As exciting and tempting as it may be to want to start your new business startup with a Big Bang, there is a very high value to why you should start small as is feasible.
You need to break down your new business startup project of setting up your business in manageable sub-projects with specific tasks that can be checked off when done.
This practice will save you time in the end so you do not have to do as much re-work due to missed tasks that are discovered later on.
(This Part 1 of a 2 Part Series. A link to the Part 2 of this Series is provided at the end of this module.)
Before you even begin with preparations for your new business startup, the very first thing to do it to evaluate the idea. Most often this is best done by a third-party who do does not have an emotional attachment to the idea. Perspective will cloud the real picture if the concept is valid or not. A well written guide on Start-up Validity can be found here.
Whether you do a full blown and professionally prepared business plan or you jot something down on a note pad, you need to make a plan of attack for your new business startup. This business plan should be a fairly high-level plan with the principle items to be done and the reasoning or justification for your key items as well as the projections. Business Plans should be SMART as well.
Your Business Plan should not be set it stone, being Agile is important as things will change as your business progresses. These changes do not negate the importance of a plan however, the plan will be like a roadmap. We all know that when you set out on a journey and planning out your trip, at times there are obstacles and opportunities which require us to “re-calculate the route”.
This is a major roadblock for the best of ideas of a new business startup. This is where starting as small as possible is important. You may have an idea of grandeur but not have purse to back it. Financing a startup with a loan can be difficult because you do not have any history for the prospective lenders to view and all they base the loan on is collateral and business history. If there is not business history, the only thing left is collateral.
In general, getting a loan on an idea with nothing to secure the funding in the event of default, is generally not likely to happen. You need to build this into your Business Plan.
You can however, look at acquiring a company that has a history of sales. This is tactic of Merger and Acquisition Financing that can be used on any size of business, so this may be something to consider. You can find some information on that topic here.
Name Your Business
You will want to spend so effort here to come up with a unique and appropriate name for your new business startup . Then, you will have to do name searches at your business registration office to ensure the same name is not being used by someone else.
Get a Real Domain
You should spend the few dollars needed to get a URL for your website that matches your company name. This will help send the right message to your audience. Free hosting platforms and free email services like Gmail, Yahoo, AOL and the like send a message to your audience that you are not a Real company.
You will likely want to incorporate or organize your new business startup in some manner other than a proprietorship. This is a topic of discussion to have with your legal advisor or accountant/bookkeeper. There are many advantages to proper organization and they will vary depending on where you with to do the organization so it is best to get professional advice on the topic.
Apply for a BIN / EIN
Depending on which country you are organizing your business in, you will need to get a Business Identification Number or Employer Identification Number which you will need for various things in the process of running your business for things such as opening bank accounts, managing payroll, and the like.
Some businesses require specific licensing and this will also vary depending on your location so you will need to check with the local municipality to see if you need a license to operate your business and are not difficult to acquire. Generally it is a matter of filling in a form and paying a fee.
I truly hope this new business startup article was a helpful to you. It is by no means all inclusive of all the things that need be addressed when starting your business, but it is a good basis to start from. For your convenience, you can download the entire article by clicking the download button below.
Part 2 of this article may be found here after 2016-04-12.