It’s a complex process to start a new business. There are so many things competing for your attention that you can end up overlooking critical steps. That blunder can cost you a lot in terms of money, time, and effort.
What’s the solution?
Diligently follow a business startup checklist—the kind that’s included in this post. Let’s take a look at it.
Step 1: Validate Your Business Idea
Before you start your business, you need to validate your big business idea. Does it have sufficient market demand? What level of competition exists in your chosen niche? Does your product/service solve your target audience’s problems or fulfils their needs?
These insights can be gathered by rigorous market research. Don’t hesitate to go back to the start if there is insufficient demand or stiff competition for your offerings.
Step 2: Create a Business Success Roadmap
Now, it’s time to outline your business plan in concrete terms by creating a business plan. It should cover things like your organizational structure, product catalog, financial projections, and marketing/sales strategy.
Many of these aspects will be dictated by the business structure that you decide for your business. You can choose to set up the business as a Corporation, Partnership, Limited Liability Company, or Sole Proprietorship. Regardless of the structure, every business should be registered in the state of operation.
Step 3: Give Your Business a Legal Identity
To do monetary transactions on behalf of the business, you need to have a business bank account. Before that, you need to apply for a unique tax ID. For the application process, you will need to furnish documents like the ownership agreement and Articles of Organization.
Once your business bank account is set up, you can start receiving and sending payments from clients, investors, and other stakeholders.
Step 4: Get Essential State Permits
In order to risk-proof your new business, you need to have permits that are applicable to your business and industry. For example, a pharmacy needs to secure a health permit, and a home improvement firm should have a construction permit. Depending on the nature of your business, research about the kind of permits you need and apply for them.
We have tried to break down the business startup process in four critical steps. However, there are a number of sub-steps in each of these four steps. To gather information about those, checl out this infographic by GovDocFiling.
Brett Shapiro is a co-owner of GovDocFiling. He had an entrepreneurial spirit since he was young. He started GovDocFiling, a simple resource center that takes care of the mundane, yet critical, formation documentation for any new business entity.