If you are thinking about starting a business or you are a new business startup, here are the steps to starting your business.

Step 1.

Write a business plan.  The business plan is important for you to fully understand what it will take to succeed.  Before you get a loan or cash out your retirement, write a business plan.   The plan will force you to think about all aspects of your business, including marketing, product demand, management, operations, key people, product/service description, pricing, financial projections, start-up costs, etc.   The business plan will help you determine the amount of money you will need to finance your business.  It is the road map for your success.

Step 2.

Find a Location.  This is important because it becomes part of your business plan.  Do you plan to lease a space or will you work out of your house?  Some experts say that location is everything.  You may have heard:  There are 3 key things to a successful business — “location, location, location.”  A restaurant needs to be located in a place where there is visible traffic.  If you don’t require high traffic, then location is not critical.  Regardless where you locate your business, you must decide early on what will be you location expense.

Step 3.

Start up Budget.  How much money will you need to start your business? It is important that you develop a start up budget, a projection and a cash flow statement.   To determine how much money you need to start, you need to first know your “start up costs,” and how much money you will need for your business until you break even.  In other words, “how much money will you need to have in the beginning before you start making enough money to pay your monthly operational expenses?  

Step 4.

Identify your Team.   Who is going to help you achieve your dream?   To make your business succeed, it is important that you identify all the people necessary to make the business work.  Think about your operation.  What key people will you need for your business?  This includes people for your operation, people for expert advice?  Think about production, sales, accounting, etc.

Step 5.

Determine the legal structure for your business.   Every business has a legal structure.  Many businesses begin as a sole proprietorship.  This is the simplest form of business for one owner.  But it has both advantages and disadvantages.  Depending on the nature of your business, you may consider forming a corporation or a limited liability company.  See the section in this website on Legal Structure.

Step 6.

Licenses and permits.  Research whether you need a Business license or permit.  Depending on the nature of your business you may need a license or specific permit to conduct business.  For example, restaurants, beauty salons, construction companies all require specific permits.  Some professions also require licenses, such as doctors, nurses, accountants, etc.  If you intend to sell goods, you will likely need a Sales Tax permit from the state of Texas.

Step 7.

Start Up Money. Start up money is important.  You will need to establish a relationship with a lender.  Before you begin, prepare a projection of your expenses and income that you anticipate over the period of one year.  Determine were you will obtain start up money – savings, loans, investors etc…

Step 8.

Establish an Accounting system.  Before you open your doors it is important that you set up an accounting system.  This includes software, computer and the system to ensure you are tracking income and expenses.   Businesses that fail often fail because they don’t set up an accounting system.

Step 9.

Other Legal Aspects.   There are many legal aspects to business operations.   Some businesses require relationships with venders, independent contractors, employees, suppliers and/or customers.  Think about the agreements that you should put in writing.  You may also need an agreement between owners.   You may also need a trademark or some intellectual property agreement.

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At Business Start Ups, LLC, we can help you with the process of starting your new business.  We can help with setting up your accounting system, website design or incorporation .

Business Start Ups, LLC.| 915.592.6500