You have an incredible idea, you possess the necessary knowledge and skills, and you are brimming full of passion. It is time to take that leap and just go for it. With the right tools and mindset, your venture can be fulfilling, successful, and lucrative. Here are some tips for getting started.
Create a Solid Plan
A recent QuickBooks survey found that 70% of successful business owners recommend starting with a business plan. Your business plan is like a roadmap that will help you stay on track and guide you to your destination. Ask yourself the following questions as you begin. Who will help you reach your goals? Who are your target customers? Who are you wanting to serve? What do you plan on offering? What makes you stand out amongst your competitors? What niche are you trying to fill? And finally, why do you want to begin an independent venture? Why would people choose you over someone else? Why do you care? As you answer those basic questions, your business plan will begin to form.
Find Startup Capital or Financing
As with any venture, you will need the funds to proceed. You have many options for startup funding. These include venture capital, personal business loans, crowdfunding, business lines of credit, and even personal savings. One fabulous option for funding your venture is an SBA microloan. These loans are guaranteed by the Small Business Administration, which mitigates risk and provides quick access to the capital you need. According to Franchise Gator, an SBA loan comes with a lower interest rate and better terms than a traditional loan.
Choose Your Business Structure and Get Your Federal Tax ID
Another critical first step is to choose your business structure. Learn the differences between a Sole Proprietorship, an LLC, an S Corporation, and a C Corporation. This will help you decide the best option for you and what you hope to accomplish. Just remember, sole proprietorship offers you no protection for your personal assets; a lawsuit filed against this business structure could take everything you have from you. For that reason, it is a good idea to at least register as an LLC. You will also need to obtain a federal tax ID. This allows you to function as a business, including paying taxes and opening bank accounts.
When starting an independent venture, there is a lot to do. It can feel overwhelming, but if you take it one step at a time, you will be there before you know it. Luckily, there are many people and agencies there to help you throughout the entire process. Just believe in yourself and make it happen!
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