We’ve all read those phoney “How to Start your own company” where it says, “Take Risk”, “Be Professional”, “Be that…” Do you realize those words meant nothing. They aren’t wrong, it’s just too vague. But this time, it will be different. Let’s jump in!
1. What is your plan?
Starting a business isn’t easy as those “fake gurus” describes it on YouTube. Starting a business is hard and trust me, I went through all that pain. First you need to know what exactly you are doing! Let’s say you’re selling clothes. What does your clothing stand out from all of your competitors. Do you have money to advertise? Do you have an LLC or a EIN. What about debt? See? Starting your business is hard and extremely time consuming, that’s why you need a plan! Plan the future of your company. Like Abraham Lincoln said: “The best way to predict the future is to create it,” I don’t mean just simple planning, I mean clean and detailed. Take your time and think.
2. Invest Time and Money
Congrats you passed the first challenge. You are brave enough to continue as most people would quit because of how complicated creating your own business is. Now, it’s time to invest all of your effort. If you already have a job, or you are in school, I don’t recommend quitting, but the problem is, you can’t invest all of your time in your project. If you are in school, you have the summer break to invest time and money (don’t worry to ask your parents for help). If you are currently working, you only have the weekends to work on your company but, you have the money to invest in your project. In both scenarios, open up a savings account and calculate the amount of money you’re willing to risk. Either way, don’t try to excel in work or at school and at the same time work on your business. It won’t happen. It’s one or the other. Your choice!
3. Don’t Work Alone!
Never, never work alone if you want to make your business big. Tell everyone you know, family, friends, online friends, etc… Tell them if they want to work with you or invest some money. Open up about your project, let’s say your selling clothing, ask them for their opinion and if they would buy or not. Ask your friend if he wants to design with you… Never expect to succeed by working as lone wolf.
4. Analyze and Advertise
Now this is where things gets complicated. This will be extremely time consuming. Let’s say your still going on with your “state of the art” clothing. First make sure to analyze your competitors. What are their strategies. How do they market. Read books on how Nike or Adidas became the biggest brand. Read about business or about marketing strategies. My biggest advice for you is to read Steve Jobs biography by Walter Isaacson. This rundown might take up to half a year, so you better be ready. Now Advertising. Advertising always comes with a cost but there’s some tricks to bypass paying ads. Social Media. Share it, tell your friends to share it, advertise it on Reddit, Facebook, Instagram so on. Tell them if you repost this you will get this free. That’s called RepostBait. It’s not ideal, but it’s the best way if you have no money. If you do have cash, then advertise them the same way, on Social Media. Don’t advertise it on random sites, people won’t see it. Also don’t forget to check if your state or country offers money to help small business, this will help immensely.
5. Register your business
Now find a name for your business and create a website. There are simple ways to create a website, like using Wix or Weebly. The downside is you have to pay for an SEO.
Single person company
Now the legal stuffs. You have to register your company so it can be a distinct legal entity. How and where you need to register depends on your business structure and business location. For most small businesses, registering your business is as simple as registering your business name with state and local governments. If you conduct the business all by yourself, you don’t need to register at all, you can just use your legal name. But be warned as you can’t collect certain protections and benefits if you don’t register. Also there is an option of registering with the Federal Agencies and State Agencies (U.S). Check your government on how to register. If you want to trademark your business, brand or product name, file with the United States Patent and Trademark office once you’ve formed your business. Check with your government as it’s might be different from the U.S.
LLC or Corporation/Partnership
Register with state agencies
If your business is an LLC, corporation, partnership, or nonprofit corporation, you’ll probably need to register with any state where you conduct business activities. To have a LLC you’ll probably need to have all of this:
1. Your business has a physical presence in the state
2. You often have in-person meetings with clients in the state
3. A significant portion of your company’s revenue comes from the state
3. Any of your employees work in the state
Some states allow you to register online, and some states make you file paper documents in person or through the mail.
Most states require you to register with the Secretary of State’s office, a Business Bureau, or a Business Agency.
If your business involves more then one state, file for foreign qualification.
The information you’ll need typically includes:
-Business name
-Business location
-Ownership, management structure, or directors
-Registered agent information
-Number and value of shares (if you’re a corporation)
I told you this was hard.
6. Open a business bank account
You have to pay taxes. You’ll use your employer identification number (EIN) for important steps to start and grow your business. It’s like a social security number for your business. Some – but not all – states require you to get a tax ID as well. A small business checking account can help you handle legal, tax, and day-to-day issues.
7. Apply for licenses and permits
Most small businesses need a combination of licenses and permits from both federal and state agencies. The requirements – and fees – vary based on your business activities, location, and government rules.
Check out this link for more info: https://www.sba.gov/business-guide/launch-your-business/apply-licenses-permits.
Congratulations!
Congrats, you made it! You officially now know how to build your own business. Hard right? Don’t worry, take your time in what you do, don’t rush it. Thanks for reading!
Some sources are from sba.gov.
