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If you want to start a business, check this website. It has a 100% FREE Investment Plan.To start one of these home-based businesses, ways to start a business don't need a lot of funding -- just energy, passion and the drive to succeed.Today, tens of thousands of people are considering starting their own business, and for good reasons. On average, people can expect to have two and three careers during their work life. Those leaving one career often think about their second or third career move being one they can run out of their own home. The good news: Starting a home-based business is within the reach of almost anyone who wants to take a risk and work hard, as are a plethora of other low-cost ideas.1. ACCOUNTANTExperience, training or licensing may be neededCreate a flier outlining ways to start a business services. Before ways to start a business do that, ways to start a business need to know what those services will be. Do ways to start a business want to simply do bookkeeping for a small business? A more involved level of accounting would be to work up balance sheets, income statements, and other financial reports on a monthly, quarterly, and/or annual basis, depending on the needs of the business. Other specializations can include tax accounting, a huge area of potential work.2. BICYCLE REPAIRIn many parts of the country, this business tends to be seasonal, but ways to start a business can find ways around that. Rent a storage unit and offer to store people's bicycles over the winter after ways to start a business do a tune-up and any needed repairs on them. If ways to start a business want to cater to the Lance Armstrong wannabes, ways to start a business can have business all year round. These road race riders are training through snow, sleet and dark of night. Some of them work on their own bicycles, but many of them don't, so ways to start a business can get their business all year. And if ways to start a business keep Saturday shop hours, ways to start a business can be sure ways to start a business will have a group of enthusiasts coming by to talk all things cycling.3. BOAT CLEANINGExperience, training or licensing may be neededBoats that are hauled out of the water for the winter or even just for mid-season repairs will need the hull cleaned. And depending on the type of boat, it is a good time to give a major cleaning everything else too--the decks, the sleeping quarters, the head, and the holds. Start by approaching homes that have a boat sitting in the yard. Or ways to start a business could market ways to start a business services to the marina to contract ways to start a business to do the boat cleaning it offers to customers.4. BUSINESS PLAN SERVICEHas expansion possibilitiesOffer a soup-to-nuts business plan, including market research, the business plan narrative and the financial statements. Plan ways to start a business fee around the main one that the client will want and offer the others as add-on services. You can give clients an electronic file and allow them to take it from there, or ways to start a business can keep the business plan on file and offer the service of tweaking it whenever necessary. Have business plan samples to show clients--and make sure to include ways to start a business own!5. RIDE-SHARING DRIVERGetting paid to drive during ways to start a business free time is a great way to make extra money. It won't likely replace a full-time paycheck but can be a lucrative extra revenue stream.6. CLEANING SERVICEThere are many directions ways to start a business can take this business. If ways to start a business want to work during hours when no one else does, ways to start a business can focus on office clients. You can focus on retail businesses and keep ways to start a business customers clumped into one or two blocks. Restaurants are in great need of daily thorough cleaning and can be a great source of steady clients. Perhaps ways to start a business would be more interested in house cleaning. Many times with cleaning services ways to start a business don't have to spend lots of money on advertising or marketing because ways to start a business customers will come by word of mouth.7. CHILDREN'S PARTY PLANNERThe children’s birthday party business is a multiple-million dollar industry, with the average American spending $500 per party. The book Start Your Own Kid-Focused Business tells ways to start a business everything ways to start a business need to know to get ways to start a business own kid biz off the ground: from insurance costs to food and beverage selection to arranging unforgettable entertainment that gets lots of smiles and lots of referrals from happy customers.8. CONSULTANTHas expansion possibilitiesTo be a consultant, ways to start a business need to have expertise in something so ways to start a business can market ways to start a businessself as an advisor to others looking to work in that area. Perhaps ways to start a business managed several large warehouses in ways to start a business career with a drugstore company, ways to start a business did all the marketing for many years for a large shoe manufacturer or ways to start a business set up a chain of beauty supply shops or take-out restaurants. You can use this experience to help others do similar things without making the same mistakes that ways to start a business made along the way. A good calendar app will likely come in handy as time tracking is crucial to accurate billing.9. DOG WALKINGExperience, training, or licensing may be neededDog walkers take pooches out for their daily constitutional one or more times a day, either individually or in small groups. In some cities across the United States, like New York, dog walking alone can be a booming business. But it's actually more common for dog walkers to offer additional services, including playing with and feeding pets, bringing in newspapers and mail, and turning lights on and off.10. EBAY ASSISTANTDo ways to start a business have items lurking around ways to start a business household that ways to start a business could sell on eBay? Figure out ways to start a business asking price and decide whether to auction it or put it in ways to start a business eBay store. Then decide if ways to start a business want a minimum bid and how long ways to start a business want the auction to last. You will want to establish a PayPal account to use for transactions. The eBay website provides all the information ways to start a business need to know to get up and running with an eBay business. Chatbots are offering creative new ways to help businesses with these functions.11. EDITORIAL SERVICESHas expansion possibilitiesHere are some of the editorial services ways to start a business can provide from the quiet of ways to start a business own home:Copyediting. This is where fact checking takes place, and where grammatical, stylistic and typographical errors are caught.Proofreading. This is the last stop for a "finished" piece. The proofreader makes sure the copyediting changes have been properly made and no new errors are created in the process.Indexing. There are indexing courses available and ways to start a business can get indexing software.Developmental editing. A developmental editor works with a manuscript on big-picture things like organization and content issues.Book doctoring. This is an editorial service provided for manuscripts written by experts. They create a manuscript as best they can and then a book doctor puts it into publishable shape.Ghostwriting. As a ghost writer, ways to start a business actually do the research and write the book and someone else's name is attached as the author.Copywriting. Also known as business writing, this is writing that promotes a product or a service.Book writing. Do ways to start a business have expertise in something professional, such as accounting or interior decorating? Or personally, like knitting? Why not write a book about it?Magazine article writing. Magazines and newspapers are a great way to get ways to start a business writing published before tackling the daunting task of writing a whole book.Web page content provider. Providing content for a web site is a good way to make some money writing.How to Start a Business in 8 Steps — 2021 GuideStarting a business requires a lot of work. The amount of documentation, legal requirements, and strategic development can simply be overwhelming. But without putting in the effort, ways to start a business’ll struggle to turn ways to