If you have a wonderful idea for a business, then you may be wondering how you can get it started. While different techniques can be used, you will want to consider many different facets of starting a new business. Here are four key things you will want to consider before you start your brick-and-mortar or online business.
Develop a Business Plan
While the type of business that you want to start will help determine your business plan, every plan needs at least four key components:
- Executive Summary: Tells the most important details about the business
- Market Analysis: Shows how big your market is, the strengths and weakness of five key competitors and includes an actionable marketing plan
- Executive Biography: Explains why you are the perfect candidate to start the company
- Financial Plan: Highlights money coming in and going out of the business
Unless you have lots of money, you are likely to need to find ways to finance your new venture. Some people head to the bank to convince officers that they need a commercial or personal loan. Others participate in the Small Business Administration microloan program. Still, others convince friends and family to invest in their business. Others turn to the internet to raise funds through crowdfunding.
Create a Business Structure
It is best to separate your business from your personal life by forming a business structure. Consider a sole proprietorship where you are responsible for making all business decisions and assume all the debt. Your investors may want to become limited partners allowing you to make business decisions while they carry part of the responsibility if the business fails. There may be tax benefits to setting up a corporation. It is usually best to talk to an experienced lawyer before making a final decision.
Get a Patent
If you have novel ideas to bring to customers, then you will want to get a patent. Any invention or improvement on an item is patentable as long as it is useful to someone. Most patents will be utility patents for a machine, composition of matter or something that can be made. There are also plant patents covering the growth of new plant species and design patents showcasing a new design. Regardless of the type of patent that you need, you may need lawyers like those found at Carter West to help you through the process.
Starting a business can be a challenging thing to do. By following the above tips, however, that process should feel a lot smoother.