Here are 10 tips that the editors of Cover have gathered at recent business meetings for starting a new business:
- Outline your company’s mission statement, goals and define your corporate culture.
- Outline your business plan. It is critical to have a detailed business plan for the first 60 days, the first six months and the first 12 months.
- Create a three year budget, because your potential equity investors and debt lenders will demand it.
- Find an accountant geared to small business to help you select the best business structure for your operation; C corporation, S corporation, LLC or another structure.
- Set up a legal entity and register the company name with the state.
- File for state and federal tax ID numbers.
- Find an attorney geared to small business issues.
- Do a company name search to avoid conflicts with existing firms.
- Get legal advice on shifting personal assets to protect them in case the business does not thrive as planned.
- Carefully plan and implement employees/partners compensation plans. If the plans are too generous up front and you need to cut back on them later, it can be a disaster.