What Do I Need to Start My own Small Business?

A Home Business Article Contributed by Barbara Parker

Small Business Ideas

First you need to come up with an idea, product, or service for your small business. A lot of people that want to own a small business, often never come up with an idea. For the new entrepreneur, there are a lot of options open. You can buy a franchise or a business that's already established, or you can ask other people for ideas for a small business. This is the easy part, once you know what it is you want to do, then the work really starts.

Small Business Plan

Writing a business plan is the next step. It is very important because this is how you will be able to evaluate your ideas, and other people will use this as well for the same purpose. When you are out ther looking for money the first thing potential investors and loan officers are going want to see is your business plan. If you already have the money, then you will still want a business plan as it can help you with strategies and capital projections. A key part of any plan is the marketing plan.

This shows your plans to promote and advertise your small business. The goal setting step of the business plan will help you to analyze the success of your small business in the years to come and show you exactly how much money you need for the small business to break even.

Financing Your Small Business

With your business you are ready to go find some money. Most small businesses have three of gaining funds: friends & family, investors, or bank loans. All of these have pros and cons. Investors and even friends & family usually want in on the business. Bank loans add more to the bills with loan payments and can eat up profits.

Getting started

Now you have the plan, the money, and the desire. You're ready, aren't you? Nope. You still need to take into consideration the legalities. First you need to decide on a legal structure: Sole Proprietorship, Partnership, or Corporation. What you did to come up with your funding will have a great deal to do with which option you choose. Now you need file with the state to incorporate and get a federal Identification number.

Opening the Doors

Alright, time to make some money. This means spending money. Where are you going to run your business? Will your home work or do you need a building or office space.? Do you need to hire employees? Do you need an accountant? What taxes do you have to pay and collect? Now that your business is open, now get to look forward to managing a small business.

Local regulations

The city business license office is the first place you need to check for the local regulations that concern all new businesses. when you get there you can find out about zoning requirements, business licenses (almost all businesses will need one of these), and other information on starting up a business in your area.