The first step in starting your own small business is to have an idea. All great businesses start with a simple idea. With the idea in your mind it is time to start fleshing out a business plan.
When writing your business plan it is important to be as detailed as possible. If your business will require funding or loans, a properly written business plan is a must. This plan should include a detailed description of the business, how it will operate, who will run it and what the business will do to create an income. A financial breakdown is also needed, including how much capital is available for starting and operating costs, as well as your tax return information for the previous three years.
Once the business plan has been created it’s time to choose a location and obtain a small business loan from a local bank. Often your bank will offer a small business loan. Loans can also be obtained from the United States government. After your financing, if needed, has been approved the next step is to apply for a DBA, or “Doing Business As”. This document is your legal license to do business under a fictitious name.
One of the most important aspects of starting your own business is obtaining a Tax ID number from the U.S. Internal Revenue Service and registering for state and local taxes. In order to sell products and services you will need to collect sales tax and submit them to the proper agencies.
The final step is obtaining business licenses and permits. Depending on the location of the business a permit may be required from both the local and state levels, as well as from county authorities in some jurisdictions. Once you have all these things in place you are ready to open the doors and begin doing business.
Congratulations. You are now a small business owner.
One of the most important things to keep in mind when you first start your own small business is that a new business will often not be profitable for the first year. This is because it not only takes time to build a clientele, but there is often also a large start up cost involved, which takes time to recover. Giving your business plenty of time to turn a profit is important. Before you know it your business should be off the ground and running smoothly.