March 31st, 2022 | Updated on August 24th, 2022
Creating your own business can transform the life of yourself and your loved ones for the better, or it can drive you completely mad if you go about, it without a plan. After you have settled in on your idea, you need to run it through the wringer of practicality by building a business plan for it.
To show that you have a firm grasp on what your business consists of and will need to operate, at the minimum, your business plan should contain the company name and description, customer segmentation, a financial strategy, logistics, the management and organization, market analysis, a marketing plan, the operation plan, and the products and services that will be available for sale.
Aside from securing financing from personal savings, fundraisers, grants, business loans, crowdfunding, and personal investors; you need a brand logo and brand colors to build a personality for your company, and you need to establish your brand position to clarify who your ideal customer is that you are serving, here are important business considerations to make from those that have done this before you.
Business Structure And Tax IDs
Picking the proper business structure to operate your company in is all about the financial and legal protection you need based on your country and area.
Common business structures in the United States consist of:
Corporations
C corporations are businesses structured to where owners are taxed separately from the business entity, which is owned by shareholders that each has a fractional portion of the company.
Sole Proprietorship
Sole proprietorships are ideal business structures for use when there is only one person involved. Employees can be hired by a sole proprietor as long as there is an identification number associated with the company.
Limited Liability Corporation (LLC)
A limited liability corporation (LLC) is a type of business entity for small businesses in the United States that protects the owners from being financially responsible if legal claims are brought against the owners.
You’ll need an Employer Identification Number (EIN) assigned by the federal IRS if:
Your business has employees and/or partners other than yourself, is incorporated, the company has been purchased and taken over, there is a retirement plan for self-employed individuals, you want to open a business bank account or file for bankruptcy.
State Tax ID
A state tax ID is different from your EIN because the EIN is assigned federally, and a state tax ID is assigned by your state. The state tax ID helps your business comply with state business laws.
Gather Your Team
Once your company has been properly established, financially funded, and has its legal ducks in a row, so to speak, it is time to put your all-star team together so that you all can get to work.
Who you need to hire and how many employees you will have to have in total depends on the tasks that will need to be completed on a regular basis and who is qualified to execute these endeavors to keep the business afloat?
If you happen to be in a position where you will be starting out as a one-man or one-woman show, keep in mind that you only have one body and one set of 24-hours-a-day to work with (and some of those hours will be used for sleeping).
If hired help is on the way, then you will have to keep track of those expenses along with the time needed to find, train, and onboard these freelancers or employees.
As a word of advice pertaining to getting the right people in the needed positions for your business, Kevin Miller, the Co-Founder, and CEO of GR0 and The Word Counter, shared a gem of knowledge with BillonSuccess.com that has helped him shine in his extensive career:
“I would suggest analyzing the aspects of the business you do not have expertise in, then figure out a way to outsource for help. Outsourcing earlier can save you from wasting time, energy, and resources.”
Get Your Business Insured
You should also make sure that your business has the proper insurance in order to protect your assets.
Here is a list of the most common types of insurance that your business may need to stay protected:
- Business Interruption Insurance: covers the operating costs of your business if it has to relocate or completely shut down.
- Commercial Auto Insurance: covers damage caused to or by any vehicles you use for your business.
- Commercial Property Insurance: this will help your business if any property is damaged or destroyed due to fire, storm, or theft.
- Cyber Liability Insurance: gives liability coverage to businesses that have experienced a data breach.
- Product Liability Insurance: protects distributors, manufacturers, retailers, and wholesalers.
- Professional Liability Insurance: protects service-related workers from liability for negligence or malpractice.
- Umbrella Insurance: offers you extra coverage to help pay for anything that may have gone above your policy limits on other forms of insurance. Protect your small business with Farmer Brown small business insurance online quotes. Contact us today to find out the cost of your small business insurance.
- Workers’ Compensation Insurance: pays for the medical care and lost wages of any employees who are injured on the job.
