Creating My Own Business

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StrategyDriven Starting Your Business Article |Creating a Business|Creating My Own BusinessStarting your own business means the beginning of an incredible journey. Creating your company can bring joy and satisfaction from many points of view. So, you saved some money, gathered motivation, and you’re ready to take the first steps in creating your own business. Good financial and legal decisions are essential. However, passion and determination are the most important things in the long run. It would be best to realize that you’ll face many problems and hiccups along the way. That’s why the strength of character is fundamental in pushing through issues and adapting along the way. The world of business is a dynamic arena in which only the fittest survive.

The following piece will provide you with a basic planning framework to start your firm from scratch:

Research the market and examine your competition

First of all, you’ll have to understand your target market. Ask yourself a couple of questions:

  • Who are my clients? What’s their age, gender, social status, etc.?
  • Who’s my competition? What’s their business plan, and what can I learn from them?

Understanding the market is necessary if you want to get straight into business once you open. Consider the level of demand for your product/service. Also, gauge the market size, the location in which you operate, pricing ranges, and other economic indicators such as population income and employment rate. In other words, market research means analyzing the conditions in which you’ll work. It’s a way of observing and adapting to fit the needs of the market.

Create a business plan

The business plan helps you understand your business’s structure, operation, and future needs. This document will also help persuade collaborators and investors into working with you. There are a few free templates and guides available online. Don’t worry if you don’t know how to start. Download the sample that represents your company type the most and start filling it up.

There are two main styles: traditional or lean start-up. The traditional style is more extensive and detailed. On the other hand, the second kind allows a brief summarizing of the vital points.

Invest capital in your company

The next move is to calculate how much money your business needs to take off. This way, you can figure out how much capital you need to raise through personal funds, investments, or bank loans.

Self-funding is everybody’s dream. Unfortunately, that’s not possible in most cases. So, you’ll need to think about a few options:

  • Crowdfunding is an excellent outside-the-box choice that can work wonders for certain types of businesses.
  • Small business loans through banks are classic ways of starting and are safe.
  • Other programs to consider are Small Business Investment (SBA) loans through Lender Match.

Decide on your business location

Location, location, location. The area in which you operate establishes the tax range, zoning laws, and business regulations. You’ll have to analyze various states, cities, and even neighborhoods. When calculating start-up expenses, make sure to:

  • Include area-specific expenses such as minimum wage, property value, rental value, insurance rate, utilities, and government licenses/fees.
  • Include zoning laws regarding buying, renting, building, and operating out of a physical building.
  • Include local and governmental incentives such as tax cuts, utility cost reductions, urban redevelopment motivations, and technological support.

Choose your firm’s legal structure

Your business’s legal format determines day-to-day activity, license requirements, tax ranges, and personal liability. Selecting the proper structure means efficiency, legal protections, and benefits.

First, you’ll have to review, compare, and understand the main business structures:

  • Sole proprietor;
  • Partnership;
  • Limited liability company (LLC);
  • Corporation;
  • Cooperative.

Next, you must decide if you’re going to combine various structures for tax benefits. Although somewhat uncommon, combining different legal designs can yield tremendous advantages but are generally harder to set up.

Select your brand name

Choosing your company’s name seems the easiest point of the list, but that’s not entirely true. You must decide on a captivating title that echoes your brand spirit. Also, you’ll have to make sure the name isn’t already registered.
Once you’ve done your research, it’s time to register your brand name under:

  • State-level entity names, which offer protection within state borders.
  • Federal-level trademarks, which offer protection within national borders.
  • Doing Business As (DBA); it’s not always required, but some legal structures need it to open a bank account.
  • Website domain name.

Register your company

Once you’ve decided on the business name, it’s time to register it legally. Registration is especially required if you’re conducting business without using your legal name. In this case, you’ll need to register federally and even locally.
Suppose your company plans to conduct business in more than one state. In that case, you’ll need a foreign qualification from the Certificate of Authority.

Obtain federal and state tax ID

Alias Employer Identification Number (EIN), the tax ID works as a private social security number. It allows businesses to pay taxes, pay employees, file tax returns, etc. Once you’ve set up your tax ID, don’t forget to update it in case of changes in names, addresses, ownership, management, or tax status. This IRS digital assistance tool will help you apply for an EIN.

Get your license and permit

To grow your business into a success story, you need to stay legally compliant. Obtaining all the licenses and permits is an obligatory step to remain legally protected and do business. They vary by industry and are slightly different from state to state.

