When starting a new business, there are some basic things you must do before starting the actual business. Both the Small Business Administration and ShareKitchen believe that a written business plan should be your first priority. The business plan is your roadmap and includes things like a description of your business, an analysis of the market and how your business fits. The plan helps you identify what you are selling, how you will sell and market it and why you will be successful. It includes financial plans and budgets so that you know whether you have the financial resources to effectuate your plan.
In the process of writing the business plan, you will realize that you may need help in a number of areas such as legal, financial and human resources. This is where ShareKitchen, the Coachella Valley Women’s Center and SCORE can be valuable resources.
Have you picked a legal structure for your business? Will you be a B, C or S corporation; a Limited Liability Corporation, Sole Proprietorship or Partnership? Each have tax ramifications as well as reporting and licensing requirements at the federal, state and local levels. Choose wisely and with expert advice.
You will need a tax identification number from the IRS and the state tax agency. You will also need to get insurance for the business as well as for your employees. Even without healthcare, you still need worker’s comp, unemployment and disability.
If it takes an extra year or two to achieve your business plan, where would the money come from to sustain both yourself and the business?
What is your businesses name and where will it be located? Can you get the right web address? Are others using your name?
Doing a thorough job in the planning and set-up phase will help you greatly when the inevitable bumps in the road occur.
