Guidance to Set Up a Small Business

Setting up a business entails completing certain steps and following particular requirements. Some requirements are mandated by state or federal regulations and others are essential to the formation of a business. There are many resources available for potential business owners attempting to establish a fully operational business, such as websites designed to help new business owners and local government offices.

Industry Research

There are a variety of business opportunities in many industries. A business opportunity begins with a concept, and a potential business owner must study the industry to determine her niche in that market. Researching the industry also gives an aspiring business owner an understanding of how her business concept connects to the market. As technology continues to change, marketing strategies will change and staying abreast of industry changes helps a business owner remain competitive.

Business Structure

Establishing the business structure is an important step when starting a business. Many small businesses begin as a sole proprietorship, some start as a partnership while other business owners may decide to incorporate. A partnership begins when two or more individuals agree to enter into a business for profit. To establish a corporation, a business needs to create a charter and file it with the secretary of state.

Business Plan

The business plan is the overall outline of the business, and it essentially specifies the description of the business, products and services and business strategies. This plan also details the executive summary and the financial analysis. There are many websites that provide helpful tips about how to structure and implement a business plan, such as bplans.com and entrepreneur.com.

Start-up Expenses

Every business requires start-up expenses, which may be low or high depending on the business. For instance, the start-up expenses for a home-based business may require less capital than the expenses for the purchase or lease of a commercial structure. In general, most start-up expenses include utilities, office space, communication systems and office equipment. In addition, some businesses require licenses, permits and business insurance.

Licenses and Permits

Federal or state licenses and permits are required to legally operate some businesses. The Small Business Administration (sba.gov) provides information regarding the prerequisite government licenses and permits for businesses. Other sources for local business regulation information can be found at the state and local level. Additionally, local government offices offer information on zoning laws and other restrictions for certain businesses and their locations.

by Marie Huntington, Demand Media

Share on Google Plus

About Unknown