Generally, the more “dangerous” a business is, the more permits it needs to function. For instance, a firearms shop will encounter more scrutiny than a TV company. Likewise, fisheries or agricultural firms need more permits compared to a clothing shop.

Open your business bank account

A company bank account is almost mandatory for most sectors. A checking account helps handle transactions, taxes, and much more. Additionally, it’s a protection method against fraud or other malicious activities. Having a bank account means transparency, professionalism, and purchasing power.

Opening a bank account is pretty easy with the right paperwork. Just make sure you compare different institutions to get maximum benefits for you and your business.

Conclusion

Creating your own business is the ultimate capitalistic dream. Building a company means hard work and personal sacrifices, but the potential rewards are well worth it. Let’s recap the main points of starting a firm:

  1. Market and competition researching;
  2. Creating a business plan;
  3. Gathering and investing money;
  4. Picking a location;
  5. Choosing the legal structure;
  6. Naming your brand;
  7. Registering the company;
  8. Obtaining federal/state tax ID;
  9. Getting licenses and permits;
  10. Opening a bank account.

About the Author

StrategyDriven Expert Contributor | Tiffany HarperTiffany Harper is an experienced corporate sector writer, who sometimes helps as an expert to ninjaessay. She specializes in entrepreneurial development and start-up strategies. If you need essay help or business advice, don’t hesitate to contact her. When Tiffany is not working she is writing her book about self-growth and self-motivation.

Tips to Avoid Startup Failure

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The unfortunate truth is that most startups fail within a year of existing. Of course, if you’re about to start a new business, you’ll want to do everything you can to avoid that fate. But if you rush in without considering what might go wrong and how your business might fail, you’ll be vulnerable to that very same fate.

We’re going to talk today about some of the things you’ll need to do in order to reduce your risk of failing in the first few months or the first year of your business’s existence. Each of these ideas will put your new business in a much better position, so read on to find out more.

Address a Need That Exists in the Market

First of all, you need to make sure that your business is addressing a need that genuinely exists in the marketing. If you’re trying to plug a gap in the market that doesn’t really exist, that’s not going to go too well for you. The most common reason why startups fail is because there’s not enough demand out there for what it is they’re trying to offer. So do your research and make sure you’re providing something you think people will really want.

Ensure Financial Stability

Financial instability and running out of funds is another one of the most common reasons why startups fail. You obviously don’t want that to happen to yours, so make sure that your finances are all properly planned out and you have a clear plan for how you’re going to fund all of the plans. That might mean having to look for external investors who can back your idea in order to push it forward. Don’t rule out that possibility.

Understand How You’re Going to Compete

Most startups are outcompeted when they’re starting out, and that’s understandable. Most startups find themselves up against more established and better funded rivals who simply know how to complete better than they do. That’s why you need to have a plan in place for how you’re going to compete with your rivals in the market and ensure you don’t get left in their dust. Put a strategy in place and stick to it over the long-term.

Learn What Makes a Good Startup

It’s in your best interests to really understand what it takes to succeed as a startup. Do your research and talk to the owners of other startup companies about their experiences and what they learned in their early years. By taking the time to understand the attributes of the best and most successful startups, you’ll be able to put yourself in a much stronger position moving forwards, and that’s the way you want it to be.

Build a Good Team of Ambitious People

Having a good team of people in place is something that’s really important. Building a team matters and if you don’t have the best possible people with an ambitious approach to doing business on your side, you’ll struggle to get off the ground. The team needs to be compact and well-balanced. Hiring too many people can be just as damaging as hiring the wrong people from a financial point of view, so try to keep that in mind.

Ensure Leadership is Strong

The way in which your new business is led will make a big difference. Early on, you’re going to experience a lot of problems and challenges along the way and the way in which the leadership of the business handles and overcomes those challenges will have a big impact on how successful it’s likely to be over the long-term. The company’s leadership needs to be clear and it needs to have vision if it’s going to steer the business ably.

Get Feedback From Customers

Your first few customers are, of course, very important to your startup. You’ll also want to make sure that you’re getting as much feedback as possible from those customers. They can tell you where you’re going right and where you’re going wrong. As a new business, you’re not going to satisfy customers 100% of the time, so it pays off to understand where and how they’d like you to improve.

