When you are trying to start a new business you’ll find there's an endless list of things to do. So, you will need to create a list and figure out what needs to be done sooner than later so that things get done in an orderly manner. The 6 most important items at the top your list should include:
- A written business plan. Having a plan in place will be very useful for both you and your lenders. It should include:
• The names of the business owner(s).
• The legal entity of the business.
• Your qualifications to run this type of business.
• The products and services you will sell.
• Identify your target market and how you intend to entice prospective customers through
• The amount of funds needed for the startup and the sources of those funds.
• Projected financial statements for the first couple of years.
• Insurance requirements and possible lease agreements.
- Location. This may be one of your most important decisions. If you’re plan includes a brick and mortar, be sure you are in a suitable location with adequate parking. Find an area that other businesses will compliment yours and if possible, similar clientele. However, if your business is online sales only, location isn’t likely an issue.
- The legal entity of your business. What legal form of business do you want to operate? Should you incorporate, operate as an LLC, a partnership, or sole proprietorship? It is imperative that you discuss these options with your accountant and attorney early in the business planning stage. There are very valid tax and non-tax reasons for selecting a given entity.
- Necessary licenses. To avoid any possible delays, apply for the correct permits and licenses early. If you need help, your accountant and attorney can assist you with applying for the necessary permits and licenses.
- Register with tax agencies. Your accountant can help you with the proper registration for the taxing and filing authorities such as the IRS, the state and local agencies, and worker’s insurance if you have employees.
- Include advisors. It will benefit you to involve your business advisors such as: a banker, an attorney, an accountant, and an insurance agent in your planning. Before you make any sizable financial commitments, get assistance from your advisors.
Utilizing the advice of your professional team will help your new business become a success. At Summit CPA we offer multiple resources get your new business started on the road to success. For more information contact our office at (866) 497-9761 to schedule an appointment with our advisors.