Initial Questions to Ask When Starting a New Business
Initial Questions to Ask When Starting a New Business
One of the first areas of concern for any business is its public persona, i.e. its business name. What is your business going to be called? There is a lot in a name. Get a sheet of paper and brainstorm words that are related to your business. Make sure the domain name is available. Do a Google search and determine if anyone else is using the name in your area of industry. You may also want to consider registering the name as a trademark either in your state or federally.
2) Will you operate as a sole proprietorship or form a business entity?
How you will operate your business will have an effect on many other decisions, and should involve the assistance of a qualified tax accountant. A business entity may take one of many forms: the most prominent are sole proprietorship, corporation (Subchapter C or S), partnership, limited liability company. That decision will, in part at least, determine what type of documentation you need to submit to the state in which your company’s principal place of business is located. One factor that weighs in favor of forming either a corporation or limited liability company is that these business entities offer a form of protection against personal liability (i.e., your house, car and other personal possessions). As indicated, the choice of entity will also affect how you are taxed and what taxes you are paid.
3) Gain a general understanding of the laws affecting your area of industry
While you don't have to go to law school, you should certainly "do your homework" and research the laws regarding your industry. Google is always a great place to start you basic research. Then, of course, there's always the traditional methods, bookstores, libraries, etc. Find out as much as you can about the legal aspects of your business prior to retaining a lawyer. Does your type of business have any type of license requirements, or is a standard business license all that is required? Does it require any permits? For example, some state require that a booking or talent agency be registered with the state. Of course, most professionals must be state licensed. There may be special laws that apply only to your specific industry. Are there federal laws that you have to comply with, such as OSHA, EEOC, or the various environmental laws and regulations, in addition to the standard tax codes. Much of this information is easily attainable on the various governmental web sites.
4) Hire a lawyer, banker and accountant.
There are certain people that just help you get your business off the ground: a lawyer, banker and accountant. While judicial use of the lawyer and accountant may be necessary, you should certainly consider forming a good relationship with all three professionals. Choose a lawyer and accountant that have particular experience in your area of business. Choose a local banker who is hungry for business. Make appointments with them and sit down and talk to them about what your plans are for your business. You can tell more about a person in a ten minute face-to-face than you can from hours of phone calls or reading a resume. Ask the lawyer and accountant about flat rates for certain services, such as establishing your limited liability company, for example.
5) Consider finding an insurance agent.
Small businesses can be devastated by small disasters: fire theft robbery, vandalism, slip and falls. You should consider what types of insurance are necessary to protect your business. Do you need CGL coverage (comprehensive general liability), accident, error and omission, fire, theft, etc. Consideration should also be given to insuring your health and loss of income, since most small businesses operate as a result of one or two person's efforts. Ask your lawyer, accountant and banker for recommendations and get quotes from several agents before making any final decisions.
6) Consider drafting a business plan.
Writing things down can be beneficial from both a theoretical and practical point of view. Seeing the numbers on paper can help focus your attentions on the things that are important. Figure out how much money your are going to need to operate your business for at least three to five years (the average time it takes for a small business to get going). Write a mission statement. Consider your competition and how your are different. How are you going to attract customers. Develop a budget. Develop goals. Project your income and expenses. These types of exercises can help you spend your energies wisely. A well-developed business plan can also be used to obtain funding for the start up, either in the form of small business loans or venture capital.
Initial Questions to Ask When Starting a New Business - To learn more about this author, visit Barry Shrum's Website.
Like this article? Share it with your friends
1) What is the name of your business?
One of the first areas of concern for any business is its public persona, i.e. its business name. What is your business going to be called? There is a lot in a name. Get a sheet of paper and brainstorm words that are related to your business. Make sure the domain name is available. Do a Google search and determine if anyone else is using the name in your area of industry. You may also want to consider registering the name as a trademark either in your state or federally.
2) Will you operate as a sole proprietorship or form a business entity?