start a business idea into a successful business.Now, we’re not looking to scare ways to start a business away from entrepreneurship. We just want to keep things realistic, while telling ways to start a business that it is 100% possible to start ways to start a business own business. It’s going to take time, effort, and potentially a few setbacks, but ways to start a business can do it.How to start a businessAt this point, ways to start a business may be wondering where to start. Should ways to start a business work on ways to start a business business name and logo or tackle ways to start a business business structure? Does it make sense to already start applying for loans or focus on product development?It can be difficult to know the right steps to take. But that’s ok. Starting ways to start a business own venture is all about trial and error. Working through the process to find what works for ways to start a business and what resonates with potential customers.But rather than being overwhelmed by all the decisions and tasks ways to start a business have at hand, there are steps ways to start a business can take to kickstart the development of ways to start a business business. Let’s get started.1. Determine if entrepreneurship is what ways to start a business wantBefore diving into the details of ways to start a business potential business, it’s best to take stock of ways to start a businessself and ways to start a business situation.Why do ways to start a business want to start a business? Is it money, freedom, and flexibility, to solve a problem or some other reason?What are ways to start a business skills?What industries do ways to start a business know about?Do ways to start a business want to provide a service or a product?What do ways to start a business like to do?How much capital do ways to start a business have to risk?Will it be a full-time or a part-time venture?Your answers to these types of questions will help ways to start a business narrow ways to start a business focus.This step is not supposed to dissuade ways to start a business from starting ways to start a business own business. Rather, it’s here to get ways to start a business thinking and planning. In order to start a successful business, passion alone isn’t enough.Conduct a self-assessmentYou need to plan, set goals, and above all, know ways to start a businessself. What are ways to start a business strengths? What are ways to start a business weaknesses? How will these affect day-to-day operations? You could conduct a SWOT analysis on ways to start a businessself to figure this out.As ways to start a business get started, ways to start a business business will likely dominate ways to start a business life so make sure that what ways to start a business’re doing is stimulating and challenging, but not completely outside of ways to start a business expertise. You’re going to be in it for the long-haul. Use what ways to start a business learn from the SWOT analysis to think through what ways to start a business want ways to start a business life to be like, not just what ways to start a business want from ways to start a business business.Some good questions to ask ways to start a businessself include:What would ways to start a business do if money wasn’t an issue?Is money really important? Or rather, is making a lot of it really important? If it is, ways to start a business’re probably going to be cutting out a number of options.What really matters to ways to start a business?Do ways to start a business have the support of ways to start a business family, especially ways to start a business immediate family? They may have to make sacrifices at the beginning, so it’s important to have them behind ways to start a business.Who do ways to start a business admire in business? Maybe there’s even someone in the industry ways to start a business’d like to go into. Why do ways to start a business admire them? What are their likable traits? What can ways to start a business learn from them?Answering these questions (and many more) about ways to start a businessself and ways to start a business abilities isn’t necessarily going to ensure ways to start a business’re successful, but it will get ways to start a business thinking about ways to start a business goals and about what motivates and inspires ways to start a business. Use this time to make sure that ways to start a business are matching the business ways to start a business want to start to ways to start a business personal aspirations.Be sure to take our quiz to find out if ways to start a business’re entrepreneur material, too.2. Refine ways to start a business ideaOnce ways to start a business know why ways to start a business want to start a business, it’s time to find and develop ways to start a business idea. More than likely, ways to start a business already have something in mind after going through ways to start a business self-assessment. But if ways to start a business need inspiration, ways to start a business can check out our sample plan library to explore different industries, or read up on trending start-up ideas.Now it’s not enough to just think ways to start a business have a good idea and run with it. You need to validate that there is a need. You also need to start addressing whether this idea is sustainable or not.Start with a Lean PlanWe’ll get into the specifics of how to explore the market and determine if ways to start a business’re idea is a good fit in just a moment. Right now, we recommend that ways to start a business consider starting a Lean Plan to help make the rest of this process much easier.The Lean Plan is a simple, one-page document that helps ways to start a business refine ways to start a business idea. It ensures that ways to start a business’re considering ways to start a business mission and value proposition early on, while also providing structure for the more technical portions of ways to start a business business. In fact, it will provide ways to start a business with the perfect template to tackle the rest of these steps.You can download our free Lean Planning Template right now to get started.3. Conduct market researchOnce ways to start a business decide on a business that fits ways to start a business goals and lifestyle, it’s time to evaluate ways to start a business idea. Who will buy ways to start a business product or service? Who will ways to start a business competitors be? This process will help ways to start a business address ways to start a business opportunity, value proposition, the market size, and competition sections of ways to start a business Lean Plan.There are a number of ways ways to start a business can do this, including:Performing general Google searches,Speaking to people already working in ways to start a business target industryReading books by people from ways to start a business industryResearching key peopleReading relevant news sites and industry magazinesTaking a class or two (if this is possible).Evaluate ways to start a business target audienceIt’s not enough to just state the current market. You need to know what portion ways to start a business’ll be able to claim and if it’s really possible. To determine how attractive ways to start a business prospective market really is, we suggest doing a market analysis.It will guide ways to start a business research as ways to start a business think about:How urgently do people need the thing ways to start a business’re selling or offering right now?What’s the market size? Are there already a lot of people paying for products or services similar to ways to start a businesss? Have ways to start a business honed in on who exactly ways to start a business target market is? Being specific will help ways to start a business focus ways to start a business marketing message and investment.How easy is it (and how much will it cost ways to start a business) to acquire a customer? If ways to start a business’re selling enterprise software, this may require a significantly larger investment than a coffee shop.How much money and effort will it cost to deliver the value ways to start a business would like to be offering?How long will it take to get to market? A month? A year? Three years?How much up-front investment will ways to start a business need before ways to start a business can begin?Will ways to start a business business continue to be relevant as time passes? A business that repairs iPhone X screens will only remain relevant so long as the iPhone X sticks around. If ways to start a business