8 Steps On Starting Your Small Business

You have finally decided to go on your own.  Congratulations!  Now what is your plan?   Do you have an accounting system in place?  How are you organized for tax purposes?  Do you have an updated business plan?

Here are 8 Steps on starting up your small business:

 Create a Plan and Write It Down: A plan can help you move forward, make decisions, and make your business successful. You might develop a fairly simple business plan at first as you first open your small business than elaborate as you prepare to approach bankers and investors.

Decide on a Business: When deciding on a business name research availability for that name then choose a business structure. Your small business can be a sole proprietorship, a partnership, a limited liability company (LLC) or a corporation. Depending on the complexity of your business, it may be worth investing in a consultation from an attorney or an accountant to ensure you are making the right structure choice and help to iron out all the details. This is not an area you want to get wrong.

Register your small business: This is the first step toward making it real. Get a Employer Identification Number (EIN) to identify your business. You will also need to get the proper business licenses and permits. There may be city, county, or state regulations as well.

Plan Your Finances – Starting a small business doesn’t require a lot of money, but it will involve some initial working capital to cover ongoing expenses before you are turning a profit. There are a number of ways you can fund your small business: family and friends, small business loans, angel investors and crowdfunding.

Choose Your Accounting System: One of the most important systems for a small business is an accounting system. Your accounting system is necessary in order to create and manage your budget, track your expenses and profits, conduct business with others and file your taxes. You can set up your account system yourself, or hire an accountant to take away some of the guesswork.

Set Up A Bank Account: One of the easiest ways to screw up your business accounting and tax reporting to the IRS is to commingle personal and business funds. Using a business account for all business transactions will eliminate that possibility.

Set Up Your Business Location: Whether you will have a home office, private office space or retail location, setting up a place of business is important. Make sure your business location works for the type of business you will be doing.

Promote Your Small Business: You will want to start with creating a marketing plan and explore many marketing ideas as possible so you can decide how to promote your business.

It’s a terrifying experience if you don’t have the support you need, hire an accountant to be your trusted advisor.

29 Replies to “8 Steps On Starting Your Small Business”

  1. QuickBooks is fine, but my accountant uses the Monily Accounting software. Most all the CPA’s she knows use it over Quickbooks. I have Monily here on my computer and it is easy for my accountant when I pass on a disc to her.

  2. I’m glad you talked about how one of the most important systems within a business is an accounting system. If my dad were a business owner looking to hire a business accounting service, I think he would find great value in your tips. I’ll be sure to talk to him about hiring a professional service to take care of his finances in case he is ever in need.

  3. I’m now not positive where you’re getting your information, but great topic. I needs to spend a while studying much more or working out more. Thanks for wonderful information I was looking for this information for my mission.

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  6. Thanks for mentioning that hiring an accountant can help take away the guesswork and stress of finances. My friend is working on setting up a small business, so these tips will definitely help him out. Do you have any tips for finding a great accountant or CPA firm?

  7. My sister will be starting her own business and she wants to make sure that everything will be well-organized. It was explained here that she should choose the accounting system. Moreover, it’s advisable to hire professionals for business accounting.

  8. That’s interesting that an accountant can help you decide if the business structure you’re choosing is the best choice for what you want to do. This would be smart for small business to ask since they are just starting out and need all the advice they can get. Plus this way the business could flourish quicker since the accounting can figure out finances as well.

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