There’s no shortage of ways in which you can help your new business find lasting success. But first of all, get through the awkward startup phase and create the foundations you can later build upon. You’ll be able to protect your startup and avoid early failure if you make the most of what we’ve discussed here.

The Types of Business Model You Might Want to Consider for Your First Company

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StrategyDriven Starting Your Business Article |Business Model|The Types of Business Model You Might Want to Consider for Your First CompanyThere are many decisions that need to be made when you’re looking to go into business for the first time. If you want to find lasting success, it’s important to get the fundamental decisions right. Among these is the question of what kind of business are you actually going to operate in terms of its business structure and its function and purpose within your chosen industry. We’re going to explore some of the options today, so read on to find out more.

Manufacturer

First of all, you might want to consider operating as a manufacturer within a particular niche. The manufacturing of supplies, products, parts and plenty of other things is always important and always will be. Manufacturers are relied upon by lots of different businesses operating within many fields and sectors. The startup costs can be high, but the profit margins can be strong too with the right setup and approach.

Distributor

Logistics and distribution has long played a vital role in the functioning of modern economies, and that’s truer now than ever before. Getting products and supplies to where they need to be in a timely manner is important, and any holdups in distribution can have knock-on effects for all kinds of other businesses too. That’s not something anyone wants to be dealing with, and it’s why reliable distributors matter.

A Franchise

If you’re looking to start a business that’s going to be less challenging to startup and that comes with a ready made idea, it makes sense to consider a franchise model. You can start a tax preparation business, a fast food chain and pretty much anything in between with the use of a franchise model. It definitely takes some of the hard work out of getting your very first business off the ground.

Retailer

Selling directly to the public is one common way to form the premise of your business. Retail companies can also focus on B2B sales within a particular business niche however, so that’s something that you might want to explore too. Succeeding with a retail business means having good sales people and offering strong customer service, as well as an ability to deal with all kinds of problems as they arise.

Ecommerce

If you want to get into sales but you want your new business to be online-based, it makes sense to consider the ever-expanding option of ecommerce. Of course, as we’re all buying online more than ever today, ecommerce is bigger than it ever has been, and there are certainly opportunities out there for you to take advantage of if you want to. It’s definitely a business model worth exploring if you want to keep startup costs low.

Each of the options we’ve discussed here is worth exploring because each business model we’ve mentioned is important and matters in its own right; there’s no doubting that. But what’s right for you will depend on where your skills lie and what you want your business to be, so give this some thought.

Top Tips For Starting A Courier Business

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StrategyDriven Starting Your Business Article |Courier Business|Top Tips For Starting A Courier BusinessThere is a lot of business available for couriers, especially at the moment, when demand for online delivery is even higher. Despite this demand, a lot of people are unsure about whether or not they ought to venture into setting up a courier company or business. Whether you are new to the delivery industry or have been working for another courier company are have the experience to consider starting up a company of your own, follow some of these tips to help you make those all-important first steps to get started on your new business and your courier delivery service.

Make A Business Plan

Like any new business, you need to make a clear business plan before you start doing anything else. Your business plan should include your expenses, competitive pricing, and profit margins. You must have a clear vision of how you will be able to make money and what kind of courier work you intend to take on. Establish where you will get new business from and think carefully about how you will retain clients. You can use delivery quote comparison sites to secure some new business, especially when you are starting out and still have a limited marketing budget. The clients you find through services like that could become your regulars and loyal customers if you can provide a good level of customer service.

Get Your Vehicle

You need to decide if you will buy or lease your delivery vehicles. You will need a practical vehicle that is safe, reliable and has a good fuel economy. If you decide to buy a vehicle, make sure you get it checked out by a competent mechanic (click here for a truck inspection service) before you part with your cash. Make sure you include the depreciation in the value of your vehicle in your business plan too.

Organize Office Space

If you set up an office in your home, contact your local zoning office to make sure that you are legally able to run a business from your home, according to local laws. If you decide to rent office space instead, consider location and cost, and add these into your business plan.

Purchase Materials And Equipment For Your Courier Business

The materials and equipment that you will likely need for your courier business might include things like cell phones, two-way radios if you’re hiring one or more employees, office supplies like envelopes, pens, pencils, and notebooks, a GPS unit, and computer software to help you to track pick-ups, deliveries, invoicing, and bookkeeping. You might also want to purchases gas cards for your employees and ledgers and to track the usage of gas and how many miles have been driven every day.