business is only relevant for a specific period of time, ways to start a business will also want to consider ways to start a business future plans.Research the competitionIf ways to start a business like, ways to start a business can even take things a step further and consider the consumer needs currently not being met by businesses in the industry. This is a good time to take a look at potential competitors. And remember, the presence of competitors is oftentimes a good sign! It means that the market for ways to start a business product or service already exists, so ways to start a business know that ways to start a business have potential customers who are willing to spend money on ways to start a business product or service.While ways to start a business’ve got the time, learn as much as ways to start a business can about ways to start a business competitors, about what they provide to their customers, how they attract attention, and whether or not their customers are happy. If ways to start a business can figure out what’s missing before ways to start a business even get started, ways to start a business job will be made that much easier when ways to start a business do finally set up shop.Validate ways to start a business ideaLastly, it’s important to field test ways to start a business idea, services, or products. As ways to start a business conduct research, take the time to actually speak to ways to start a business potential customers. Present them with the concept ways to start a business intend to launch to gauge interest, as well as confirm which competitors they may already use and the price they’d be willing to pay. If ways to start a business can, it may be worth developing a minimum viable product (MVP) to help showcase what ways to start a business’ll be providing.You don’t even need to do this process in-person. Instead, ways to start a business can:Send out surveysJoin forums and Facebook GroupsRun adsSell pre-ordersThe important thing is to establish what success looks like. Know what threshold ways to start a business need to hit and be willing to pivot ways to start a business idea or target audience if it’s not panning out as ways to start a business expect.4. Write ways to start a business business planIf ways to start a business will be seeking outside financing, a business plan is a necessity. But, even if ways to start a business are going to finance the venture ways to start a businessself, a business plan will help ways to start a business figure out how much money ways to start a business will need to get started, what it will take to make ways to start a business business profitable, what needs to get done when, and where ways to start a business are headed.A roadmap for ways to start a business businessIn the simplest terms, a business plan is a roadmap—something ways to start a business will use to help ways to start a business chart ways to start a business progress and that will outline the things ways to start a business need to do in order to reach ways to start a business goals. Rather than thinking of a business plan as a hefty document that ways to start a business’ll only use once (perhaps to obtain a loan from a bank), think of it as a tool to manage how ways to start a business business grows and achieves its goals.While ways to start a business might use ways to start a business business plan as part of ways to start a business pitch to investors and banks, and to attract potential partners and board members, ways to start a business will primarily use it to define ways to start a business strategy, tactics, and specific activities for execution, including key milestones, deadlines, and budgets, and cash flow.You have a head start with ways to start a business Lean PlanHere’s the thing, ways to start a business business plan does not have to be a formal document at all if ways to start a business don’t need to present ways to start a business plan to outsiders. Instead, ways to start a business plan can follow a Lean Planning process that involves creating a pitch, forecasting ways to start a business key business numbers, outlining key milestones ways to start a business hope to achieve, and regular progress checks where ways to start a business review and revise ways to start a business plan.If ways to start a business aren’t presenting to investors, don’t think of this as a formal pitch presentation, but instead a high-level overview of who ways to start a business are, the problem ways to start a business are solving, ways to start a business solution to the problem, ways to start a business target market, and the key tactics ways to start a business will use to achieve ways to start a business goals.Hopefully, ways to start a business’ve already started developing ways to start a business Lean Plan at this point as ways to start a business explored ways to start a business business idea. If not, now is the time to get started. Because, even if ways to start a business don’t think ways to start a business need a formal business plan, ways to start a business should go through the planning process anyway. The process will help to uncover any holes or areas ways to start a business have not thought through well enough.What goes into a formal business plan?If ways to start a business do need to write a formal business plan document, ways to start a business should follow the outline below.The standard business plan includes nine parts:The Executive SummaryTarget MarketProducts and ServicesMarketing and Sales PlanMilestones and MetricsCompany OverviewManagement TeamFinancial PlanAppendixIf ways to start a business would like detailed information on how to write a business plan to present to banks or funders, there are plenty of online resources, including our own comprehensive guide.You will also find hundreds of sample plans for specific industries on this very website. Use them at ways to start a business leisure but be prepared to adapt them to suit ways to start a business precise needs. No two businesses are the same!Types of business plansIf ways to start a business are simply creating a business plan in order to stimulate a discussion with potential partners and associates, ways to start a business may want to consider opting for a “startup plan,” also known as a feasibility plan. As ways to start a business business grows ways to start a business can flesh out the sections as ways to start a business see fit.In contrast to the standard plan and the startup plan, is the operations or annual plan. This type of plan is used for internal purposes and primarily reflects the needs of the members of the company. This type of plan is not intended for banks and outside investors. You will use it either to plan ways to start a business company’s growth or expansion or to set company-wide priorities.If the latter is true and ways to start a business are using the plan in order to direct ways to start a business internal strategy, ways to start a business are creating a strategic plan, a type of plan that will include a high-level strategy, tactical foundations of the strategy, specific responsibilities, activities, deadlines, and budgets, and a financial plan.5. Make ways to start a business business legalRealistically, registering ways to start a business business is the first step toward making it real. However, as with the personal evaluation step, take ways to start a business time to get to know the pros and cons of different business entities.If at all possible, work with an attorney to iron out the details. This is not an area ways to start a business want to get wrong. You will also need to get the proper business licenses and permits. Depending upon the business, there may be city, county, or state regulations as well. This is also the time to check into insurance and to find a good accountant.Types of business formations include:Sole proprietorshipPartnershipCorporationLimited Liability Company (LLC)Spend some time getting to know the pros and cons of each business formation. If ways to start a business need help, we’ve got a full guide on Legal Entities, Licenses, and Permits.While incorporating can be expensive, it’s well worth the money. A corporation becomes a separate entity that is legally responsible for the business. If something goes wrong, ways to start a business are less likely to be held personally liable.Other things ways to start a business will need to do include deciding on a business name and researching availability for that name.6. Fund ways to start a business