The United States is potentially the best place in the world to start your own small business. The US government, unlike in many other countries, provides great support to start-ups. Many federal and local resources are open to small businesses, offering useful information, as well as educational and advisory services. Banks and other lenders are also interested in financing a new business. If you are interested in starting your own business, you have to think a lot about your idea and evaluate your capabilities. Here is a short list of actions you need to consider in order to start a small business.
Estimate your abilities
Developing your own business depends not only on money and a good idea. A business also requires commitment, good management and perseverance. You have to evaluate your personal qualities and previous experience. Are you good at planning, organizing, and networking? These are just a small part of personal qualities you need to have a successful business.
Make a business plan
While drawing up a business plan, make some calculations on paper and check whether your idea can succeed in reality. It helps you assess your opportunities. You should take factors such as sales, sources of financing, legislation, pricing, competition and management into account. If you evaluate these factors honestly, you will be able to come up with further steps needed for the implementation of your idea. You can then show your business plan to successful businessmen and get their professional opinions. In addition, your business plan provides an opportunity to establish a business partnership, get a loan, and even create an initial customer base. If you do not know how to make a business plan, attend some relevant courses at a local college, in a small business association or at a community development agency.
Create start-up capital
The most difficult thing in starting a business is finding a start-up capital – the money required to cover initial costs. Depending on the type of business, initial expenses may include insurance, advertising, rent of premises, salaries, office equipment, public relations, utilities, and other services. Your idea will never become a reality without the start-up capital. Many entrepreneurs are trying to get a loan to start their own business. However, banks and other lenders can issue a loan for commercial needs if they are sure that your business idea has the potential for success. As a rule, this requires guarantors who can repay the loan in case of the failure of your project. Another option that may work for you is raising funds from other entrepreneurs.
Think of your company name
It is impossible to give your company a name which is already registered by another company. You have to go to the state database and check if the name you want to use is already taken. The Small Business Association (www.sba.gov) can help you with this task. There are commercial structures of various legal forms. Consult a lawyer or accountant to determine which form is the best for your business.
Read also: Come up with a name for your business
Register your business
In order to launch a business, you must have a business license issued in your state. Each state has small business licensing departments where the staff will help you meet all of the necessary requirements. You can also use the online agencies’ services for the registration of a company in the United States. Online services will help you save money.
You will also need to acquire an Employer Identification Number (EIN), which can be obtained online at the Tax and Revenue Department website. Depending on the type of business you are opening, you may also need additional licenses, for example, to sell alcohol or to provide dental services.
Have you done all of the above? A further implementation of the plan will depend only on you and your partners. So, may the great adventure begin!
Read also: 8 rules for a beginner businessman
Invoicing have never been simpler! Download InvoiceMeNow app to generate and send professional invoices in seconds. Absolutely FREE: get everything you need without any charges.