Starting a new business is an exciting moment in the life of an entrepreneur. You’re stepping out confidently, relying on your skills, talents and vision to create a livelihood and a legacy. Whether you’re starting a side hustle or laying the groundwork for a large company, it’s essential to go about it the right way.
You will save stress, time and money if you follow these six steps when starting a new business:
1. Write a Business Plan
There is both an internal and external purpose for a business plan. For you and your management team, it’s a roadmap that lays out your goals and how you’re going to get there. For investors and lenders, it’s an indication you have a thought-out strategy and clear objectives for your company. It doesn’t have to be lengthy, but it should include a market and competitor analysis, your operations structure and details on your products and services.
2. Secure the Cash You Need
Businesses need capital. Even if start-up costs are low, there will come a time when you need an injection of cash and your business has a higher likelihood of success if you plan where this will come from ahead of time. Should you get a loan? Should you look to an investor? Do you have your own cash savings you can leverage?
3. Set up Efficient Accounting Practices
It doesn’t matter if you are a one-person business or plan on hiring a whole team – you need efficient accounting practices from day one. Neglecting to keep up your books can cost you both time and money. Our team at Robert L. Coval, CPA can help, and we understand tax law intricacies, making it possible to plan for tax time all year round.
4. Decide on the Right Business Structure
Should you file as an S-Corp or LLC? How do you obtain a federal tax ID? Again, these are questions we can help answer at Robert L. Coval, CPA. Business structure is one of the most critical decisions you’ll make in the early stages and will determine the regulations you need to follow and paperwork you need to file. We help you get your legal ducks in a row.
5. Get the Right Licenses and Permits
What do local authorities require to legally register your business? Licenses and permits ensure you’re operating in line with local regulations and protect you from fines.
6. Start Building Business Credit
Once you have the legalities squared away, make sure you open a business bank account. This can help you begin building the business credit you may need in the future to lease an office space or apply for a loan.
Starting a new business comes with its fair share of challenges, but no accounting question that we can’t answer. Robert L. Coval, CPA is the ideal partner to have on your side as you jump into business ownership. Schedule a free consultation with us and let’s explore how we can help your business on the road to success.