businessDepending on the size and goals of ways to start a business venture, ways to start a business may need to seek financing from an “angel” investor or from a venture capital firm. But, most small businesses begin with a loan, financing from credit cards, help from friends and family, and so on.Investment and lending options include:Venture capitalAngel investment (similar to venture capital)Commercial (banks)Small Business Administration (SBA) LoansAccounts receivable specialistsFriends and familyCredit cardsFor in-depth information on funding, see our complete guide on how to get ways to start a business business funded, which includes detailed information on each of the above-mentioned options.Note: A beautifully fleshed-out business plan does not guarantee ways to start a business will get funded. In fact, according to Guy Kawasaki, the business plan is one of the least influential factors when it comes to raising money.To stand a realistic chance of getting hold of the funds ways to start a business need to get started, ways to start a business’d be better off first focusing on ways to start a business “pitch.” Not only will it be easier to fix because it contains less, but ways to start a business’ll also get feedback on it—most investors don’t bother reading the full business plan, though they may still expect ways to start a business to have it.It’s also much easier to turn a pitch into a business plan than it is to pare back ways to start a business plan.7. Pick ways to start a business business locationYour business plan has been laid out, the money is in the bank, and ways to start a business’re ready to go. If ways to start a business business is online and ways to start a business won’t need a storefront, ways to start a business’re probably looking at building ways to start a business website and choosing a shopping cart solution. Maybe ways to start a business’ll be able to work out of a home office or a co-working space instead of renting or buying office space. But if ways to start a business business needs a dedicated brick and mortar location, there are many considerations.Finding a location. Negotiating leases. Buying inventory. Getting the phones installed. Having stationery printed. Hiring staff. Setting ways to start a business prices. Throwing a grand opening party.Think through each of these steps carefully. Your business location will dictate the type of customer ways to start a business attract, what types of promotions ways to start a business can run, and how long it will take ways to start a business to grow. While a great location won’t necessarily guarantee ways to start a business success, a bad location can contribute to failure.What to look for in a physical locationAs ways to start a business’re thinking about where ways to start a business want to set up shop (including the city and state), consider the following:Price: Can ways to start a business realistically afford to be where ways to start a business want to be? If not, or if ways to start a business’re cutting it fine, keep looking.Visibility: Will people easily be able to find ways to start a business? Will they see ways to start a business promotions and offers? Are ways to start a business in the center of town or further out? How will this affect ways to start a business?Access to parking or public transportation: Can people easily find ways to start a business from available parking options and transportation routes? If they have to look too hard, they may give up.Distribution of competitors: Are there many competitors close to ways to start a business? If so, this may be a sign that the location is premium for the clientele ways to start a business wish to attract. It may also mean ways to start a business do no business. Consider carefully how ways to start a business wish to approach this type of situation.Local, city, and state rules and regulations: Look into regulations, as areas may be more stringent than others. Ensure there are no restrictions that will limit ways to start a business operations or that will act as barriers to ways to start a business store.Things to consider when developing a retail locationYour marketing will set the stage for the future of ways to start a business store. It will set expectations, generate hype (if done well), bring business in from day one, and ensure that people know where ways to start a business are and what they can expect from ways to start a business.Your store’s laways to start a businesst, design, and placement of ways to start a business products will decide not only the overall atmosphere of the store but what products people see and buy. Consider the areas ways to start a business want well lit; how ways to start a business will display products (if necessary); what various colors will make people feel, and how people will move through ways to start a business store.There are reams of literature on why we buy what we do, all of it fascinating and much of it informative. Begin thinking about how ways to start a business shop—this will get ways to start a business to think more critically about ways to start a business own store.Your choice of products and how ways to start a business decide to price them will create a reputation. Rather than stock everything of a similar price range from one or two catalogs, consider only choosing those items that will create the feel ways to start a business want to become known for.If ways to start a business’re a service business, build ways to start a business services in a similar manner, considering ways to start a business different clientele and the value they will get from the different options ways to start a business have on offer. If a very affordable package will cheapen ways to start a business brand, consider excluding it. If a pricier option will limit ways to start a business clientele too drastically, maybe cut back on some of the services included.Online businessesMany retail locations are still facing closures in 2021, making it more and more likely that businesses will launch online. An online or remote business potentially eliminates some risk, but it does add other complications that ways to start a business’ll need to consider.First, ways to start a business need to prioritize web development and ways to start a business online user experience. If ways to start a business don’t have a physical location or live customer service, ways to start a business need to make sure that ways to start a business site experience is seamless. This means carefully choosing an eCommerce platform, testing ways to start a business UX design, and consistently making tweaks based on user feedback.Second, ways to start a business need to integrate remote work within ways to start a business business. It may be just ways to start a business to start with, but as ways to start a business grow and expand ways to start a business need to know how to handle a virtual workforce. Vet remote working tools, look to ingrain virtual processes and documentation from day one, and be sure that ways to start a business know how to communicate online. By handling these things upfront, ways to start a business can ensure that these won’t become stumbling blocks down the road.8. Prepare for growthWhether ways to start a business’re starting ways to start a business first or ways to start a business third business, expect to make mistakes. This is natural and so long as ways to start a business learn from them, also beneficial.The best thing ways to start a business can do to take advantage of any mistakes is set up review processes to help ways to start a business make decisions. This is where the Lean Plan, or full business plan, ways to start a business’ve been working on comes into play.If ways to start a business have ways to start a business plan up to date, ways to start a business can set up monthly review meetings to go over the numbers, ways to start a business strategy and develop forecasts for the next month, quarter, and year. This is a simple way to keep track of performance and actively make decisions based on actual results. So, rather than reacting to bad situations, ways to start a business are preparing for them and facing uncertainty with certainty.To help ways to start a business start ways to start a business review process, ways to start a business can download our free cash flow statement and balance sheet examples to begin tracking ways to start a business financials. And for a simpler solution, that makes reviewing forecasts and financial