It is to write your business plan and then read it over. This is a necessary step to guarantee that the details of your plan are all correct and that there are no obvious errors. You can find a sample business plan from the Small Business Administration or your state’s Office of Economic Development.
Then you will need to decide what kind of company you will be and what kind of business structure you will have. You will have to decide if you are going to be a separate legal entity or if you will be a corporation or an LLC. Once you have decided, the next step is to decide what kind of stock you will use. This may sound silly but you really need to think about this. If you do not do this you may end up in a situation where you have to do a lot of digging to try to find what stock the company was granted. Also you might need to set up a stockholder’s meeting in order to make changes to the corporate structure. The best way to do this is to get the advice of an accountant or attorney who is experienced with corporate finance. Finally, you will need to decide what sort of management you want the company to have.
Now, you will want to start contacting local businesses and find out if they are planning to file for a tax ID. It might seem unnecessary but filing for a tax ID is a good way to get press. You will need to find out what the tax rate is in your area and what tax rate the business you are planning to open will be charged. If you are in a high tax area, you will want to file for a low tax ID in order to save on taxes. You may also need to file for special breaks because you will be providing some type of incentive to the customer. Doing this will give you a special type license that you can then use in all other instances that you need a license for. This is a good way to get some free press.
Another thing you need to do is decide what type of office space you need. You will need to decide if you want one room or a penthouse. You also need to decide if you want a commercial space or an industrial space. You may also need to find out if you want office space or shop space or something in between. If you do not do this your company will be classified as a small business. In small businesses, you will get less access to investors. These investors will want to know that the business they are investing in is a legitimate business that will continue to exist in the future.
Once you have all of this information, you will need to find a location. This is one of the most important steps. Make sure it is in a high tax area so that your taxes will be good. Then find out if it is in an area that will provide you with good access to commuters. You may also want to find out if it is near a university or on the same campus as one. This will help with recruiting students and those that commute nearby. You will also want to find out if it is within walking distance to a supermarket and pharmacy. Do not forget to look at the school and university areas. Those retail areas that are near the schools will also give you access to the elderly and disabled people.
A business plan is also a must. You will need to know what you want to do and how you are going to do it. You will also need to determine how you will run the business and how you are going to market the business. You will also need to know how much money you need to bring to the company and how much money will be needed from your investors.
Lastly, you need to decide what type of corporate structure you are going to use. This will help you organize your business. You will also need to decide if you want to incorporate or if you want to be an LLC instead.
Having all of this information will put you one step closer to achieving your goal of owning your own business. Don’t forget to talk to your parents and others that you trust about how you are going to accomplish this goal.
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