How do I start my own business?

Starting a business is a dream for many people but there are important legal steps new entrepreneurs should be familiar with during the business planning process. Hopeful entrepreneurs starting a business may wonder what some of the steps to starting a new business are. The first step is to write a business plan that will help guide the business owner and business towards a successful future.

There are many challenges a new business may encounter so it is important to be familiar with all of the resources available to help a new business and new business owner. Following the development of a business plan, it is important to know how to secure financing and to have a working knowledge of the different types of financing that may be available for the particular business.

Next, it is important to also be prepared to select a location for the business and be prepared for the expansion of the business as it grows. It is important to keep zoning laws in mind and select a location that is favorable for attracting customers. An important consideration that should not be underestimated is deciding on the best business form for the goals and needs of the business. There are several different types of business forms that are available including a Limited Liability Company, corporation, partnership or sole proprietorship, as well as others. Finally, it is important to comply with any applicable local regulations related to registration, licensing, permitting and employment laws.

Planning is important but so is managing the business which should not be forgotten. Once you have a business plan to provide direction, have secured financing, have selected a location and the best business form for your business, you are largely ready to go but should not forget about the importance of managing the business into the future and being familiar with the legal requirements associated with operating your business to help ensure both its successful formation and future.

Source: U.S. Small Business Administration, "10 Steps to Starting a Business," Accessed June 15, 2016