What steps must be taken to start a new business?

To accomplish an important goal, it may take days, weeks or months of planning, if not longer. Proper planning often means that, in addition to plotting out how success will be achieved, Michigan residents must try to anticipate and prepare for other events that may occur in the future.

In the business world, planning to start a new business is crucial to long-term success. This planning begins from before the time the new business is formed, as individuals must properly plan to be able to get the business up and running. As discussed last week in this blog, this can be easier said than done, as there is no shortage of challenges that new businesses face.

There are several steps to proper business planning. For instance, individuals typically must create a solid business plan that will be a guide for how to run the business in a successful way. There are also a series of logistical steps that must be taken, including selecting the right business location and obtaining financing for the business.

Each of these steps can involve its own challenges. For example, in selecting a proper location, the business owners may need to negotiate leases and comply with or seek to make changes in zoning. Likewise, financing the business can involve many different options, from government loans to venture capital and research grants.

A new business must also comply with applicable state and federal laws. This includes registering the business with the state, obtaining a tax identification number, and complying with other federal, state and local tax laws. The proper licenses and permits must also be obtained from the relevant entities.

Ultimately, these are just some of the steps that must be taken to get the new business up and running. There are a host of other challenges that occur once operations begin, from complying with tax laws to understanding the various responsibilities placed upon employers to their employees. Accordingly, while starting a new business can be the realization of a lifelong dream, proper planning must be done to ensure success.

Source: U.S. Small Business Administration, "9 steps to starting a new business," accessed on April 9, 2016