Here are the 5 most important questions to answer when setting up a business:
1. What Business Structure Is Right For You?
You have several basic options including sole proprietorship, partnership, corporation, S corporation, and limited liability company (LLC). Make a list of the pros and cons of each structure, based on your short and long-term business goals.
For example, if you’re starting a business as a solo web designer, you can get away with sole proprietorship for the time being. But if you know you’ll be hiring employees on day one, a corporation or LLC is probably a better choice.
2. Do You Know How To Create A Business Plan?
With so much to think about when launching a business, it’s easy to get ahead of yourself and overlook key details. A business plan is one of these. It may not sound like something you absolutely need, but a business plan will go a long way in keeping you on track in the early days of your company. Not to mention the fact that it also provides guidance down the road.
Remember, your business plan doesn’t have to be overly complex. It can be simple and to the point as long as it addresses key details such as company structure, competitors, and a marketing plan.
3. How Do You Plan On Funding Your New Business?
This is where many entrepreneurs come up short. They’re excited about starting a company but don’t have the funding in place to do so. Additionally, they don’t know where to look for funding. You can start by contacting a loan company to learn more about the products that are available to you. You can also review your personal savings, apply for a credit card, or talk to a loan officer at a local credit union.
It is imperative to have a clear understanding of how much money you need to set up and launch your business. This goes along with creating a detailed business plan. If you don’t think about this upfront, it could come back to haunt you down the road.
4. Will You Work From Home Or In A Traditional Office Space?
Setting up a business means knowing where you’ll work. In today’s day and age, working at home is more common than ever before. However, it may not be the best fit for you and the company you’re hoping to build. There are pros and cons of both work arrangements, so carefully consider each option before making a final choice. And remember, you can always change your mind in the future. For instance, if you start out working from home and find that you need more space, you can expand at that point.
5. Where Can You Turn For Help?
There’s more to setting up a business than what you see on the surface. You may realize that you need outside help, so knowing where to turn is a big deal. This allows you to get the guidance required without wasting any time.
Consult with a tax professional, financial advisor, and business attorney if necessary. Talk to people you know who have started successful businesses in the past. You may not need help now, but this could change in the future. And if it does, it’s nice to know exactly who to call.
Summary On Setting Up Businesses
It doesn’t matter if you’re setting up a part-time side hustle or going all in, make sure you address the questions above to the best of your ability. Doing so will give you confidence that you’re moving in the right direction. If you have any questions on your mind — no matter what they may be — don’t hesitate to answer them.
And if you don’t know the answer, consult with someone who can help. It’s better than making a mistake that will cost you in the long run. Can you think of any other questions to answer when setting up a business? Share your thoughts and experiences setting up a new business on social media and make sure to share this article link!
