Business ownership is a dream shared by many. Going from the dream of entrepreneurship to reality and grand opening requires hard work, dedication, knowledge and passion. Running a business requires all of the above, as well as patience and stamina. The process of starting and operating a business is methodical; Skipping steps or middle direction can lead to problems. A wise business owner knows his business inside and out and will know when it is wise to take corrective action and when it is time to take the next step.
How to start a small business or business
1. Choose a business that you are passionate about.
The launch process will be much smoother if you enjoy what you are doing. Determine if you want to start a business from scratch, buy an existing business, or buy a franchise. Starting from scratch is the most laborious route, but buying an existing business can mean buying a headache from a previous owner. Buying a franchise provides a successful business model, but you lose a lot of freedom to adopt your own personal touches.
2. Write a business plan.
Some would argue that a business plan is not necessary to start a business. Although you don’t need a plan to start a business, the absence of one is similar to navigating the world without a map. Think of the business plan as the map of the business. The plan keeps the business on task during the startup process and during operation. A business plan is also a requirement for any business seeking external financing from a bank or investors.
3. Select a business structure.
Each business is required to declare itself as a sole proprietor, partnership, limited liability company, or corporation. Determining which structure is best for you will depend on how much tax and asset protection you need, whether you will be running the business alone or with one or more partners, and how much flexibility you want.
4. Acquire all required licenses and permits.
Requirements vary by state, so check with your Secretary of State’s office and your local county clerk’s office for the list of required documents.
How to keep a business in operation
1. Establish an accounting system or hire an accountant.
Knowing how your business is doing financially is important for planning and survival. Using an accounting software package will make it easier to track business transactions, if you decide to do the accounting yourself. If you choose to hire an accountant, please provide the information so that you can start managing the account as soon as possible.
2. Advertise your business.
No one will buy your products or services if they don’t know you exist. Create a website and advertise in different media, such as newspapers and radio. Ask customers for references. Connect with other business owners to help with recognition and get referrals for new businesses.
3. Insurance and insurance for the business.
Some states require a business to have insurance. Others, like Texas, do not require it but recommend it as a business practice. Liability insurance protects the company in the event of litigation. Consider life and disability insurance, health insurance, and renters insurance, if you are renting an office or store.