Your Own Business: The First Steps

What an exciting feeling you must be having atopen a business bank account and possibly for
this time. You have finally made the choice toother things.I wish to remind you that what I
"chuck it all" and go into business for yourself. Youoffer are general guidelines and information to help
dream of the freedom from your unreasonableget you started. It is always a good idea to
boss and the wonderful feeling of writing yourdiscuss your options with an accountant or lawyer
own paycheck. It's a lifelong journey that has toto determine what is best for you and your
start at the first step - the very beginning.It isindividual circumstances.5) Obtaining a Business
my goal to take everything all those books sayAddressThis is a step that you can skip if you
and boil it down to a real action plan that is asimply plan to use your home address or an
simple as it can be. Basically making it like a recipe.existing business location as your address. But in
You really don't need all that filler; you just needmost cases, you'll start working out of your
to know how to get started. A bunch of fluff isn'thome and probably wish to protect your privacy
going to help; in fact it slows you down. Insteadand create an aura of having a larger business by
of reading, you should be doing!This section will begetting a new business address.This process is as
those most difficult first steps of just gettingsimple as going to the post office or a private
started. Effectively launching your business andmail box center (PMB) such as The UPS Store. I
then growing it for success are their own uniquesuggest a PMB over the post office because you
steps in the future. For now, I'll have to assumecan usually use a street address and list your box
you have an idea already and have researched itnumber as a "suite" to help create a more
enough to know that it is a good idea and has apositive image versus having your address be a
bunch of customers clamoring for your productP.O. Box number.6) Your Business Phone
or service. Please be sure you have a goodNumbersLike the business address, you can skip
quality product and/or superior service. You arethis step if you plan on using an existing phone
not trying to make a quick buck; you want tonumber. But you should consider adding a second
have a business that lasts.I also have to assumephone number to your home or office to be used
that you already have some sort of supportjust for your new business. You can even get
network in place, trusted friends, professionalwhat is called an "overlay" and put a new phone
advisors like accountants and/or lawyers, and anumber on top of your existing phone. It will go
maybe a mentor with excellent opinions. If youto the same phone as you have now, and in
don't have them, you can pick them up along themost cases you can assign a different ring tone
way. But you'll need them all at some point.Youso you know it is for the business.A toll-free
probably want to know what qualifies me fornumber is also an important item to have, but
writing about this. Academically, I have an MBA inyou don't have to have it right out of the gate.
Entrepreneurship and Marketing. Professionally, IBut studies show that customers are more likely
have been a consultant for many entrepreneurs, Ito contact you if you have a toll-free number.
worked at a home business franchise companyThey are not that expensive to set up and the
for several years, and I have a few successfulcharges are based on usage, so if you use it a lot
entrepreneurial ventures of my own. I evenyou should be getting more than enough business
helped my own family launch a very successfulto cover the expense.Remember that you phone
online business selling premium pashmina andvoice is important. Talk with a smile - the
cashmere products. I'm not a super richcustomer can hear that smile. Be sure you have a
entrepreneur, but I'm successful and happy. Mypleasant and professional sounding message for
key expertise is online ecommerce, but theyour voice mail as well. And call back your
following ideas are relevant to starting any typecustomers who leave messages as fast as you
of business.How to Establish Your BusinessThiscan. Your competition probably isn't taking care of
first part is really what most people don't knowthem fast, so you should.7) Business Banking
how to do. It's the fundamental process ofAccount FormationHaving a separate business
actually setting up the business. All the good ideasbanking account is advised since it will help you
in the world have to start at the beginning. It's notkeep your financial records straight. It will save
the fun part, but it has to be done.It may seemyou a lot of time during tax season to keep your
elementary to you, but why haven't you done itbusiness and personal spending separate. I
yet?So, let's start from the start.1) Giving Yoursuggest using a larger bank, such as Bank of
Business a NameYour business' name is important.America or Wells Fargo, which serves the
It is your customers' first impression and yourbusiness community. They will offer a wider range
public identity. You probably want to choose aof services and possibly be a good source of
name that is professional, but also may hold somebusiness loans to help fund your growth.You may
meaning to you and your potential customers. Mywant to call several banks in your area to
personal and professional opinion is to not get toocompare their small business service options and
elaborate with your name. Make it simple andthe associated fees. Once you decide on the right
direct so you don't have to waste a lot of timebank for your needs, make sure you know what
branding or explaining to your customer just whatpaperwork to take when you open the account.
