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 all this COVID19 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.
Due to COVID19, we are not sure how long this quarantine is going to last for. So, as long as we are in self-isolation, preparation should be the main focus of getting our plans together once we are free again to go into the world. Here are five reasons why you should take this opportunity to plan for a start-up business today.
Skills & Passion
Ask yourself what your skills are and if there’s a passion for what you can do then create a foundation from there. You also want to be sure whatever idea you decide to create as your small business that there’s a need, demand or can be a problem solver for others to benefit from. Creating a mapped plan to help yourself utilize your skillset into 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.
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 and your customers.
Understanding Your Customers
You have to know and understand the customers you want to reach. Your products or services will not be created for everyone but you do want to learn the lifestyle of your target market, their age, 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. 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 costs money to start a business and 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.
You also have to consider how much you will need to spend on items to start a business such as purchasing business cards, supplies or inventory for your products, business licenses, marketing supplies, packages, and so forth.
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 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.
There are so many details and information you will have to consider when creating your business and that’s why it’s important to start now while having the downtime to do so. You want to 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 still 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.
Wishing you the best of luck, positive energy, and overwhelming good health to all!