Amidst a slew of ideas and tasks to keep track of, here's to-do list to successfully launch your new venture.
Coming up with innovative ideas, developing a unique brand, and making well-crafted pitches to investors are some of the most exciting parts of starting a business. These are all crucial tasks that need to be done well, but successful business owners know there are other, admittedly less attractive, parts of the job that are crucial to starting off on the right foot.
"What you do today can improve all your tomorrows." -Ralph Marston
Here are a few to-do’s that you don’t want to skip when getting your business off the ground -- and how to get them done as painlessly as possible.
Secure Funding One straightforward funding option is to finance the endeavor yourself. If you choose to self-finance, you’ll use all your own assets to get the business off the ground. You may be able to use savings that you have in a personal account or raise the necessary funds by selling property or valuable objects, working extra to save up, or taking out a loan.
When paying for your business out-of-pocket, you’re completely financially responsible if the business doesn’t succeed, so make sure you don’t spend more than you can afford. The good news is, by self-financing your venture you are privy to all the profits -- you own it all.
Other funding options include seeking out venture capital, a case in which one or more “angel” investors front funds to help in the start-up phase of a business. An angel investor typically looks for a return of around 25 to 60 percent. Also look into the pros and cons of crowdfunding (or crowdsourcing), an internet-based approach to raising funds in increments from interested small- to medium-scale private investors.
Or you may find yourself selling services, which doesn't rely heavily on funding. But you will need to market yourself really well, or, preferably, find the established channels where you can tap into their clients. Good options for these can be Right Side Up, Fiverr, Workrise, Upwork, etc.
No matter what approach you take, funding is a part of a business’s foundation that will affect its health from the get-go and well into the future.
Form an LLC
Forming a limited liability company (LLC) is an excellent way to establish your business with a solid but flexible structure. Experts often recommend this organization type for small business owners as it protects your personal assets and offers flexibility in how you allocate profits and pay taxes.
This step of business creation can be pretty easy: You will need to file the paperwork required in your state, appoint a registered agent of the LLC (you may appoint yourself), and create an operating agreement if you share ownership with anyone else. Filing your business as an LLC can also provide funding opportunities down the line if you bring additional members on board who contribute to the business.
Set Up Payroll
Finding a payroll service that will address your business’s needs can help you save time and meet the tax obligations that the IRS outlines. No matter how large or small your business is to begin with, there are services that offer a range of helpful features and can do the heavy lifting for you. Some things to look for are time-tracking, same-day direct deposit, automated payroll calculations, and assistance with filing taxes and avoiding tax penalties. Selecting a top-quality payroll service is a step toward the smoothest possible start to your business.
Make an Accounting Plan
Taking the time to develop careful accounting practices may not be a delightful prospect to a hands-on, action-oriented business owner, but it should be a priority when launching a business. Thankfully, you can hire professionals or purchase comprehensive services to keep track of your business accounts and put together financial reports. Once you have a well-organized accounting system, you'll be able to access key information about your business’ starting costs and performance.
The nuts and bolts of starting a business are complex, and there’s a great deal of work that has to happen behind the scenes before you officially launch. Having a plan to get everything done correctly -- even the more mundane tasks -- is important not only for starting your business but also for sustaining it.
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Written by Camron Ward, an entrepreneur, owner of bizwealthbuilder.com, and MBA student. bizwealthbuilder.com provides business budgeting and funding information. It helps business owners streamline their financial management through easy-to-implement processes and platforms so that they can stick to the business of running their business!
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