Before you start a business, it’s important to start off on the right financial path. This process can take a little time; however careful planning and implementation can save mistakes and time down the road.
Here are some guidelines we put together to help you get started on the right foot.
#1: Write a business plan that includes your start-up capital requirements.
- Identified the start-up expenses required and allocated capital for those requirements.
- Identify financial goals, both short term and long term, and create a plan to achieve those goals.
#2: Investigate your options, or seek out assistance, and register your business with required government agencies. Chose which entity is a fit for your business:
- Sole proprietorship
#3: Protect your business name and filed the appropriate documents.
- Register "Doing Business As" name if you are going to conduct business under a name other than the legal name you filed with the Secretary of State.
- Be sure to conduct a trademark search to ensure that your unique company name isn't already being used.
#4: Create your articles of organization. (Articles of organization are required to open a business checking account.)
#5: Obtain your Federal Identification Number, EIN, from the IRS. (An EIN is often required to open a business checking account.)
#6: Open business bank accounts.
- Open a checking account.
- Open a savings account.
- Establish online banking.
#7: Determine which payment processing system you will be using
- Register for a payment processing system, i.e. PayPal.
- Link your payment processing system to your business bank accounts.
#8: Establish a system for proper accounting procedures. Find a system, like Quicken, or QuickBook or track your sales, expenses, and profits.
- Identify a source of accounting help and knowledge. (Note: Consider hiring an accountant and maybe a bookkeeper.)
#9: Start the process of establishing business credit.
- Obtain a business credit card. (Note: A business credit card helps separate professional and personal expenses and can help protect personal assets from business liabilities.)
- Obtain a small business loan.
#10: Obtain the necessary business licenses and/or permits for your area. Be sure to research and obtained the following:
- Insurance needs
- Permit needs
- License needs
- Investigate other insurance and government requirements for your business niche and local regulations.
Congratulations! Your business is now set up and you’re ready to start enjoying your efforts. It’s time to begin marketing, selling, and making money from your new business.