Top Tips to Setting Up Your Own Business
By Wilhelmine Johnston
October 05, 2022
Compared to 2019, 2021 showed a 70% increase in new business registrations. Although starting your own business is an exciting time, it can also have its challenges and you may struggle to know where to start.
Do you research
Before you get started, it is essential to do market research. This will give you a guide as to whether there’s an opportunity to turn your idea into a success. Look at existing businesses who are already operating in the same field, and gather information about potential customers and businesses already operating in your area. Use this information to make a business plan that can help get you off to the best start.
Calculate set-up cost
Starting a new business from scratch can be expensive, you will need to have the funds in place to put your plan in action. If you don’t have the capital in your savings, you’ll have to raise the cash or borrow the money. Set up costs will differ, depending on the type of business, according to the U.S. Small Business Administration, for most small new start-up businesses you will need approximately $3,000.
Work on branding
Once you have the finances in place, you’ll need to decide on a name. Don’t pick a name that is too similar to a competitor’s; it should be consistent with your brand and easy to remember. Before registration, check that the name is unique and that no one else in your state has formed a company with, or reserved, that name. You can do this by searching Business name availability, domain name search, and federal trademark records. Trademarked names are registered with the U.S. Patent and Trademark Office and are protected nationally.
You’ll use your employer identification to open a bank account and pay your taxes. It’s like a social security number for your business, in some states, you may also be required to get a tax ID. To open a small business checking account, requirements will vary based on the bank, your type of organization, and the state where you formed your business. Some banks require an opening deposit, while others allow you to open an account with $0.
5 bonus tips:
- Have a detailed plan in place.
- Focus on something you have a passion for.
- Understand the market and your target customers.
- Prioritize customer support and deliver an experience your customers won’t forget and will have them coming back to you.
- Recognize your strengths and weaknesses and don’t be afraid to ask for help.
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