Starting a business and building it right from the ground up in the United States is exciting and challenging. With a business of your own, you are your own boss and set your own rules, also you will be solely responsible for your success and failures. You get to decide how successful you want your business to be and how you want it to function. Being a small business owner puts a lot of pressure and weight on someone’s shoulder. Here’s a guide on everything you need to know to start a small business in the U.S.
Are you ready to start up your own business in the United States?
While the idea of owning your own business and working for yourself might seem a good idea, do you have what it takes to start a business? To determine if you can start and maintain your own business successfully, you must know whether you have what it takes to start a business.
1. Time
A new business – no matter how small, will require a lot of your time and attention.
You will require good time management skills and must know how to prioritize all your business tasks – from working with vendors to meeting customers, and personal tasks.
2. Money
You will need adequate funding and capital to invest in and get your business off the ground. The amount of money you will require will depend on factors like the type of business, size of business, industry, and American state in which you decide to start your business.
3. Patience
It could take you up to a year to build your business fundamentals and then a couple of years of hard work to reach profitability. You must have patience, along with drive and ambition, when starting a small business in the United States.
The 9 Steps to Start a Small Business in the United States
Step 1: Conduct market research
Market research is a must to find out if there are opportunities to turn your business idea into a reality. Does anyone else supply the same service/product in the area you plan to open your business?
Understand the area or locality you will be setting up your business. Gain a competitive advantage by researching your potential clients and competitors in the area. The location you set up your business will impact your taxes, revenue, and legal requirements.
Step 2: Create a business plan
Your business plan will be the foundation of your business and the roadmap to success. The business plan must describe your business in detail – its objectives and how you plan on achieving its goals. It lays out the financial, operational, and marketing roadmap of your business.
This critical document will also help your investors gain trust and invest in your venture.
Step 3: Choose a business structure.
Common business structures for small businesses include sole proprietorship for complete control of your business and partnership if you plan on going into business with some more people. However, you could also consider forming a limited liability company (LLC). If you decide to do this, then this incfile review will be very helpful. Business owners choose to form LLC’s as it separates and therefore protects their personal property from that of the business. If you need some advice on how to structure your business then you can always visit yourcompanyformations.co.uk for some help.
Step 4: Choose a business name and register your business.
Choosing a name for your business can be fun, but keep in mind that it must be unique and not used by someone else.
Make your small business legal by registering your business name with both the state and local governments. If you conduct business using your legal name and yourself, you might not have to register your business anywhere. The advantage of registering your business is that you get tax and legal benefits and personal liability protection as a registered business owner.
Step 5: Get federal and state IDs.
The federal and state IDs are like a social security number. You will require a Federal ID for hiring employees, opening a bank account, or applying for business permits and licenses. Some states require that you also have a tax ID.
Step 6: Apply for business licenses and permits
Ensure your business is legally compliant by applying for the necessary state licenses and permits required. The type of business licenses and permits you require, and their fees, will depend on the industry, and the state and location of your business, as well as your business activities. Research on your county, state, and city regulations – you can get all the details on your state’s website.
Step 8: Open a business bank account
Open a checking account specially designed for small businesses to help you handle and keep track of your business’s finances. But for that, you might need to choose an appropriate bank., which will pay attention to all your needs. To do that, you might need to follow these steps. Firstly, you need to conduct a survey regarding different financial institutions, which can allow you effortless business banking (one example of such an institution could be of FLCBAnk). Secondly, you will need to compare the different features and benefits provided by them. And lastly, based on your business needs, you can finalize your decision.
Remember, if you have your business’s registration done up and the necessary paperwork in order, this process is relatively easy. A business bank account offers you several perks that a personal bank account won’t give you. You will require a social security number (for a sole proprietorship business or an employer identification number, business formation documents, ownership agreement, and business license to open a business account.
Step 9: Look into insurance for small businesses
Every business faces various types of risks. The right insurance can protect you and your business from certain risks.
Some common business insurances include general liability insurance, professional liability insurance, business owner’s policy, and workers’ compensation insurance. Visit bizinsure.com for more information on the best insurance for your business.
Conclusion
Owning a business in the United States is the American Dream for many, but not everyone succeeds. Owning a business is not about waking up one morning and deciding to open a shop impulsively. If you have the time, money, and patience to start and maintain a business and follow the steps outlined here, your business venture has more chances of success.