it is you do or sell.For example, for my family'sIn most cases they will require at least your
business selling pashmina products, we decided tonotarized D.B.A certificate.8) Logos, Business
go with The Pashmina Store. There is no questionCards, Letterhead and SuchSome people may tell
what the business is. Simple and direct...and theyou to invest lots of money upfront to develop a
URL was available (which is very important).Mostgreat logo and then put it on expensive
people have a desire to name their business afterletterhead. These people have never started a
themselves, using something like their familybusiness on a budget. While you do want to
name, their first name, or their initials. This is aappear professional, you can do just fine with
perfectly acceptable; as long as you get the ideayour own computer and printer while you wait to
across about what it is you are selling. Forgrow big enough to afford such materials.Most
example, if you are selling raincoats and yourlikely your word processing program or other
name is Smith, you may call your business Smith'ssuch program already has a letterhead template.
Raincoats or even Raincoats by Smith.Take theThat is fine to use for now. Choose a nice font
time you need to select on a business name thatfor your new "logo" and use some color for it, if
you're happy with, says what you do, and has ayou wish. Do purchase some nice paper to put it
good URL for a website. You should run youron. Then simply print out as needed.On your
name choices by your friends and family to gaugeletterhead, make sure you get all of your
their reaction and to get their thoughts.2) Registerimportant information across in a professional
Your URLI know, you just decided on a name andway. In general, you'll want to include your
have nothing close to a legal business yet. But Ibusiness name, mailing address, phone number,
suggest snapping up the best available URL (orfax number and email address.The same goes for
web addresses) as soon as you can. In this daybusiness cards and envelopes. You can buy nice
and age, your website and the URL will be a largeenvelopes and business card stock and use your
part of you business identity. It will also be theexisting program templates to create professional
source of your email addresses, so getting amaterials as needed.Having a designed logo or
good URL matters. We were lucky enough to getcompany motto on your letterhead is a personal
for the pashmina and cashmere business, I hopechoice. Make sure it looks good and reflects the
you are as fortunate for your venture.It is bestbusiness. Also make sure it looks good when it is
to investigate available URLs even as you decidemade very big or very small since it will be used
on a company name. Try to get the URL of yourin various formats.The Next StepsOnce you finish
exact business name, or as close as possible. IStep 8, you're in basic business shape. It is difficult
suggest getting a ".com" rather than ".net" orto tell you what to do next since there are so
other since that is what most people know.Youmany types of business and different ways to go
can research names and register at websitesabout it.In general, you'll need to start letting
such as and There is a small fee, but it is worth itpeople know about your business and getting
if you are serious about your business. These twocustomers. This may mean developing a website
services even will help you inexpensively set upthat sells products or promotes your services. It
and host a website and email service.3) Yourcan be as simple as handing out business cards to
Business' Legal OrganizationNext, you will have toeveryone you meet. Or maybe it is "pounding the
determine what legal structure is best for yourpavement" and meeting people to tell them what
new business. Early in a business' life, a soleyou are doing.But there are a few things to keep
proprietorship is most common. However, it isin mind that relate to any business. The Nike
beneficial to know the different types of legalslogan has it right when they proclaim "Just Do It."
