Deciding to start your own business is a significant decision. There are countless things to consider. Do I have the time to operate my own business? Do I have the capital to start a business? Just plain and simply, can I successfully operate a business? The answers to those questions depend on you. How hard are you willing to work to develop and operate a successful business because starting and operating a business requires dedication and perseverance. It is a 26-hour job—minimum. Yes, a 26-hour job because you will have to figure out how to fit 2 extra hours into a 24 hour day. But in the end, it is doable and can be extremely rewarding.
The first step in starting your own business is to consider the following:
1) What type of business will you operate;
2) Whether there is a need for your business;
3) Competition in the market and how your business will be better;
4) Who your target market is, and
5) How will you reach your target market?
6) Will I operate this business on a part-time or full-time basis?
Doing this will assist you with determining what is necessary to actually develop and start your business. The next step is to draft a business plan. The business plan will be derived from the 6 key considerations that I mentioned above. Keep in mind that when starting a business, that your business plan should be flexible as you may need to make changes as you go through the process of establishing the business. Even after the business is fully operational, changes may be necessary as one cannot contemplate every operational issue. So, a business owner must be both proactive and reactive and willing to accept change.
The business plan will take into consideration the 6 key considerations above but will go a step further and will include the following:
1) Type of business entity, e.g. Corporation, S-Corporation, LLC, Sole
2) Name of entity
3) Products and/or Services to be offered
4) Customers, and Target Market
6) State where the company will be organized
7) Location of Business, physical or virtual existence
9) Costs to start a business, including, but not limited to:
a) Organizational, Licensing, and Registration expenses
b) Labor start-up costs
c) Production Costs
d) Marketing Costs
e) Advertising, website, etc.
f) Office Expenses and supplies
g) Professional Expenses, e.g. Legal and Insurance expenses
10) Customers, and Target Market
So, as you can see, there is a lot that goes into establishing a new business. However, with careful planning and organization, it can be done successfully.
AA Group offers business and legal services such as business organization/formation, strategic planning, and continued legal and operational support as your business develops. For newly organized companies, AA Group can serve as your external in-house counsel to assist you with your day to day legal and business operational needs. For more information, please contact us at 845-470-2027.