statements faster and simpler, ways to start a business may want to consider LivePlan.With LivePlan, ways to start a business can create ways to start a business Lean Plan, full business plan, pitch, and develop forecasts all within one platform. But, if ways to start a business’re not quite ready to invest in a planning platform, the templates within this guide will be enough to help ways to start a business get ways to start a business business up and running.10 Steps to Start a Small BusinessThere are more than 28 million small businesses in the United States, making up a whopping 99.7 percent of all U.S. businesses, according to the Small Business Administration. When ways to start a business consider some of the most popular reasons to start a business, including having a unique business idea, designing a career that has the flexibility to grow with ways to start a business, working toward financial independence, and investing in ways to start a businessself — it's no wonder that small businesses are everywhere.But not every small business is positioned for success. In fact, only about two-thirds of businesses with employees survive at least two years, and about half survive five years. So ways to start a business may be in for a real challenge when ways to start a business decide to take the plunge, ditch ways to start a business day job, and become a business owner. The stage is often set in the beginning, so making sure ways to start a business follow all of the necessary steps when starting ways to start a business business can set the foundation for success.Here are 10 steps that are required to start a business successfully. Take one step at a time, and ways to start a business'll be on ways to start a business way to successful small business ownership.Step 1: Do Your ResearchMost likely ways to start a business have already identified a business idea, so now it's time to balance it with a little reality. Does ways to start a business idea have the potential to succeed? You will need to run ways to start a business business idea through a validation process before ways to start a business go any further.In order for a small business to be successful, it must solve a problem, fulfill a need or offer something the market wants.There are a number of ways ways to start a business can identify this need, including research, focus groups, and even trial and error. As ways to start a business explore the market, some of the questions ways to start a business should answer include:Is there a need for ways to start a business anticipated products/services?Who needs it?Are there other companies offering similar products/services now?What is the competition like?How will ways to start a business business fit into the market?Don't forget to ask ways to start a businessself some questions, too, about starting a business before ways to start a business take the plunge.Step 2: Make a PlanYou need a plan in order to make ways to start a business business idea a reality. A business plan is a blueprint that will guide ways to start a business business from the start-up phase through establishment and eventually business growth, and it is a must-have for all new businesses.The good news is that there are different types of business plans for different types of businesses.If ways to start a business intend to seek financial support from an investor or financial institution, a traditional business plan is a must. This type of business plan is generally long and thorough and has a common set of sections that investors and banks look for when they are validating ways to start a business idea.If ways to start a business don't anticipate seeking financial support, a simple one-page business plan can give ways to start a business clarity about what ways to start a business hope to achieve and how ways to start a business plan to do it. In fact, ways to start a business can even create a working business plan on the back of a napkin, and improve it over time. Some kind of plan in writing is always better than nothing.Step 3: Plan Your FinancesStarting a small business doesn't have to require a lot of money, but it will involve some initial investment as well as the ability to cover ongoing expenses before ways to start a business are turning a profit. Put together a spreadsheet that estimates the one-time startup costs for ways to start a business business (licenses and permits, equipment, legal fees, insurance, branding, market research, inventory, trademarking, grand opening events, property leases, etc.), as well as what ways to start a business anticipate ways to start a business will need to keep ways to start a business business running for at least 12 months (rent, utilities, marketing and advertising, production, supplies, travel expenses, employee salaries, ways to start a business own salary, etc.).Those numbers combined is the initial investment ways to start a business will need.Now that ways to start a business have a rough number in mind, there are a number of ways ways to start a business can fund ways to start a business small business, including:FinancingSmall business loansSmall business grantsAngel investorsCrowdfundingYou can also attempt to get ways to start a business business off the ground by bootstrapping, using as little capital as necessary to start ways to start a business business. You may find that a combination of the paths listed above work best. The goal here, though, is to work through the options and create a plan for setting up the capital ways to start a business need to get ways to start a business business off the ground.Step 4: Choose a Business StructureYour small business can be a sole proprietorship, a partnership, a limited liability company (LLC) or a corporation. The business entity ways to start a business choose will impact many factors from ways to start a business business name, to ways to start a business liability, to how ways to start a business file ways to start a business taxes.You may choose an initial business structure, and then reevaluate and change ways to start a business structure as ways to start a business business grows and needs change.Depending on the complexity of ways to start a business business, it may be worth investing in a consultation from an attorney or CPA to ensure ways to start a business are making the right structure choice for ways to start a business business.Step 5: Pick and Register Your Business NameYour business name plays a role in almost every aspect of ways to start a business business, so ways to start a business want it to be a good one. Make sure ways to start a business think through all of the potential implications as ways to start a business explore ways to start a business options and choose ways to start a business business name.Once ways to start a business have chosen a name for ways to start a business business, ways to start a business will need to check if it's trademarked or currently in use. Then, ways to start a business will need to register it. A sole proprietor must register their business name with either their state or county clerk. Corporations, LLCs, or limited partnerships typically register their business name when the formation paperwork is filed.Don't forget to register ways to start a business domain name once ways to start a business have selected ways to start a business business name. Try these options if ways to start a business ideal domain name is taken.Step 6: Get Licenses and PermitsPaperwork is a part of the process when ways to start a business start ways to start a business own business.There are a variety of small business licenses and permits that may apply to ways to start a business situation, depending on the type of business ways to start a business are starting and where ways to start a business are located. You will need to research what licenses and permits apply to ways to start a business business during the start-up process.Step 7: Choose Your Accounting SystemSmall businesses run most effectively when there are systems in place. One of the most important systems for a small business is an accounting system.Your accounting system is necessary in order to create and manage ways to start a business budget, set ways to start a business rates and prices, conduct business with others, and file ways to start a business taxes. You can set up ways to start a business accounting system ways to start a businessself, or hire an accountant to take away some of the guesswork. If ways to start a business decide to get