business structures before you decide for certain.Nobody is coming to you, so you have to reach
You'll need to know all about them as you grow,out to them. And it takes time and effort. Yes,
in any event.You'll most likely want to discuss theyou do have to "work" and "sell" no matter what
options with your accountant and/or attorney asthose advertisements may promise for their
well. To get you started, here are the three mostwonderful business opportunity.Here's the "secret"
common forms of business.1. Proprietorship. Asto success: You will have to work harder than
mentioned earlier, this is the most popularyour competition, treat your customers better
structure when starting a new small business. It isthan your competition, offer a better product and
also the easiest to start. In most states andor service than your competition, just plain be
cities, all it typically requires is a D.B.A. ("doingbetter than the rest. Yes, that is the secret!My
business as") and a tax ID number, which wouldfirst job out of college was as an executive
likely be your Social Security number.Arecruiter, a headhunter. I was successful at this
proprietorship provides you the maximum amountjob. In fact, I was one of the tops in the nation. It
of control over your business...but it also leaveswasn't because I was naturally better than
you the most potential liability. In short, you areanyone else, it was because I worked harder and
personally accountable for your business and all ofI worked consistently. Have a plan for the day,
its debts and legal issues.2. Partnership. This formthe week, the month, the year...and do it
of business is common if your business requiresconsistently. Get into a routine and stick to it.
you to take on a business partner for expertYou'll get sidetracked along the way, of course,
knowledge or financial needs. A partnership is abut keeping your efforts consistent will pay off.
legal definition of your business relationship andYou'll make you own "luck."Since you are your
defines which party is responsible for what aspectown boss, you do have a little luxury to make a
of the business venture.For example, you may beschedule that fits your lifestyle. If you want to
the engineering type who can make the product.start at 10:00 AM, or play golf for lunch, or work
Another person may be the talkative type wholate at night, that is fine. But stick to the schedule
can sell sand in the desert. Yet another personand make it your routine. This will help you get
may be the main financial backer. Whatever yourover the initial feelings of being scared and
circumstances, a partnership allows you to defineoverwhelmed and start getting you comfortable
each person's part in the business and put it downwith your new professional life and on your way
on paper in a legal manner.3. Corporation. This isto success.Along the way, you'll start to discover
the most official and potentially complicated legalwhat your strengths and weaknesses are. You
form of business. This is also the most expensivedon't have to be an expert at anything really; you
type of business entity, but it does providejust have to be average to above-average at a
everyone involved the least amount of liability.It islot of things as an entrepreneur. If there are
very common to start as a proprietorship orglaring weaknesses in you business skills, you
partnership and then change to a corporationsimply have to work at them. You can read a
after the business is established and growing.4)book, take a class, whatever...but you'll naturally
Business RegistrationAgain, most likely you willget better each and every day just by doing
start as a sole proprietorship. The process is veryyour business.Finally, do not get so frustrated in
simple and inexpensive. But the process can varythe beginning that you quit before you even get
a bit between states and even cities andstarted. Depending on what you start with and
counties.The goal here is to get your businesswhat (or who) you already know it is going to
name registered as a D.B.A, or "doing business as".take some time. Even minimal success is probably
You will need this in most areas to open agoing to take several months and maybe a year
business checking account. The fees are typicallyor more. Make sure you are mentally and
minimal, but vary on your location. Your Countyfinancially ready for at least a year.If you're not
Registrar is most likely to be the office you willready now, don't worry. You now know the
need to contact to ask about what the process issteps and what to expect to even get started. It
to get your D.B.A. The methods will vary byis better to take you time and be well-prepared
location and in some rare instances you may notthan to rush off and make a mistake that you will
even have to register. Just be sure to ask aboutregret for years to come.Launching and growing
all of the steps to make sure you'reyour business are the essential main steps 2 and
covered.After you have made some calls or used3. But those are whole other beasts that are best
the Internet to find out the steps in your area,discussed at another time. Until then, I wish you
you will most likely need to go fill out paperworkthe best of luck and hope that your new business
at the government office that handles theis an incredible success.Blair Rhodes is an
registration. The good news is that the paperworkentrepreneur himself and has helped several
is generally light and the wait is not too long. Theypeople launch their own successful business. After
or you will be responsible for checking to makeearning an MBA at the University of Texas at
sure the DBA name is not already taken, and inAustin, Blair worked as a headhunter, in the movie
many cases you will be able to check on thebusiness, at several successful Internet startups,
Internet before you even go.After the paperworkat a franchise marketing company and as an
and name check, you will have to pay a fee,importer. He currently focuses on his own
which is generally small. Once it is all done, be sureventures, including The Pashmina Store and is
they give you a notarized copy of yourdeveloping several other ecommerce businesses.
registration as you will need it at the bank to