Start Marketing

Get your marketing underway. Start by contacting some local businesses to market your courier services. Lawyers, banks, corporate offices, notaries, hospitals, medical offices, and individuals in your local community may have all need of a good courier. Have a brochure made that will highlight the information about your offerings, such as the services that you offer, your operating hours, your delivery options, and your contact information. You can advertise your courier services in online and print business directories. Go to local trade shows and conferences for small businesses to network with potential clients. Set up a simple website that includes your contact details too, and use delivery comparison websites to help you to generate your first leads until you can secure some regular clients.

Start Hiring

Hire one or more employees if you think you want to be the one who manages the offices and not be the one out making pick-ups and deliveries. Make sure that before you hire anyone you carry out a thorough background check and credit check before you hire them to work for your company. All your employees must have clean driving records, and reliable transportation if you want them to use their own vehicles to make deliveries. If you want to make the deliveries yourself, you will need to hire someone that you will manage the office. Make sure you have the correct qualifications before taking them on to do this.

Delivery Options

Decide early on whether you will offer different options for delivery, such as one-hour delivery or an overnight service. You will also need to decide the type and size of materials delivered, whether you will be offering more specialist delivery services such as confidential material or oversize items.

Develop A Pricing Structure

For example, decide whether you will charge less for letter delivery than you would for a heavier parcel. If you are going to offer same-day or one-hour delivery, think about the time and effort it will take for you to provide these services.

Estimate Your Ongoing Costs

When you decide on the pricing for your services, you need to remember to take into account all your expenses and make sure that these are covered and you will still turn a profit by knowing your ongoing costs so you can set your prices and rates accordingly. Take into account the cost of petrol or diesel, and vehicle maintenance when you set up your price structure. Cash flow can be a problem for any new business so you should make an estimate of what you will earn in your first year as part of your business plan and work out how many jobs you will need to take on in order to cover your costs and make a profit.

Check Your Insurance

An accident or other unexpected problem can cause some serious problems for a new business. Make sure that you have insurance that is suitable for a courier company. Make sure you insure the contents of your office as well as your vehicles and your employees.

When you set up a delivery or courier business, you need to work out revenue streams and expenses as well as thinking about how you can win business. These tips should help you to get on your way.

Practical Tips for Starting a Small Business

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StrategyDriven Starting Your Business Article |Starting a small business|Practical Tips for Starting a Small BusinessStarting a small business can be exciting, but it’s also a process that comes with many considerations and potential challenges waiting to be turned into opportunities. If you’re considering launching your own business or are already in the middle of that process, you’re not alone. The United States is experiencing a boom in entrepreneurship, likely related to many companies being forced to lay off workers during the pandemic and many people suddenly having time to pursue their personal projects.

Yet, many small businesses don’t survive for very long. Following are some critical tips for successfully starting your own business.

  • Conducting adequate research before opening. This is a bit of a given, and something that we feel confident any budding entrepreneur would already have done. However, it is still vital. By ensuring that you have researched any topics that might relate to your company, you can be as prepared as possible for any obstacles you might encounter. For example, if you plan to employ foreign workers, a law podcast by Farmer Law PC. may prove helpful.
  • Setting a realistic timeframe. While you may want to get your new business venture off the ground as soon as possible, setting a realistic time frame will help you ensure no corners are cut or important considerations overlooked. Making a note of your initial timeframe also helps to keep you and anyone else involved in the process on track. Build in time for navigating processes that are complex or with which you’re unfamiliar, so you don’t find yourself behind on your timeline when you hit these challenges.
  • Monitoring and comparing your business against competitors. What makes your business different and more likely stand out to consumers? A market analysis should be a key component of your start-up process. However, you mustn’t compare yourself too much. As human beings, it can be easy to fall into the pattern of endless comparison, which can leave us feeling deflated or overwhelmed. A more productive approach is to conduct an initial market analysis, then put your head down and get to work starting your small business and setting it up for success.
  • Earn While You Build: It can be tempting to quit your day job to chase the dream that you have in your mind. While it can seem appealing to do this, it is vital that you attain your existing job, while building up your small business on the side. This enables you to establish a customer base, and to iron out any issues that you come across before relying on your small business as your sole source of income.
  • Stepping Out Your Comfort Zone: To be successful, you must take reasonable risks. Successful entrepreneurs and businesses did not reach the pinnacle of their success by sitting back and remaining silent. Pushing yourself to be outgoing and to engage with your broader network can open doors and opportunities for you, which would have otherwise remained closed.