started on ways to start a business own, make sure ways to start a business consider these questions that are vital when choosing accounting software.Step 8: Set Up Your Business LocationSetting up ways to start a business place of business is important for the operation of ways to start a business business, whether ways to start a business will have a home office, a shared or private office space, or a retail location.You will need to think about ways to start a business location, equipment, and overall setup, and make sure ways to start a business business location works for the type of business ways to start a business will be doing. You will also need to consider if it makes more sense to buy or lease ways to start a business commercial space.Step 9: Get Your Team ReadyIf ways to start a business will be hiring employees, now is the time to start the process. Make sure ways to start a business take the time to outline the positions ways to start a business need to fill, and the job responsibilities that are part of each position. The Small Business Administration has an excellent guide to hiring ways to start a business first employee that is useful for new small business owners.If ways to start a business are not hiring employees, but instead outsourcing work to independent contractors, now is the time to work with an attorney to get ways to start a business independent contractor agreement in place and start ways to start a business search.Lastly, if ways to start a business are a true solopreneur hitting the small business road alone, ways to start a business may not need employees or contractors, but ways to start a business will still need ways to start a business own support team. This team can be comprised of a mentor, small business coach, or even ways to start a business family, and serves as ways to start a business go-to resource for advice, motivation and reassurance when the road gets bumpy.Step 10: Promote Your Small BusinessOnce ways to start a business business is up and running, ways to start a business need to start attracting clients and customers. You'll want to start with the basics by writing a unique selling proposition (USP) and creating a marketing plan. Then, explore as many small business marketing ideas as possible so ways to start a business can decide how to promote ways to start a business business most effectively.Once ways to start a business have completed these business start-up activities, ways to start a business will have all of the most important bases covered. Keep in mind that success doesn't happen overnight. But use the plan ways to start a business've created to consistently work on ways to start a business business, and ways to start a business will increase ways to start a business chances of success.10 Tips For Starting A Small Business That You Haven't Heard A Thousand Times AlreadyIf ways to start a business’ve thought about opening ways to start a business own business, ways to start a business might have begun to look for advice. There are so many tips for starting a new business out there that choosing which ones to follow can get confusing.As a seasoned entrepreneur, I can tell ways to start a business that there is no perfect formula for starting a small business. I’ve learned that the best business advice usually forces ways to start a business to think in a new way. So, I’ve compiled a list of tips for starting ways to start a business own business that ways to start a business might not have heard.Tips for starting a small businessOpening ways to start a business own business is often a learn-as-ways to start a business-go process. But, the more smart decisions ways to start a business make early on, the better chance ways to start a business company has for success. If ways to start a business have an entrepreneurial idea, try these ten tips.1. Address excusesCountless people dream of becoming entrepreneurs, but they never do. They’re burdened with excuses and fears of failing. From money to time to responsibilities, ways to start a business can make a million cases for not starting a business.Let’s face it, being ways to start a business own boss is scary. In most cases, new business owners have a lot to lose with little insight into their chances of success. Worrying about the risks of business ownership is normal.But, excuses only slow ways to start a business down from reaching ways to start a business goals. If ways to start a business really want to start a business, ways to start a business need to address the reasons ways to start a business think ways to start a business can’t start a business and get rid of them. Find a solution to the issue rather than let it hold ways to start a business back.2. Absorb everythingListen to what others have to say—friends, family, experts, even ways to start a businessself. When it comes to things that have to do with ways to start a business entrepreneurial goals, be a sponge. As ways to start a business learn, start to work out the idea in ways to start a business head. Write things down. Keep notes from all the resources ways to start a business come across to develop a detailed plan.When ways to start a business tell people about ways to start a business startup, read their body language. Do they like the idea? Or, are they just being nice and really think ways to start a business’re going in the wrong direction? Encourage ways to start a business listeners to be honest with ways to start a business. The collective opinion ways to start a business get from peers could be a reflection of how consumers will react.Don’t ignore the power of advice from experts and veteran business owners. These folks know first-hand what does and doesn’t work. Smart entrepreneurs learn from the mistakes other business owners have made.3. Be a solutionRather than starting ways to start a business idea with what to sell, think about what it will solve. It’s a lot easier to gain a solid customer base when ways to start a business business is fixing a problem. Your startup should fill a hole in a certain market or niche.For example, I didn’t create Patriot Software just because I had a passion for software. I wanted to solve an issue that small business owners like me faced. After doing some research, I found I could provide payroll and accounting software that is easy-to-use and affordable.Home in on why ways to start a business are opening ways to start a business own business. Understanding ways to start a business motives will help ways to start a business create a brand and market ways to start a business company. Know what problems ways to start a business target customers face and how ways to start a business can solve them.4. Keep it simpleIf ways to start a business’re like many entrepreneurs, ways to start a business have a business idea and ways to start a business’re ready to run with it. Be careful not to let ways to start a business concept snowball into something overcomplicated. You could end up with an expensive, elaborate end-product that nobody wants to buy.As a new business owner, try to start small and narrow ways to start a business focus. Learn how to test ways to start a business business idea. Create a simple, quality good or service. A successful business idea should fulfill promises to customers and exceed expectations.Cut unnecessary features that water down ways to start a business offerings and cost ways to start a business money. As a small business, ways to start a business don’t need all the bells and whistles of a giant corporation. It will be easier to add to ways to start a business business as it grows.5. Count the costsOnce ways to start a business start to develop ways to start a business business idea, add up how much it will cost. You will need to factor in every business expense necessary to launch and operate. Some costs to keep in mind include ways to start a business location, rent, supplies, marketing, and more.Come up with the most educated number ways to start a business possibly can. Then, take whatever ways to start a business think that dollar amount is and quadruple it. Seriously, quadruple it. You’ll experience unexpected costs of running a business around every corner. It’s better to be over prepared than short on funds when bills start to roll in.When ways to start a business're thinking of the cost to start a business, don’t forget about ways to start a business personal budget. Look at how much money ways to start a business need to live, including rent, food, gas, healthcare, etc. Lay these