There’s no doubt that for most of us, the American dream entails breaking free of the shackles of your regular job and starting something for yourself from the ground up, but learning how to start a small business can be extremely daunting.
For many, they simply give up before they even get started when they find themselves overwhelmed with small business basics and head back to their regular jobs.
There are so many new things to consider when you start your own business and are no longer an employee, as everything from your bank accounts to the office supplies you’re in charge of will now change. However, there are so many benefits to be found from owning your own business and it’s one of the most rewarding things you’ll ever do if you can get it right.
Learning how to create a business doesn’t have to be tough, though, provided you are willing to put in dedication and effort to the planning stages and ensure you’ve covered all of your bases.
We’re here to show you the essential parts of how to open your own business from the stationary to the marketing strategies so that you can focus on making your business profitable.
In This Article You Will Learn...
What Everyone Should Know Before Starting Their Own Small Business
Some people have wild visions about starting their own business without giving much thought to how much work goes into the building and management stages. According to Entrepreneur Magazine, there are some things to remember before you begin building your own business:
How To Register Your Business
When you’re ready to get started with your business and have the ideal name chosen out, you’ll need to register it. In the United States, there are certain steps one must take to register a business so that it can operate as a legal entity.
Human Resources And Staff Management
One of the biggest differences between owning your own business and being an employee is the shift in responsibility that you’ll now have. When you’re just starting out, you’ll usually be responsible for the human resources side of the business and be in charge of hiring your first employee.
Hiring an employee brings with it a lot of new responsibility, legal requirements, costs, and manpower. According to the experts, there are some things you shouldn’t neglect when hiring a new employee, as up to 40{eb986bb2f6b1f2e9ae384e8f509f8e353afe32b502c6bed68166f59fa5ed128a} of applicants admitted to falsifying some information on their resumes.
Do a background check and be sure to check all of the references provided by your potential employee. If necessary, a police check can be conducted with the consent of the applicant.
If you feel it’s suitable, inform candidates that there will be a preliminary drug test and ongoing random tests at any given time during their employment. This can sometimes eliminate those that might be trouble in the future.
Use screening practices to help weed out some candidates. There are psychological screening tests, skills and aptitude tests that can show you the stronger candidates before you get past the interview stage.
Once you’ve hired your new employee, you’ll need further information from them including social security number, identification, financial details, tax forms, and insurance coverage. Take your time to ensure you’ve checked off all the boxes otherwise, there can be serious financial and legal consequences.
Financials Of Small Business
Before you even start your small business you should have opened at least one separate business bank account. You’ll need to keep a careful record of all of your income, costs, and anything else related to the business financially and be able to supply these at any given time.
Many small businesses like to have a company credit card that can be used for purchases pertaining to the business, and these sometimes come with additional perks. Some companies will give you additional points or interest-free periods for purchasing stationery, for example, so it’s best to shop around and find one that suits your company’s needs.
After some time, you may require a small business financing or line of credit to help move your business along, but there are usually stipulations in place from lenders about what they need from you which can differ somewhat to getting a personal loan. You should be able to prove how long you’ve been in business, what your revenue is, and how good your credit score is.
How To Find The Right Office Space
Having the right workspace for your business is essential to your productivity, so it’s an area that requires a lot of research and planning.
Modern offices are quite different to those of the past and there are now more options for flexibility for how you work, so it all depends on the type of business you own and where you find your productivity. Here are a few options that you might want to consider when looking for your office space:
Working From home
This is a popular choice for those who work alone or run a small operation as it allows you to save on costs. By dedicating a space in your home as an office you’re able to cut down on the commute and have access to your office whenever you need.
There are certain tax write-offs available for those who work from home, so be sure to keep your receipts for any costs incurred while working at home.
Coworking Spaces
A recent trend in workspaces is the coworking concept which sees individuals from different businesses and organizations come together as individuals and work in a shared setting.
These are usually large office spaces that allow you to rent your own desk for a fairly affordable price which means you work separately on your own business but with the community and networking benefits that you won’t be able to find working from home.
Office Rentals
The most traditional type of office spaces comes from commercial leasing, and depending on your area there should be many different options available. You’ll need to consider the monthly rent, other fees, access, locality, and space for other employees so be sure to take your time looking at many different options.
Commercial Property Purchase
Some businesses may have the capital available to purchase their own commercial property which can save from the ongoing costs of renting a space. Before investing in real estate be sure that you have enough capital leftover for other costs so that you don’t have to rely on debt down the line.
The Right Supplies For Your Business
With your prime office space chosen out, you’ll need to get it equipped with the right furniture. Unless you’ve chosen a coworking space for your office, it will be your responsibility to stock up on the office supplies and furniture you might need. Here are a few things you consider:
Small Business Marketing Strategies
Once your business is up and running, you’ll need to now work on growing your company and bring in more customers. Marketing is an essential part of any business, small or large, and there are many different avenues you can try.
Some prefer to hire a marketing specialist whereas others take the task on for themselves, so here are some popular marketing strategies known to work in small business.
A Little Planning Goes A Long Way
Starting your own business is a huge risk, but hopefully, one that will pay off significantly if you get things right. Too many people rush their way through the process without giving careful thought or planning to the process and as you can see there are many things to be considered.
According to the US Bureau of Statistics, small businesses have never done better in this country, so it’s a sign that they can definitely work when you’re ready to put in the hard work yourself.
Take your time to work your way through the list and ensure that you have everything checked off before moving on, and you’ll find the entire process a lot smoother, giving yourself the best chance to make a profit.