Five Tips for Small Business Start Ups
Approximately 543,000 new businesses are created every month in the United States. While that number is impressive, it is also estimated that seven out of ten only survive the first two years. As an entrepreneur ready to start a new business, it is imperative that you understand why these businesses fail and plan accordingly. Here are five ideas that can help with small business start ups.
Ask the Right Questions before Starting
The Small Business Administration offers numerous resources to prospective business owners. One is a list of questions you should ask before starting a business. These questions help budding businesses make sure their idea is sound and on the right track, and has a viable chance in the market. Among the questions you should ask are these:
- Why are you starting your business?
- What products/services will your business offer?
- What makes your business idea and products/services different from competitors in the market?
- How will your business’s structure be set up?
- Will you require a business loan?
Create a Business Plan
Business plans are essential for all startups, regardless of whether you intend to obtain financing. Your business plan spells out all critical details, projects finances, and can tell you if your business will be profitable and what you need to succeed year-by-year.
Test the Consumer Market
To ensure you have a product consumers are interested in, you might want to line up clients or customers interested in your business before officially starting it.
Obtain All Required Permits, Licenses, and Structure
Starting a business requires a plethora of paperwork. You may need a license to operate, and you may also need to have certain permits. Before applying for your business license, you should register your business name and determine what legal structure you wish to use (i.e. LLC, Inc, etc.). The structure you select will determine how your taxes are calculated, the filings you must make, , and other paperwork you might be required to issue throughout the year.
Work with a Professional
A successful business is one that does not start alone. An entrepreneur should leverage the expertise of a legal and financial professional to make sure that a new business gets a solid start by following all state, county, and city ordinances.
An experienced business attorney can review the structure options for your business, draft contracts, help organize necessary paperwork, and also assist with such as contract negotiations and hiring/terminating employees.
Starting a business can be complicated, but with assistance from an attorney at Udall Shumway, PLC, you can ensure that your new business has all the opportunity for success. Contact the commercial team at Udall Shumway, PLC now to schedule a consultation.
This blog should be used for informational purposes only. It does not create an attorney-client relationship with any reader and should not be construed as legal advice. If you need legal advice regarding Small Business Start Ups, or any other litigation matter, please feel free to contact us at 480.461.5300, log on to udallshumway.com, or contact an attorney in your area. Udall Shumway PLC is located in Mesa, Arizona and is a full service law firm. We assist Individuals, families, businesses, schools and municipalities in Mesa and the Phoenix/East Valley.