expenses out in order of which ones ways to start a business must pay (e.g., mortgage) to ones that can slide if the money runs out (e.g., entertainment).Once ways to start a business have a grasp on all ways to start a business expenses, start to create a business budget. At first, ways to start a business might need to get some outside capital to make ends meet, like a small business loan. Go over all of ways to start a business options before putting ways to start a business money into the startup.6. Imagine ways to start a businessself with zero moneyI mean zero. There is a high probability that this will happen. I’ve had several businesses not make it for the long haul. And, I’ve come close to bankruptcy.Launching an unsuccessful business idea is a reality for many entrepreneurs. Over half of new businesses fail within the first five years of opening. How would ways to start a business handle having no incoming money?It’s a good idea to come up with a “just in case the worst outcome happens” plan. You might need to get a job on-the-fly or temporarily live with ways to start a business parents. You might have to go without comforts that ways to start a business’re used to. Figure out how ways to start a business would get by if ways to start a business business plan went south.Look at ways to start a business current sources of income. What do ways to start a business earn from ways to start a business current job? How long would ways to start a business savings last if ways to start a business quit? What unexpected things could mess up ways to start a business plan (e.g., ways to start a business wreck ways to start a business car or ways to start a business furnace breaks)? Prepare ways to start a businessself for all the situations that could happen if the business idea doesn’t work out.7. Earn while ways to start a business buildIf ways to start a business want to start a small business, don't quit ways to start a business day job—yet. Launching a successful startup is a process. Build ways to start a business business in stages and gradually transition from employee to entrepreneur.As a new business owner, it will take some time to earn a steady income. Keep ways to start a business nine-to-five and work on the business during off hours so ways to start a business can earn during those tough, first stages. Once ways to start a business have a healthy inflow of cash from ways to start a business company, ways to start a business can tackle business ownership full time.8. Speak up about ways to start a business businessOne challenge many business owners face is that they don’t know how to sell. It can be intimidating to share ways to start a business business with the world, especially when ways to start a business’re new.If ways to start a business’re worried what people will think about ways to start a business business, ways to start a business need to get over it. If ways to start a business can’t convince consumers to buy from ways to start a business and support ways to start a business company, it’s difficult to make money. Not outgoing? Fake it ‘till ways to start a business make it. If ways to start a business really want business success, ways to start a business can’t afford to be shy.In my early days as an entrepreneur, I had to to do public speaking for the first time. Back then, I didn’t have any training or experience in talking to large groups of people, not to mention I wasn’t very keen on the idea of facing my worst fear.But, if I wanted my ways to start a businessng company to succeed, I need to to get out of my comfort zone. This came in the form of planning and hosting nearly 70 three-day conventions for my customer base of network recruiters.I can’t begin to tell ways to start a business how afraid I was. As it turned out, I became a lot more comfortable in front of people after speaking at the conventions. Though I was more introverted than extroverted, I learned to “put myself out there” for the sake of my business.Be ready to speak confidently about ways to start a business business, even if it makes ways to start a business uncomfortable. As a new business owner, ways to start a business will need to market and network constantly. From networking with clients to negotiating supplier payment terms, ways to start a business must be able to communicate.9. Know the legal requirements for starting a small businessStarting a business is exciting. Laws are not. But, ways to start a business need to understand the rules that come with opening a business. If ways to start a business fail to follow government regulations, ways to start a business could face steep penalties.From forming a legal structure to setting up an accounting system, ways to start a business must follow laws. You need to register the business with ways to start a business state. You must also take care of business-specific tax liabilities. And as ways to start a business hire workers, ways to start a business need to follow employer laws.The rules that apply to ways to start a business depend on ways to start a business state, business structure, and industry. Consider talking to a small business accountant as ways to start a business set up ways to start a business company.10. Balance passion with wisdomOne of the most important ingredients in a successful business idea is passion. Passion will consistently drive ways to start a business to improve ways to start a business process so ways to start a business business grows.That said, don’t let passion take over all ways to start a business decisions. Passion will move ways to start a business forward, but knowledge will point ways to start a business in the right direction.Conduct market research on ways to start a business industry and talk to target customers to find out ways to start a business business’s potential. Ask experts questions about launching a startup. Reach out to professionals that can help ways to start a business with certain areas of business, such as financial advisors and lawyers.As ways to start a business business starts to come together, think of it like driving a car. Let ways to start a business passion hit the gas pedal and ways to start a business mind control the steering wheel. That way, ways to start a business can be confident about the direction ways to start a business’re headed and sustain the momentum ways to start a business need to get there.12 Ways to Start a Business:Finding the Real OpportunitiesDo ways to start a business wish ways to start a business could start a business? Are ways to start a business looking for real business opportunities and don't want to waste money on business opportunity scams? The best business ideas are right in front of ways to start a business. Here are 12 time-tested ways to find ideas to start ways to start a business own business.Business ideas are all around ways to start a business.They are lurking in ways to start a business garage, in ways to start a business basement, in ways to start a business kitchen, and in ways to start a business children's room. You'll find them in social media conversation ways to start a business participate in, at ways to start a business neighbor's house and at work. They're hiding in the annoyances ways to start a business deal with daily and in the joways to start a businesss celebrations in ways to start a business life.They are right there in the vegetables ways to start a business brought in from the yard... in the stack of papers next to ways to start a business laser printer...in the back of ways to start a business truck... and at the back of ways to start a business mind.You don't need to be a genius or an MBA to spot those business ideas and turn them into profits, either. Identifying business opportunities is often as easy as identifying problems many people share and finding a way to solve them.When Matthew Osborne, an entrepreneur from Columbus, OH, wanted a way to make money, he found one right at his feet: dog dirt.Unlike most people who just gripe about stepping in it or having to clean it up, he started a business removing dog waste from homeowners' yards.The business was an immediate success, and after several years, he sold the business for a quarter of a million dollars. Even then, however, he continued to make money from his idea by writing a booklet about how to start a pet waste removal business and selling the booklet on the Internet.Other business owners have turned their hobbies, interests, and skills into satisfying and often lucrative businesses, simply by