subject: Staring Your Own Business [print this page] Starting a new business is often a thrilling experience and sometimes people forget to do a basic business plan. Business plans can help you clearly see the goals you want to achieve and how you are going to achieve them.
There are three fundamentals to a good business plan: market research, funding and legal requirements for your business. The first two pages of the business plan should contain a concise summary which explains what your company is, what it offers, what makes it different from other similar companies and how it is profitable for potential investors.
Market research is mandatory for any strategic business plan. Market research is important as it specifies who your product or service is for, if there is an existing market for the product or service your company is offering, identifying the existing competition and stating how you plan to engage the competition.
It is also important to discuss the long and short term goals of your business, what you wish to achieve and the amount of time necessary for you and your business to achieve those goals. As a start up business, more emphasis should be given to the short term goals.
People are an important aspect in any business. The business plan details the management team that will be assisting in the propagation of the business, identifying the important skills that each individual will be offering for the success of the business.
The financial aspects must be carefully considered and stated in your business plan. The start up investment or capital needed must be thought through, as well as a list of possible expenses. It is also important to consider the amount of profit needed to break even with the initial investment.
To deal with the legal aspects of the business, it is also recommended that an attorney, specifically experienced in business matters, be hired. The attorney will be responsible in giving advice relating to contracts, lease, as well as a suitable business framework.
After creating the business plan, the location of the business must be considered. It is important to consider the distance between the company and the customers, accessibility, and limits in terms of zoning. There are also government incentives and tax exemptions which can affect the decision on where to put up the company. The government offers financing programs aimed to encourage small businesses so government business loans are something that a future business owner should consider. A legal name for the company must be registered along with the business name. Each state will have different requirements.
Each business must pay taxes. Check into your tax liabilities for your particular state and town. Examples of taxes include the tax permit, income and employment taxes.
Most importantly, business licenses and permits must be applied for. These are important in order to be allowed to open your business. Guidelines change depending on the area as well as the type of business. The site business.gov has compiled a list of permits and licenses required for businesses in the United States. You may need a seller's permit, building and zoning permits and possibly a health permit.
A seller's permit is required for businesses purchasing wholesale and reselling. Also known as a sales tax permit, these may be applied for from the State Franchise State Board agency. A building permit is required when building or remodeling your business space. You will also need a zoning permit. Also, the commercial space must also comply with existing building laws and guidelines. If food preparation is required, health permits must also be applied for.
Lastly, a home occupation permit should be applied for if in case the business being put up is home based. Fees might consist of a percentage from the annual total revenue or a fixed rate.
Once done with all the necessary permits, business marketing should be one of the main aspects to concentrate on. A good marketing plan is invaluable.
Copyright (c) 2009 Sherry Tingley
by: Sherry Tingley
welcome to Insurances.net (https://www.insurances.net)
