Larry
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1. Research
To start a business, you need to understand both the core service and business finances.
Many people start businesses related to previous career experience, but don't understand how the business is funded. When researching a prospective business, answer these questions:
How much will materials, utilities, insurance, employees, and taxes cost?
Where should this business be located?
What kinds of licenses and inspections will you need?
What profit margin and rate of sales do I have to maintain to be profitable?
Many future business owners are surprised to learn that material goods are often a very small percentage of total costs, ranging from 20-40% for most industries.
Remember that if you are quiting your regular job you'll also need some money to support yourself until the business gets off the ground.
2. Create a business plan
A business plan will show investors how your business will turn a profit. It should address the following questions:
What need does this business serve?
How will it be financed?
What kind of organization is it?
What are your objectives for the first months and years of operation?
What conditions will you need to fulfill to be successful long-term?
What are the risks that this business will encounter?
A good business plan will be critical in the next two steps.
3. Incorporate
There are several types of corporations, with varying state and federal rules. You will need to talk to a lawyer and an accountant about which type of corporation will best suit your particular needs for both liability protection and taxes.
Start this process early: some companies will only lease equipment on payment to businesses that have been around at least a year, regardless of how much they earn.
4. Get financing
You probably won't have the cash on hand to get your business started. Approval of small business loans are based on your personal finances, your credit rating, and your business plan. Government loans are available for veterans, but these have a lot more restrictions tied to them.
 Posted 5446 day ago
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