How to start your own business

Feeling the entrepreneurial itch? Ready to revamp your career in 2021? If you’ve always dreamed of owning your own business, the new year is a great time to take stock of professional opportunities.

While entrepreneurship may not be the right fit for everyone, owning your own business is a uniquely fulfilling and rewarding endeavor. It’s also a big challenge! While owning a business certainly comes with its perks (like a flexible schedule and being your own boss) you’re also saddled with an enormous amount of responsibility.

Still ready to get to work? Let’s make your vision a reality!

Decide on a product and conduct research

If you’re hoping to start a business, then you probably already have a few ideas for a product or service. Once you’ve settled on a concept, ask yourself: what makes this service unique? How will this contribute to the business community? Who is my target audience?

While these questions may be difficult to answer initially, a little online research may yield quick answers. Check to see if an established business already offers a similar product, and if so, determine how you can differentiate your brand. Additionally, try to get a sense of your ideal customer, and note which business models appeal to those clients.

Write a business plan

A well-thought-out business plan is the key to success down the road. After all, you wouldn’t embark on a road trip without a map! Your business plan should include:

• A business summary – Briefly describe your product and business goals (think of this as your “spiel”).
• A financial plan – Although it may be too early to get into specifics, it’s imperative to create a preliminary financial plan. Jot down estimated expenses, and decide whether you’ll need to apply for a loan to get things off the ground.
• A marketing strategy – Think about how you’ll market your product to potential clients, and if you plan on doing your own marketing or hiring a marketing consultant.
• 3-5 year projection – While it’s unwise to become too attached to a future plan, it’s still a smart idea to have some basic goals and projections for your business’s growth.

Choose a business structure

We’ve arrived at the legal portion of your business journey! Your company’s legal structure determines several aspects of how your business functions, but most notably, how your business’s structure influences taxes.

Whether you opt for sole-proprietorship, a partnership, or a corporation, keep in mind how various structures influence taxation. Draw up a list of pros and cons! Remember, regardless of which business structure you choose, it’s always a great idea for business owners to work with a sales tax consultant to avoid tax filing errors.

Assemble a team

Once you know what type of company you’re starting, it’s time to think about the key players. Before you sit down for interviews, here are a few things to consider:

• Employee benefits – While you may not be in a financial position to offer top-of-the-line benefits right away, it’s important to consider your options. Take into account which required benefits apply to you (like workers’ comp and unemployment insurance) and craft a benefits package that appeals to prospective hires.
• Employee roles – Clearly outline expectations and roles for each employee. When everyone is on the same page about responsibilities, business will run smoothly.
• Payroll systems – Decide on employee salaries and determine the most efficient way to pay your employees each month. If you’re managing your own accounts, utilize accounting software to keep things simple.

 Stay flexible

Starting your own business can be a bumpy road. With so many responsibilities to juggle, it’s easy to make mistakes. When you find yourself in a predicament (and there will be a predicament) remember to stay flexible. After all, business isn’t only about balancing books, it’s also about rising to meet new challenges.