How to Start my Own Company
It may always have been a dream. A a matter of fact, it's a dream many people have, to work for themselves and cut the strings of boss. Perhaps you've had a great idea milling about in your brain since childhood, or you just discovered the latest idea for a newfangled device that will make life easier for millions of people. Maybe it's time to take that idea and set action behind it by starting your own company.
The first step to starting your own company is to brainstorm. What is your great idea for a company? What will you be selling and how will it help people? Are you making an old item perform better? Why? Why will people want to buy it? Sit down with pen and paper and start asking and answering these and other questions.
Next, decide if your business idea requires an entirely new company or if you could buy an existing franchise or company from someone. For instance, you have come up with a terrific recipe for pizza, perhaps an ingredient no one has ever tried before. You're not reinventing the wheel, then so you could simply buy an old pizza company and simply add the new ingredient with what you already have. If on the other hand, you're making a virtual something-or-other and there's nothing of its kind to be found on this plant, well you're going to have to start metaphorically from scratch.
Create a Business Plan
Now it's time to come up with a business plan. Take your notes from brainstorming and any thoughts and opinions that others have suggested and get writing. Here's only a little of what you need to include in your business plan:
- Decide how you can market it
- Determine if you have competition and how you can be better
- Decide how many employees you'll need
- Include the type of coverage (insurance) you'll need
Financial Nitty Gritty
Now it's time to face the financial facts. You will need some money to start a business and chances are pretty high that you are going to need to borrow some. If you dont' already have a loan application, get one from the bank you intended to borrow from. If you need to purchase any equipment or a building, include this in your financial notes.
Determine if you want a sole propietorship, a partnership or a corporation. Consider a friend or family member who may want to share in the business with you. Is it possible that they can loan you money, or that they will want to help run the business with you? Family members can be a great support when taking a leap like starting your own business. No matter if you partner with a friend or family member or even someone who wants to act as a silent partner,or even go it alone, make sure you have an agreement prepared legally in writing.
Next Steps
If you haven't already, figure out a name for your company. It should reflect the style and attitude of the company as well as the good or service you plan to provide. Also, it should be one that is not already taken. Once that's settled and you have approval from your bank to get a loan, get your Federal Employer Identification Number (FEIN). You've probably seen these on tax forms and W2s when doing your annual taxes. All companies who intend to pay their employees need a FEIN.
Next, you'll need to obtain licensing for the type of business you will have. If you plan to be a cosmetologist, accountant, physician, contractor, appraiser, funeral director, etc check to see that you have all the licensing needed in your state. Then, obtain a sales tax permit so that you can sell products, if applicable, and your business license.
Since you've been approved for a loan (presumably), open a bank account to do your business through. And now, start making money.
