Essential steps for starting your small business

Every potential small business owners knows that it takes determination, motivation and a great idea to start a business. If you have that great idea and want to start a business you may be overwhelmed with the number of steps that it takes to get started. However with a little planning and research you can efficiently move through all of the steps and get your business up and running. Here are the essential steps for starting your small business

• Clearly identify what your business opportunity will be-It is crucial that you have a clear understanding of what your business will be and who you will sell to. Simply having a generic idea is not enough. You must clearly identify your products or services along with your potential target market. It is also important to determine where your passions lie and to understand your personality type. In addition it is equally important to know what skills you bring to the table and whether you are entering a dying industry or a fast growing emerging business.
  
• Write a great business plan-Having a great business plan allows you to gain a better understanding of your industry structure, competitive landscape, and the capital requirements of starting a small business. Studies have shown that companies with a business plan have 50% more profits and revenue than non-planning businesses. Writing a business plan just makes good business sense. If you are unsure of how to get started there are many sites online that give you the guidance you need.
  
• Get the start up money you need-This journey of finding money will be different for every small business owner. This is because some start ups such as consulting, only require a few thousand to get a website and business cards whereas a retail store could need $100,000 or more. Keep in mind that finding the money you need may come for a source you never thought of or may just end up being the frugal bootstrap method.
  

• Choose the right business name-It can mean everything to choose the right name for your business. This is because having the right name will help you distinguish your small business from your competitors. It can also be influential in helping your customers find and aid in the branding of your business.
  
• Decide on a business structure-Experts stress that this is not a decision that should be taken lightly. Whatever business structure you choose will have a serious impact on your business liability, fund-ability as well as any taxes due. Keep in mind however that you should not worry too much about your ultimate business structure, because as your business evolves, so too, may your structure.
  
• Do it all legally-This is time to get all of the necessary business licenses and permits. It is important to remember that starting a small business requires mundane, yet necessary, paperwork and regulations. Keep in mind that depending on your chosen business structure may also need to register your business with the state authorities. Setting up your small business may require an employer identification number (EIN) which is also used by state taxing authorities to identify businesses. Additional paperwork can entail sales tax licenses, zoning permits and more. If you are at all unsure this is the time to consult your attorney or accountant to make sure all of the necessary paperwork is completed correctly. At this time you will also want to explore the risks of your particular small business and make sure that you have right insurance to protect you and your business should any problem arise.
  
• Determine the right business location-Will you need a store-front or will just a website be running your business. This is the time that you locate your office and buy the necessary equipment and supplies to get your business up and running.
  
• Create your bookkeeping system-With everything else in place now is the time to set up the books. Setting up the right system will get your business off on the right foot. Once you have your accounting system in place it is now time to open the doors (whether storefront or website) and get on road to growing your small business.