Best Steps to Take Before Starting Your Own Business

Small BusinessBeing your own boss is the American dream—but before you throw your hat into the ring, you need to set some time aside for planning. Starting your own business isn’t just a question of how to do it. You also need to determine whether you should. Here are some business startup tips that will make the process simpler:

  • Do your research: The very first thing you need to do is research your idea, product or service. Whether you have an original idea or a way to improve on an existing one, it’s important you figure out whether your business is unique enough to succeed. You should also research what it takes to be successful in your field. For example, starting your own law firm requires a certain degree of experience and management skills.
  • Find mentors and advisors: If you can avoid making big mistakes, so much the better. The best way to circumvent easily-avoided errors is to find mentors and advisors in your field. Lawyers, accountants and mentors in your field can walk you through how to start your own business and find success in doing so.
  • Find your market: Next, figure out who your target market is. This will help you decide how you’ll pitch and market your business. Maybe you want to sell jewelry on Etsy. Who does your product appeal to? How can you convince them that your shop is uniquely suited to their tastes and buying habits?
  • Make a financial plan: How do you plan to fund your business? How much money do you expect to pull in during the first, month, quarter or year? How will you price your goods and services? Will you have employees? How (and how much) will you pay them?
  • Create a business plan: You’ll need to create a business plan before you can secure capital. You’ll need a description, mission statement, list of products and services, market analysis, financial plan and a list of decision-makers in the company. Some business plans may include other features, depending on your industry.
  • Choose a structure: Next, choose a business structure. Will your business be a sole proprietorship, LLC, corporation or partnership? The structure you choose will affect your tax liability, as well as who’s at risk if the business gets sued.
  • Learn about your tax liability: When you’re choosing a structure, it’s worth talking about tax liability with an accountant. They can help you strategize so you save more on taxes during this startup period, as well as into the future.
  • Secure investors: Next, it’s time to find investors. This might be as simple as obtaining a small business loan from the bank, or as complex as finding the right venture capitalists. Your business and financial plan are key to this process.

Starting your own business is time-consuming, but can be quite rewarding in the end. When you need tax and business startup advice from seasoned tax pros, call Lion Rex ATA Inc. today. We’re happy to help start you down the road to success.

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