7 steps to start your new business [Free business plan template]

You’ve done your research, you’ve found your niche and now you’re ready to make your entrepreneurial dreams come true.

• But where do you start?
• What are the first steps to take?

Starting a new business is as exciting as it is scary. There are so many unknowns that many aspiring entrepreneurs let fear, indecision and perfection hold them back.
7 steps to getting your new business off the ground [Free business plan template].

Don’t let your entrepreneurial dreams gather dust; use these simple steps to get your new business off the ground.

1. Get Educated

The most important step in getting started is to acquire basic business knowledge. It’s best to invest in a niche-specific course, but if your budget is tight, start by reading a book or two.

One of the first business books I remember reading was The Chic Entrepreneur by Elizabeth Gordon. It taught me the basics of running and marketing a home business.

There are tons of books on business and marketing; just do a simple search on Amazon and pick one or two to start with. If you have the opportunity to invest in a course, that’s great! Here’s a great list of business courses to get you started.

2. Write a business plan

I know, you’re probably thinking, “Why do I have to write a business plan, I’m not going to apply for a business loan?”.

Business plans don’t have to be complicated, long or drawn out. Think of your business plan as a simple roadmap that will guide you to business success.

Don’t know where to start?

No problem. Use our FREE simplified business plan template to get started.
Free business plan template

3. Business name

If your company name is not your own name, you will need to apply for a DBA (Doing Business As). You will also need to search the United States Patent and Trademark Office to make sure that no one else is using the name you want to use.

To apply for your DBA, look in your county clerk’s office and fill out the appropriate paperwork. If you plan to use an LLC or corporation-type business structure, you will not need a DBA, as your business name is registered under these structures.

4. Choose your business structure

Using your business plan as a guide, determine the business structure you will use. You can choose between a sole proprietorship, partnership, limited liability company (LLC), limited liability partnership or corporation. Each structure has its advantages and disadvantages, and a meeting with a lawyer or accountant can help you determine which structure best suits your liability and tax needs.

5. Apply for the necessary permits, licenses and forms

Before you start your home-based business, you will need to check with your city and county authorities to see if you need any specific permits or licenses. Each state, city and county has different rules, but this article can give you a general idea of the different types of licenses you will need.

The most common licence is a sales tax licence. To determine whether you are required to collect sales tax on your products or services, contact the State Comptroller’s office in your area. If you are required to collect sales tax, they will be able to direct you to the appropriate forms to fill out.

6. Get your financial fundamentals in order

Keeping your business finances separate from your personal finances is a simple way to keep your accounting organised and up to date. And depending on the business structure you choose, it may be a necessity.

To open a business bank account, most banks require an employee identification number (EIN). You can apply for an EIN on the IRS website. Once you have your EIN, look for banks that do not charge high service fees for opening a business account.

You will also need to consider billing, accounting, and how to accept payments. If you accept credit cards, you will need to use a third-party payment processor, such as PayPal, Stripe or Square. If you use an e-commerce platform such as Etsy, eBay or Shopify, you can use their payment processing systems.

7. Create your website

To be competitive as a home-based business owner, you need a website. An online presence allows you to attract more customers, showcase your work, list your services and testimonials, and give you a more professional image.

Don’t worry, creating a website is easy and affordable. This article contains step-by-step instructions that will get you up and running in no time, and for only $2.95 a month!