Follow These Top 10 Steps To Starting A Business And Business Development
The current economy has many people thinking about starting their own business. There are also current business owners who are looking at ways to improve their business by the use of business development. While this article is written for the new business owner, the current business owner could benefit from going through this process.
Here are the Top 10 Steps To Starting A Business And Business Development:
Top 10 Steps To Starting A Business And Business Development Step #1: Start with a business plan and put it in writing – For many people they just ended up in business. While this can work for awhile it is not a likely long term solution to business development. There are certain key components to a successful business development plan. The business or business development plan should include an executive summary, a brief yet detailed description of the actual business, a written plan for the marketing of the business, discussion of how and who will manage the business and financial projections along with supporting documentation. Use the following outline:
Business or Business Development Cover sheet
The Executive summary which will be the statement of the business purpose or the purpose for business development
The table of contents to allow those looking to easily locate information
The business itself
The description of your business who what and where
Your marketing plan
Know and describe your competition
What are or will be your operating procedures
A list of personnel titles and names of current people in those roles if the exist
Your business insurance coverages
Business and personal financial data
Any loan applications
Current or proposed capital equipment and supply list
A current personal and business balance sheet
The business breakeven analysis
Current or proposed profit and loss statements
A business three-year summary future and past if available
Business detail by month, first year
Business detail breakdown by quarters, second and third year
Details for the assumptions that were used for the projections
Pro-forma cash flow
Business Supporting documents
The tax returns for the principals (any partners that will be involved in the business) for last three years, personal financial statements (any bank have these forms)
Copy of franchise contract if any and all supporting documents provided by the franchisor (for franchise businesses)
Copy of any proposed lease and / or purchase agreement for building space
Copy of necessary licenses and other legal documents
Copy of resumes of all active principals are the most important but others will be helpful
Copies of letters of intent from suppliers, etc.
Top 10 Steps To Starting A Business And Business Development Step #2: Take advantage of training and or assistance for business start-ups and owners – There are resources for you to use to either help your business grow or to get your business started. Here is a list of places to go for assistance and training:
Local SBA Office
Small Business Development Centers
Women’s Business Centers
Veterans Business Outreach Centers
U.S. Export Assistance Centers
Procurement & Technical Assistance Centers
Top 10 Steps To Starting A Business And Business Development Step #3: Take the time to make the right business location decision – You should see advice when you start looking for a location for your business. This is a very important decision for both a business start-up and business development. Here are some tips for making the best business location decision.
Think about the activity of your business
Will your customers have to come to you?
If you have to go to your customers what type of access is needed?
Will you have employees?
Are you going to manufacture any products that you will distribute?
Will you be dependent on pedestrian or drive thru traffic?
Is retail type access necessary?
How important is visible signage?
What are your local and state laws for signs, billboards and advertising?
Will it be important of your customers or clients to have quick access to you?
How much parking is necessary?
Is access to public transportation important?
How close are you to competitors?
What type of location do your competitors have?
Will it be beneficial to locate to competitors to gain overflow business?
Could your business be run from home?
What would be your clients perception if you had a home based office?
Are there any zoning laws that would prevent you from working from home?
The 3 most important things for most businesses are location, location, and location. Take the time necessary to make a good location decision.
Top 10 Steps To Starting A Business And Business Development Step #4: How will you finance your business?
There are different ways to finance a business start-up or business development. Some examples are
Government backed bank loans
SBA Loan Programs – 7(a) Loan Program, Microloan Program, CDC/504 Loan Program
Other Financial Assistance – private investor, independent venture capital, or angel investor
Having a relationship with a quality banker can invaluable. Contact your personal bank to get started.
Top 10 Steps To Starting A Business And Business Development Step #5: What will be the legal structure of your new or ongoing business? – Will you operate as a sole proprietorship, partnership, Limited Liability Company (LLC), corporation, S corporation, nonprofit or cooperative. Contact a legal professional to determine what is correct for you.
Top 10 Steps To Starting A Business And Business Development Step #6: Complete the process to register your Business Name (“Doing Business As”)
Not all states or localities require you to register a DBA, Doing Business As or a fictitious name that will be used for business purposes. If it is a requirement, you will have to check with your local county or parish clerk’s office or state government.
Top 10 Steps To Starting A Business And Business Development Step #7: Obtain your state and federal tax id or EIN (Employer Identification Number)
Make sure and follow the guidelines for your federal and state EIN. You can go siteto the irs.gov website and then your state revenue agency site.
Top 10 Steps To Starting A Business And Business Development Step #8: Register for State and Local Taxes
Register with your state to obtain a tax identification number, workers’ compensation, unemployment and disability insurance.
Top 10 Steps To Starting A Business And Business Development Step #9: Obtain The Proper Business Licenses and Permits
Get a list of federal, state and local licenses and permits required for your business.
Top 10 Steps To Starting A Business And Business Development Step #10: Understand Employer Responsibilities
Learn the legal steps you need to take to hire employees.
10 Steps to Hiring Your First Employee
1. As mentioned in Step #7 above you should obtain an Employer Identification Number (EIN)
2. Follow the guidelines to set up records for withholding taxes
3. Complete the employee eligibility verification (Form I-9)
4. Take the time to register with your home state’s new hire reporting program
5. Work with your insurance carrier to obtain Workers’ Compensation Insurance
6. Unemployment Insurance Tax Registration
7. Obtain Disability Insurance (If Required)
8. Post Required Notices
9. File Your Taxes
10. Get Organized and Keep Yourself Informed
The Top 10 Steps To Starting A Business And Business Development article listed above contains guidelines to start a new business and some things to think about if you are looking to improve your business development. You should see that advice and help of several professionals whether you are starting a new business or looking to improve the business development of your current business.
Mark Talbot Writer For Business Development Marketing
Originally posted 2015-04-01 16:16:48.