. Decide how you will fund your business
Many business owners apply for loans to finance their startups. Before doing so, you need to decide which loan is right for you and your business.
10. Open a business bank account
You want to have a separate bank account for your business to ensure compliance and security. When looking for the right account for your business, choose one with lower fees and better benefits. Internal incentives, as well as introductory offers such as checks, savings, and interest rates for credit lines.
You will also want to see the transaction, advance cancellation, and minimum account balance charges.
According to the SBA, the documents you need to open your bank account are your EIN (SSN for sole proprietorship), establishment or registration documents of your business, and any ownership agreements and business licenses you have.
11. Select and set up your accounting software
Maintaining your business finances and books is very important, especially when it comes time to file taxes. Using the right accounting software for your business will save you time and money. There are various options to consider before making a decision and they all depend on the needs of your business. Our guidance in choosing accounting software will help you decide which one is best for you.
Build your team
12. Choose your advisor and seller
At the very least, your business should have a trusted lawyer and financial experts to consult on legal and tax matters. You may also consider partnering with third-party vendors or suppliers who provide the goods and services needed to run your business. Finally, formal and informal patrons provide emotional support, guidance, and accountability.
13. If you want to hire employees
Decided to hire, make sure you understand your responsibilities as an employer from a legal and tax perspective. If you want to keep freelancers or independent contractors, keep excellent financial records and issue Form 1099-MISC at the end of the tax year. Also, it is important to understand the difference between a W2 employee and a contractor so that you do not get in trouble with the IRS for manipulating workers.
Marketing and starting your own business
14. Create a marketing strategy
Attract attention to your soon-to-be-launched business by advertising your goods and services through word of mouth, official marketing campaigns, or both. In today’s virtual-first world, building a great business website with strong SEO (search engine optimization) and developing a strong online presence through social media channels, email newsletters, blogs and more are your top priorities.
15. Start and grow your business
Your work is not over on the day it starts – you need to continue your business, assess financial conditions, and adjust your strategy. Connect with the founding community and learn from others to help you improve your vision.