If you’re serious about starting a business, this is the perfect time to start planning to make it happen. I know it’s crazy, right. You would rather wait until this pandemic mess is over so you can get back into the world and take real action to get the ball rolling.
Unfortunately, with everything going on, it’s best to create a plan while being self-isolated because this will help you to focus on mastering your ideas to come to life and understanding the potential you have once an effective plan is put into place for your future business.
We’re not sure how long this pandemic is going to last for, but for now the biggest key to develop is preparation. Yes, preparing a plan to create your new business will be something that will help you discover and gain clarity on what will or will not work. You need to have the basics down in order to reach your potential target audience. Here are five reasons why you should take this opportunity to plan for a start-up business today.
Skills & Passion
What are you passionate about ? Ask yourself what skills do you have that you can create to building a business. Whatever you decide, be sure that there’s a need, demand or the business can help solve a problem to your target audience or target clientele. Creating a map plan for your skill set to use for your future business will be your advantage for real-time success. To advance your skills, use accessible resources such as online courses, YouTube, Udemy, Google and so forth to get started for your business needs.
Register & Set Up Your Business
Start learning how to register and set up your business. This includes a legal structure that you have options to choose from such as sole proprietorship, partnership, limited liability company (LLC), corporation and non-profit corporation. Click here to learn more details on what each of these business structures means. You will also need to think about choosing a business name, a logo design (if it applies to the business you’re creating), a website including purchasing a domain name, a payment processor for you to accept and handle transactions between you, your customers or clienteles.
Understanding Your Customers
You have to know and understand your customer’s needs and wants. This is absolutely crucial to reach your target audience for your business. Your products or services will not be created for everyone but you do want to learn the lifestyle of your target market. You want to know their age, their income, their status, their hobbies, where they reside and how you will get their attention to gain their business. This part is crucial to have in your business plan because you want to have real authentic customers that can relate to what you are offering them. Without knowing who they are and what their needs are, you will fail before getting the chance to sell and offer anything from your business.
Your business plan will help you figure out how much money you’ll need to start your business. Don’t believe the hype when people say you don’t need money to start a business, it’s simply not true. It cost money to start a business because you have to spend the money somewhere or somehow. That includes purchasing business cards, supplies or inventory for your products, business licenses, marketing supplies, packages, and so forth.
Funding your business is one of the most important steps to being a business owner. How you choose to fund your business could affect how you structure and run your business. The options are endless from what you choose. You can fund your business yourself, get venture capital from investors, use crowdfunding, get a business loan, and so forth. The options are endless.
Do the necessary research and find out how much you will need to build the business you want in the industry you seek to enter in. Knowledge is always power especially when it comes to the financial aspect.
Federal and State Tax IDs
You will have to get an employer identification number (EIN) to start and grow your business. It’s like having a social security number but exclusively for your business. Getting an EIN is completely free and should be done after you register your business. Apply for an EIN with the IRS where it will help guide you through questions for your name, social security number, address, and your “Doing Business As” (DBA) name. Your federal tax ID will become available immediately upon verification.
The need for a state ID number ties directly to whether your business must pay state taxes. Sometimes, you can use state tax ID numbers for other functions such as protection against identity theft for sole proprietors. Tax obligations differ at the state and local levels, so you will need to check with your state’s websites. To know if you will need a state ID, research and understand your state’s laws regarding income taxes and employment taxes, the two most common forms of state taxes for small businesses. The process to get a state tax ID number is similar to getting a federal tax ID number, but it will vary by state. You will have to check with your state government for specific steps.
Use this time to figure out all the kinks to your startup business and most importantly while trying to figure all this information, will starting a business be something you want to pursue. It’s better to learn the truth now rather than later so don’t waste any time waiting before making things happen.