10 Steps to Start Your Business

It is easy to romanticize the idea of becoming an entrepreneur, and in doing so, you may be quick to skip steps without factoring in what it truly takes to create a solid foundation for your business.  This opens the door for serious mistakes because as the saying goes, “You don’t know what you don’t know.”  I can honestly say that I have been that entrepreneur.  I was in love with the idea of starting business, but as an amateur, I had no idea what I was doing like many other individuals out there.  It was as if I was stumbling in the dark with no real guidance because I failed to understand the real significance of following the right steps.

Why Is It Crucial? 

Following the correct steps to establish a business is crucial for 3 main reasons:

• Legal protection.  Too often, entrepreneurs skip crucial steps which can cost them dearly later on.  The world of business is filled with liabilities, and all it takes is one mishap to place assets in jeopardy. 

• Taxes and Finances.  Many do not consider that with a business financial planning and tax preparation are a must.  Not factoring in finances and taxes could even potentially create problems with crucial reports (ex: determining your true profit and loss) and could even create problems with the IRS.

• Ownership and Management.  Following the proper steps allows entrepreneurs to plan, understand, and execute how their business entity will run.  This brings solid organization to the business.

Where Can Information Be Found?

The U.S. Small Business Administration (SBA) is a valuable resource that was established in 1953 to help small business owners.  This federal agency serves as a learning platform that offers business guides, programs, funding, contracting, assistance, and much more.

What Are The Steps?

The SBA website outlines the following 10 steps as a blueprint for successfully starting a business. By going to their website, you can read a detailed overview of each step listed below:

1. Conduct market research

2. Write your business plan

3. Fund your business

4. Pick your business location

5. Choose a business structure

6. Choose your business name

7. Register your business

8. Get federal and state tax IDs

9. Apply for licenses and permits

10. Open a business bank account

Seeing all of those steps listed by the SBA can be intimidating (especially if you are new to entrepreneurship), but getting through them is rewarding. When establishing a business and working through the list of steps gets tough, remember why you started in the first place. Feel free to go back to our blog article "20 Questions to Consider If You're Serious About Starting a Business" if you need to remember your list of reasons why started in the first place.

Remember, in matters of business have faith and patience.