Starting a new business is an exciting prospect but not one that you should rush into. For your business to be compliant, you have to follow established legal procedures. There are also some decisions that you should give careful consideration to for your business to be a success.
The United States Small Business Administration describes some of the steps you need to take as you start your new business.
1. Conduct market research
A new business starts with an idea, but conducting market research gives you an opportunity to determine whether your idea has a chance for success. It tells you more about your prospective customer base as well as other businesses you may be in competition with.
2. Choose a business structure
This is one of the first decisions you have to make because it has a bearing on most of the rest of the process. There are many different types of business structures available, and they vary in terms of how difficult and costly they are to set up, as well as how much protection they provide you. Examples of business structures include the following:
- General partnership
- Limited liability company
- Sole proprietorship
3. Write a business plan
Once you have decided on a structure for your business, you can create a business plan that describes how you will start, run and expand on your business. A business plan provides a roadmap for you to follow, but you will also show it to others as you look for partners or funding.
These are not the only steps involved in starting a new business, but they are some of the most important preliminary steps. Where you go from here depends partly on the business structure that you choose.