What's Involved in Starting a Business?
When starting a business, it can be a logical next step or the culmination of a lifelong dream. But whatever motive drives your entrepreneurial spirit, you'll still need to go through the same basic steps so your company starts on the right foot. At Accountrely, we've helped many businesses with the startup process, and have found the following common elements.
Create a business plan. Having a solid business plan clarifies goals while determining your business' marketing, management and financial needs.
Calculate startup capital needs and sources. How much money will you need to get started? Startup capital gets your business off the ground while you're establishing your place in the market.
Determine borrowing ability. Where will the necessary funds will come from. Part of that is determining how much you can reasonably borrow from financial institutions.
Choose the right business organization. Are you a sole proprietorship, corporation or partnership? Having the right structure ensures your future success.
Select the right accounting package. Which software will work best for your situation? Just picking up QuickBooks may not be the right choice for your business.
Prepare a cash flow budget. When you have a cash flow budget, it's much easier to determine how much you need to bring in to remain profitable.
Establish bookkeeping procedures. How are you handling billing, collection and outgoing costs? Procedures make easier to keep moving.
Prepare and file local and state filings. Do you need licenses or permits to operate your business? If you don't get them, you may face heavy fines.
Prepare for payroll and payroll tax filing. When you have employees, you'll need an FEID number and ensure withholdings are handled properly.
Provide guidance on employment laws. What can and can't you do in your business? Knowing employment laws helps you avoid lawsuits and fines.
Identify and calculate insurance needs. What's needed to stay operational in a crisis? Insurance gives you what's needed to keep your business moving in a crisis.
By knowing what to expect when you start your business, you can ensure you're avoiding legal issues while having the right resources in place. If you need help getting your business going, please feel free to contact the experts at Accountrely. We're happy to do the leg work with our business startup service while you focus on making your dreams come true.