In 2023, there are an estimated 333.34 million businesses worldwide. It shows a marginal growth from 2021 when there were only 314.21 million businesses and a pandemic that affected almost everyone globally. Today, more and more people are starting their businesses and thriving at that!
Are you also thinking of starting a business? If so, then you’re probably overwhelmed and lost right now. Thankfully, today, we’ll talk about the business checklist for all (or most) things you need to start your business. It’s easy to get lost in the early stages, and using this checklist can be your roadmap to build and run your new business.
Capital
A business checklist won’t be complete without capital. Naturally, the rate would depend on what business you’re considering starting, your brick-and-mortar rent, and more. Startup capital also includes payments for permits, marketing strategies, and types of equipment, among others.
You can get CreditNinja installment loans to cover startup business-related expenses like permits or marketing strategies. The reality is that raising your capital can be challenging, and it’s one of the main issues that have to be addressed if the businesses can at all.
Another source of capital is attracting investors to fund your business. Just like you, investors want to see your venture succeed, so they’re more likely to help you at the start and with any additional needs in the future. Further, having a credible investor supporting your business gives your company an excellent reputation and credibility.
Business Insurance
Before you operate, you must get business insurance to protect your business from everything you can think of. There are numerous types of insurance for businesses. However, the most basic packages are usually named “General Business Insurance” or “Business Owner’s Policy,” and these usually cover everything from product liability to company vehicles. Decent policies like these can cost you about $300 annually and offer excellent protection for your business.
Business Plan
A business plan may be the first thing that you have to obtain. It describes the items you plan to sell or what services you want to offer in your company. A business plan describes and explains how these services can benefit your culture and the product lifestyle. Having a clear plan enables the owner(s) and employee(s) to envision the company’s true goal.
Another important aspect of a business plan is if you cannot shoulder all of the business’s expenses on your own. You can use a business plan to win over potential investors and lenders to trust your vision.
A business plan includes your financial plans and projections, marketing strategy, market analysis, executive summary, and products and services.
Company Bank Account
When building a business, you should separate your company finances from yours. Search the credible and top banks for businesses in your area and contact them before opening an account. Doing this allows you to ask for their specific requirements to open a business checking account. It’s essential to do this because some banks have pretty simple requirements while others are incredibly complex.
Sales Tax Permit
Does your company plan to sell physical products? If so, then you may have to get a state sales tax permit where you do your business. You would collect this by adding it to your products.
A sales permit tax is usually accompanied by obtaining a Resale Permit or a State Seller’s Permit. However, some states don’t require you to collect sales tax if you aren’t planning on selling a physical or tangible product. To ensure that you follow the tax rules, it would be best to ask the State taxation agency in your area for further clarification and instructions.
Business Identity
Like any business, you need an identity that differentiates you from similar businesses. Having a business identity helps consumers easily identify you from other companies. If you want to get started on this, order business cards, promotional materials, and a letterhead for your company.
But before you get started, you must have a professionally created logo to ensure that your business looks professional and established.
Your business identity includes the name of your business, products, and services. It also includes trademarks and logos.
Employees (if applicable)
If you plan to hire employees, you should read recruitment strategies to get possible hires interested in working for you.
To find employees, you can put a sign or post or leverage word of mouth and referrals. You may even look through agencies and pay the company for the cost.
When hiring employees, it’s best that you hire someone with the experience that can help your startup business.
Business Structure
When creating a business structure, you would have to determine the following. It ranges from determining the level of involvement to adopting innovative business structures.
Determine the Level of Involvement
Before you start creating a business structure, you should determine the level of involvement for all parties, especially you, as the business owner. Determine if you want to come into the business with a partner or a family member. If you want to be involved in the day-to-day operations or just be in control of all your business operations.
Answering these questions enables you to create a business structure where you can follow a C-Corporation, sole proprietorship, or limited liability company (LLC). Let’s talk about these three further:
- C-Corporation: It’s a business structure where the business owners are legally separated from the business itself. It means that the business can issue shares and pass the profits to the owner, limiting the liability of the directors and shareholders. McDonald’s, Apple, and Starbucks are a few of the suitable examples.
- Sole Proprietorship: Compared to C-Corporation, this business structure is an unincorporated business where a single person owns and manages the business. The business and the owner aren’t legally separated. It means that the business owner has a say in what goes on in the business. This business structure is also known as sole trader and individual entrepreneurship. It’s the simplest form of business structure.
- Limited Liability Company: LLC is a business structure used in the United States. It protects the owners from personal responsibility for the business debts and liabilities a business would have. These hybrid entities offer limited liability protection and pass-through taxation since they legally separate the business or entity from the owners.
Create Structure
Creating a business structure may be the last thing on the minds of business owners. They may not even realize the need before hiring their first employee. Thankfully, you’re on this page and know how essential it is for your company. It’s pretty risky to operate without one since you would need to ensure whether or not you’re separated from your company in terms of liability and debts. So, it’s recommended that you just go ahead and create a structure for your company.
Just Splitting It
Do you have partners? If so, there should be at least one person with a majority share. Avoid splitting it 50/50 with your partners since it’s just a recipe for disaster. Think of it this way. If you have to agree on a decision and both of you disagree, you will eventually reach an impasse. Ensuring that one person gets 51% of the company shares enables them to determine the true leader of the company. Doing this would reduce the risk of infighting around decisions, and you can just move forward with minimal delays.
Adopt Innovative Business Structures
We can all agree that everything is new, and everyone is taking and searching for innovative ways to operate. As an entrepreneur, you must find and adopt innovative ways to operate your business. Practicing traditional hierarchy and departmental setups can have drawbacks for your company. These methods can be dated and not conducive enough for the business you want to create in the 20th century.
If you want to attract solid talent to your company, an innovative setup and business structure is the way to go. For example, having a communicative work environment where employees can grow and create an impact is something that the generation of today would like to experience in their work. A creative and open environment enables your employees to feel like they’re part of the environment and encourage a productive work environment.
Business Mentor
Having a business mentor is necessary if you’re just starting as an entrepreneur. Find someone or an organization you can go to for honest feedback about your business and decision-making. You can contact small business development centers or small business associations. These are organizations that open their doors to first-time business owners like you.
If this isn’t possible in your area, you may even reach out to your professors back in your university if they’re open to being a business mentor or simply lending an ear.
Final Thoughts
Thinking of starting a business and trying to make it stay afloat isn’t easy. Many businesses fail at the start due to how slow things can be (which you have to be prepared for). It’s a big feat, and you should pat yourself on the back for even thinking of starting one.
Do this, and get the things mentioned above to start your business journey officially. These are essential items that help protect you and your business (even your employees) from any mishaps in the future.