How you will operate your business will have an effect on many other decisions, and should involve the assistance of a qualified tax accountant. A business entity may take one of many forms: the most prominent are sole proprietorship, corporation (Subchapter C or S), partnership, limited liability company. That decision will, in part at least, determine what type of documentation you need to submit to the state in which your company’s principal place of business is located. One factor that weighs in favor of forming either a corporation or limited liability company is that these business entities offer a form of protection against personal liability (i.e., your house, car and other personal possessions). As indicated, the choice of entity will also affect how you are taxed and what taxes you are paid.
3) Gain a general understanding of the laws affecting your area of industry
While you don't have to go to law school, you should certainly "do your homework" and research the laws regarding your industry. Google is always a great place to start you basic research. Then, of course, there's always the traditional methods, bookstores, libraries, etc. Find out as much as you can about the legal aspects of your business prior to retaining a lawyer. Does your type of business have any type of license requirements, or is a standard business license all that is required? Does it require any permits? For example, some state require that a booking or talent agency be registered with the state. Of course, most professionals must be state licensed. There may be special laws that apply only to your specific industry. Are there federal laws that you have to comply with, such as OSHA, EEOC, or the various environmental laws and regulations, in addition to the standard tax codes. Much of this information is easily attainable on the various governmental web sites.
4) Hire a lawyer, banker and accountant.
There are certain people that just help you get your business off the ground: a lawyer, banker and accountant. While judicial use of the lawyer and accountant may be necessary, you should certainly consider forming a good relationship with all three professionals. Choose a lawyer and accountant that have particular experience in your area of business. Choose a local banker who is hungry for business. Make appointments with them and sit down and talk to them about what your plans are for your business. You can tell more about a person in a ten minute face-to-face than you can from hours of phone calls or reading a resume. Ask the lawyer and accountant about flat rates for certain services, such as establishing your limited liability company, for example.
5) Consider finding an insurance agent.
Small businesses can be devastated by small disasters: fire theft robbery, vandalism, slip and falls. You should consider what types of insurance are necessary to protect your business. Do you need CGL coverage (comprehensive general liability), accident, error and omission, fire, theft, etc. Consideration should also be given to insuring your health and loss of income, since most small businesses operate as a result of one or two person's efforts. Ask your lawyer, accountant and banker for recommendations and get quotes from several agents before making any final decisions.
6) Consider drafting a business plan.
Writing things down can be beneficial from both a theoretical and practical point of view. Seeing the numbers on paper can help focus your attentions on the things that are important. Figure out how much money your are going to need to operate your business for at least three to five years (the average time it takes for a small business to get going). Write a mission statement. Consider your competition and how your are different. How are you going to attract customers. Develop a budget. Develop goals. Project your income and expenses. These types of exercises can help you spend your energies wisely. A well-developed business plan can also be used to obtain funding for the start up, either in the form of small business loans or venture capital.
Initial Questions to Ask When Starting a New Business - To learn more about this author, visit Barry Shrum's Website.
Like this article? Share it with your friends
 | |
 |
No article feedback found. |
| |
Leave Your Feedback |
 | |
| |||
David BarrDavid Barr is the President of Venture Opportunities, Inc. David has been a professional business broker/intermediary since 1980 focusing on General Business Brokerage and Mergers and Acquisitions representing client transaction value from $400,000 to $20,000,000. Mr. Barr has handled the sale of over four hundred and fifty companies. David earned a university degree from the State University of New York majoring in economics and business. David holds the Mergers and Acquisition Master Intermediary and the Certified Business Intermediary designations from the International Business Brokers Association. He is also a Senior Business Analyst and a Texas licensed Real Estate Agent. For more information about David and Venture Opportunities, visit www.bizdealmaker.com. - Visit David Barr's Website |
|||
Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
|||
Casey GollanCasey Gollan, Business Coaching & Mentoring Programs. Add $1 Million to $10 Million in the next 1 to 3 years. Since 1996 Casey has to added hundreds of millions of dollars to businesses. Watch a free video see client results Business Coaching website. - Visit Casey Gollan's Website |
|||
Kim CastleWith nearly two decades in the advertising and design business, with clients like Domino's Pizza, General Motors, Direct TV, Pedigree, Wolfgang Puck, Higher Octave Music, Hollywood Celebrity Products, Disney, and Paramount, as well as thousands of entrepreneurs around the world define, structure, communicate, and position their business for greater profits, BrandU(R) co-creators Kim Castle and W. Vito Montone discovered that entrepreneurs could experience the same power that big brands command for a fraction of the cost with the world's only process-based results-drive Integral approach to business creation. BrandU(R) is helping entrepreneurs grow with the power of extreme clarity from idea...to brand...to market(TM) and helping one million entrepreneurs become successful and whole so that they can make a difference in the world. Are you one of them? If you want to experience clarity all the way to the bank(TM), get started now at http://www.brandu.com. - Visit Kim Castle's Website |
|||
Jeff FosterWebBizIdeas.com is a Minneapolis website design company founded to help people start an internet business by providing them with website, business, and internet resources that help foster the growth of successful online businesses and develop innovative Internet business ideas. We specialize in internet consulting & internet marketing. - Visit Jeff Foster's Website |
|||
David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
|||
Leanne Hoagland-SmithAre your sales where you want them to be? Will you be one of the few who achieves sales or business success or one of the many who have failed to change? Are you tired of being told you are like everyone else? Then you may find my first book on sales of interest. Be the Red Jacket in the Sea of Gray Suits, The Keys to Unlocking Sales available at Amazon or at http://www.processspecialist.com/red-jacket.htm. This book is a reflection of my no-nonsense approach to improving sales to overall business results. If you are truly committed to making sustainable changes, then I can help you secure a positive return on your investment because I focus on executable solutions not telling you the problems you already know you have. From training to corporate (group) coaching to executive one on one coaching, my approach is to assess, create awareness, build a goal driven action plan and then execute. The bottom line question is "Not do you or your employees know it, but do you or they want to do it?" Please call for a free strategy session at 219.759.5601. - Visit Leanne Hoagland-Smith's Website |
|||
Cheryl MatthynssensCheryl is a life skills coach, licensed Chemical Dependency Counselor and a 20 year entrepreneur. Cheryl's dedication to achieving a life of balance led to her expanding her teaching from the simple managing of life's daily challenges to adding financial well being as well. A direct marketer with DrinkACT, she is gaining ground in the online community with her concepts of making sure business owners, entreprenuers and employees have well rounded life styles. She opened up a small affiliate site - The Balance Guide- to help others find resources for mental and emotional well being. Visit Cheryl's blog to see more of the diversity beyond business she has began offering online at www.thebalanceguide.blogspot.com - Visit Cheryl Matthynssens's Website |
|||
|
To learn more about the Evan Elite Author Program please contact us. | |||
 | |
|  |
Subscribe to Barry's articles
 | |
|
|  |
 | |
|
| |
 | |||||||
|
 | ||
 |
||
|
||
 |
||
|
| ||
 |
| Have you written articles that would be of value to entrepreneurs? Become an expert on our site by publishing them! Expose yourself to a wide audience, drive more traffic to your website and get more sales! Click Here for details. |
|
|
 |
| Modeling the Masters: Learn the true secrets behind Walt Disney's business success factors & grow your company! Video produced by Phanta Media |
|
|
 |
"Learn straight from Evan how you can Make a Full Time Income (And More) from a Website"
Click Here To Learn More |
|
|
|
|
Get advice & tips from famous business owners, new articles by entrepreneur experts, my latest website updates, & special sneak peaks at what's to come!
|
|
|
 Emotions Drive Behavior Tax Splitting Example Get Ready for The Recovery The Human Network Networking Is The Future |
|
 | ||
 |
Top 50 SEO Posts - 2007
Top SEO Posts of the Year | |
 |
Top 50 Marketing Blogs
Top Blogs To Watch In 2008 | |
| ||
 | ||||
| ||||
|
| ||||
| ||||
|
|
|
|
|
||||||||||||
|
Email us your ideas on how to make our website more valuable! Thank you Sharon from Toronto Salsa Lessons / Classes for your suggestions to make the newsletter look like the website and profile younger entrepreneurs like Jennifer Lopez and Sean Combs!
|
|
|
