Have you ever dreamed of being your own boss? Of making your entrepreneurial dreams come true? So many people dream of starting a business. The big hurdle to doing so can often be juggling all the steps needed to get a business started. If you’ve been thinking about starting up a business, use these six steps to guide you:
Research and Plan Thoroughly
When you’re excited about a potential business venture, it’s understandable that you want to jump in with both feet and make things happen. Don’t lose that can-do attitude! But, at the same time, rushing in blindly can affect your future success. A solid business foundation starts with market research and a master plan. You’ll want to look around either locally or nationally to see who else might compete with what you intend to offer.
Once you’ve looked into your future competition and market saturation, it’s time to develop a plan. Consider everything from materials you’ll need upfront to marketing endeavors, space, and ongoing expenses. Don’t forget to include things like utilities, insurance, and even employee pay.
Figure Out Finances
This is one of the most difficult aspects of starting or running a business — especially for those who don’t have any accounting or business management training. Creating a financial plan should be part of your business planning, but it’s important enough that we feel the need to emphasize it as its own step. A major part of starting any new business is figuring out what you can reasonably anticipate in terms of financial need. Create a comprehensive sheet listing out all expenses, both upfront/one-time and ongoing.
The other financial element is finding the best merchant financing for your business. Everything from collateral and credit score to start-up capital and expenses will impact your business financing options. It’s a good idea to shop around and see what options are available to you. Working with a bank for a traditional business loan isn’t your only option! We also recommend looking at national financial help, not just local providers. A fintech-focused lender may be able to provide better options than a traditional lender.
Make It Legal
You’ll also need to decide how you want to set up your business. Is it going to be an LLC or a corporation? Will it have multiple owners or just you? Choose the best business entity option, and then go about making it legal. You may need to work with a business attorney to draw up the appropriate paperwork. After that, get your business registered.
Depending on your goods or services, you may require special licensing or permits to operate. For instance, a restaurant needs to pass food safety inspections and will require a liquor license if you want to serve alcohol. Do some research to see what is required in your area for your type of business.
Don’t let starting a business overwhelm you — especially when it comes to business financing. Do your due diligence, and connect with the team at Merchant ReFi to learn more about our merchant finance options.