The first thing you need to do when you have decided to start a business is to determine the structure of the business. Once you have decided on the structure of your business, you should arrange for financing of the business. When it comes to financing the first thing you need to determine the amount of money needed for the business and how you intend to use that money. You must also determine how you are going to repay the money you borrow. There are many sources of funding the business. You can always use your own funds. You can also depend on borrowed money from your friends, relatives and other investors. You can also borrow from commercial lenders, individual investors, government programs and venture capitalists.
You should comply with all Federal, State and local laws on opening a business. You must get the required permits from the state and local agencies. The best person to turn to for advice is an experienced local business lawyer. You should select an lawyer who is aware of the local laws. For example if you are starting your business in Hartford, CT you should hire an lawyer from Hartford, CT and not an lawyer from New York City.
Based on your city or county laws, you may require a license for certain types of business. Generally businesses that deal with food such as coffee shops and restaurants generally require a license from the local authorities. Also the zoning laws can have an affect on the nature of business you can start in a particular locality. Generally you cannot engage in manufacturing activity in a residential area.
You must obtain an Employer identification number from the Internal Revenue Service. This will required for tax purposes.
Starting a business is a complex and stressful process. An experienced lawyer can make the process less stressful by guiding you through the complex maze of the various rules and regulations.
If you start a new business, there is no guarantee that you will make a profit whereas an existing business would have already proved its track record. You will require a work force combined with an effective sales team.
A newly established business will find it difficult to raise finances whereas on the other hand banks and financial institutions are more liberal when releasing funds to an existing business. The reason is that it is easier to assess the risks involved in an existing business than those in a new business.
Owning your own business will let you be your own boss. It will enable you to control your financial and professional destiny. You get tremendous satisfaction. You are not longer working under a work culture. You can establish the work culture. It offers you flexibility in your working hours. You are the boss and you can tailor your work schedule to meet your personal needs. There are also some tax benefits which you can derive by owning a business. But be warned that having your own business does not and cannot be a guarantee of your financial success. Owning a business also brings with it many responsibilities. You have to handle the pressures of the business. It may not be as easy as you may have thought it to be. There is a lot of red tape and bureaucratic hassles in owning and running a business. Add to that the taxes and employee benefits, not to mention the employee unions.