What’s Your Passion? If you are thinking about starting a business, it should be something you enjoy. Since a lot of time and energy goes into running a business, it is smart to look at your hobby or professional experience as a potential business idea. For example, if you are good at sewing, consider a tailoring shop; or an accountant could look at bookkeeping or tax service. Now, imagine what your life would be like if you spent the majority of your day actually doing what you love. Do you have what it takes to be an entrepreneur? To improve your chances, here are 10 Extremely Important Tips for a Successful Business Launch.
Tip 1: The Name Game
Now that you’ve narrowed it down to ONE ‘business idea,’ you’ve got to figure out a name. A major challenge in starting a business is the process of searching and choosing the right business name. Choosing the right business name can mean success while a poorly thought out name could doom your business from the start. Three smart business name tips:
- A smart business name must be unforgettable. It is imperative that potential clients be able to remember your business name. I’m sure most people have heard of Nike, Wal-Mart, Target, Home Depot and McDonalds. Like these household names, your name should be easy to pronounce and memorable.
- A smart business name must describe what your business does. When you create your business name, potential clients should be able to understand what products or services your company offers. For example in ‘ Browder Consulting Group,’ the word “Consulting’ is a clue that I provide specialized advice; or as in Lynn’s Styles & Cuts,’ the words ‘Styles & Cuts is a clue that this is a beauty salon.
- A smart business name should be as short and sweet as possible. As you advertise your business, it is important that your name display well on your marketing material, such as business cards, ad campaigns, domain name and email. As potential clients search for you on the internet, you want it to be an easy spelled and searchable name.
Tip 2: On a Mission
A mission statement is an important tool that tells others who you are, what you do, how you do it and why you are superior than your competition.
- It identifies and clarifies the business’ vision, purpose and direction.
- It provides the path and focus needed for making and implementing decisions.
- It helps define to your future employees what they are doing, why they are doing it and where they are going.
Example: At Browder Consulting Group, our mission is simple… to help women achieve success through entrepreneurship.
Tip 3: Make it Legal
Be diligent in choosing the best Legal Form for your business. This is one of the first important decisions that you will have to make. This decision can have long-term implications, so here are a few things to consider when deciding which business structure is best for your business:
- Scope of business you plan to attain
- Size of your business
- Business’s vulnerability to lawsuits
- Tax implications based on the different ownership structures
- Level of control do you wish to have
- Expected profit/loss of the business
Tip 4: Surround yourself with a Progressive Team
Who do you need to know or collaborate with as a part of your external team? Having the right people on your team will allow you to focus on your business and help you to avoid costly mistakes. For example, you might need the following:
- Certified Public Accountant: best form of ownership, establish bookkeeping, record keeping procedures and tax planning, etc.
- Business Attorney: reviewing lease contracts, determining the right business structure, etc.
- Computer Information Technician: set up systems, repair issues, etc.
- Human Resource Management Consultant: assess your current HR processes for compliance, navigate through delicate labor issues, set up hiring processes, compensation and benefits and create employee manuals, job description and Standard Operation Procedural manuals.
Tip 5: Research Licenses & Permits Needed for Your Industry
As you can see, there are many steps involved in starting a business. With the daunting task of figuring it all out, it’s easy to overlook the important legal requirements associated with permits, licenses and registrations. Here’s a list that your business might need:
- State Requirements: Business licensing requirements may vary from state to state.
- Business Licenses: Depending on your state, county and city, a business license may be required for tax purposes and to conduct other basic business functions.
- Occupations and Professions: Depending on your profession, state licenses may be required for occupations such as, appraisers, accountants, barbers, building contractors, cosmetologists, funeral directors, physicians, private investigators, private security guards and real estate agents.
- Tax Registration: Some states carry a state income tax. If you establish your business in a state that does, you’ll have to register and obtain an employer identification number. If your business engages in retail sales, you will need to obtain a sales tax license.
- Trade Name Registration: If you plan to run your business in your local community only, registering with the state may be adequate.
- Employer Registrations: Are you planning to hire employees? If so, you’ll probably be required to make unemployment insurance contributions. ‘
Want to read more? We will share the rest of this article including 5 more tips next week.