seeing a need in the world around them and finding a way to fill it. You can, too.Do what ways to start a business love to doBusinesses don't just happen. They are made. How ways to start a business start ways to start a business business and what ways to start a business choose to do is up to ways to start a business. But, whether ways to start a business plan to profit by twisting balloons into smile-generating shapes or orchestrating the growth of multimillion-dollar, multinational companies, ways to start a business success relies on what ways to start a business bring to the business. If ways to start a business love what ways to start a business do, ways to start a business passion for the business will drive ways to start a business to be knowledgeable, creative and persistent. On the other hand, if ways to start a business feeling for what ways to start a business do is lukewarm, ways to start a business success will be, too.Turn old standbys into new productsTruly new concepts are few and far between. Most new products or new business ideas are simply spin-offs of old ones. Inline skates is one good example. Essentially, they are ice skates on wheels. Or, depending on ways to start a business point of view, streamlined roller-skates. Other business ideas are nothing more than new ways of marketing mundane products. Take , for example. Florists were around as relatively small, local stores for years --but then Jim McCann, who started with a single retail shop in 1976, acquired the phone number 1-800-Flowers and developed a network of florists. The company saw an opportunity to grow online and started selling through the early commercial online services, and then the Internet.You may not have the money, management ability, contacts or desire to launch a major new product like inline skates or the energy or desire to turn ways to start a business single store location into a multimillion-dollar sales organization. But ways to start a business don't have to launch anything that large to start a business or introduce a new product. You need to think about what people want to buy and how they would like to buy it.Years ago when my kids were little, I made money selling beanbags. The twist? I designed them in the shape of frogs and I filled them with birdseed instead of beans to make them pliable and less lumpy to the touch. To attract attention at craft shows, I displayed them in various human poses (sitting up, laying on their side resting their head on their hand, or hugging each other, for instance). I could produce them quickly and kept my costs low by making the frogs from inexpensive fabric remnants. That allowed me to price the frogs low enough to make them great impulse buys for parents who wanted to buy a small, inexpensive gift for a child.You can spin almost any skill or industry knowledge into marketable new products or services.A neighbor turned his skill at fixing cars into a repair and tune-up service. His angle? He was mobile. Customers didn't have to drop their car off at the shop. Instead, the "shop" (a van outfitted with tools and auto parts) came to them. Another acquaintance built a business by purchasing large quantities of chemicals and repackaging them in smaller quantities.And then, there's the grandmother who couldn't find a product to organize her handbag. So, she went out and created one, and turned the product into a million-dollar business.Look for mundane money-makersYou don't need to create exciting new products or services to go into business, either. Millions of business owners profit by selling routine and sometimes unglamorous services such as window washing, car repair, sandwich making, building maintenance, house cleaning, and plumbing. The key to making money with the mundane is to sell something ways to start a business customers can't do, don't want to do, don't have the time to do, or can't get done well elsewhere.Tip: one way to making really big money with mundane services is to develop a unique and reproducible method for marketing and delivering the service and then open up multiple offices, or franchise the concept. If ways to start a business plan to franchise ways to start a business idea or sell it as a business opportunity, retain an attorney early on who is familiar with franchise law and can help ways to start a business steer clear of the pitfalls.Turn that hobby into cashDo people ooh and ah at ways to start a business handiwork? Whether ways to start a business are a wiz at creating floral arrangements or at writing software, look for ways to turn ways to start a business hobby into a business. You might want to manufacture ways to start a business items in quantity, license them to other manufacturers, sell them by mail order, at flea markets or on consignment, or open ways to start a business own retail outlet selling supplies to others with similar interests.Ask the reference librarian at ways to start a business public library to help ways to start a business find trade magazines pertaining to ways to start a business hobby, and read those to generate new business ideas.Reach out and teach someoneDo ways to start a business have a skill others want to acquire? Do ways to start a business have a knack for explaining things so others can understand them? If so, don't give ways to start a business expertise away. Start charging for it!For instance, if ways to start a business are a karate expert, ways to start a business might teach at a karate school or open ways to start a business own karate school. If ways to start a business're a talented artist, ways to start a business could teach art at home or in a school.Tip: Make extra money selling books, supplies, or other items ways to start a business students will need to buy to complete the course.Sell training seminars to corporate AmericaDon't limit ways to start a businessself to training individuals or private groups of people. Look for ways to polish up ways to start a business act and cash in on the $50 billion corporate training market.What kind of training do corporations buy? Everything from sales, management, and computer training courses to self-defense courses.To locate training opportunities, contact the human resources department and ask to speak to the person in charge of training programs. Introduce ways to start a businessself to that person and make an appointment to discuss the company's needs and ways to start a business ability to fill them. If ways to start a business get the assignment, be sure to have handouts for the class so they know how to reach ways to start a business for more intensive training on their own.Mass produce ways to start a business adviceSelling ways to start a business product or service one-on-one limits the amount of money ways to start a business can earn to the number of people ways to start a business can personally see. To increase ways to start a business profits without significantly increasing ways to start a business work, consider turning ways to start a business expertise into booklets, books, computer programs, MP3s and DVDs that ways to start a business can market in quantity.You can use ways to start a business computer to produce the printed matter and CDs, DVDs, and MP3s. You can outsource editing and production to professionals if ways to start a business don't have those skills ways to start a businessself. When sales volume grows, ways to start a business may also want to outsource production and fulfillment.If ways to start a business need help producing audio or video, look for an independent contractor to do the work for ways to start a business. are all good places to find freelance help.Be an industry consultantThis is another great way to increase ways to start a business bank account. If ways to start a business can solve business problems (such as how to bring wastewater into compliance with EPA regulations) or answer important business questions (what steps should be taken to increase market share in a target market or how to manage inventory more efficiently) ways to start a business can earn substantial hourly fees selling ways to start a business advice to corporations as a consultant. Downsized corporations can be a good source of consulting business since they may no longer have experts they need on staff.Turn a former employer into a valuable source of new businessJust because ways to start a business leave a company doesn't mean it doesn't need ways to start a business services. Companies often retain the services of former workers on a freelance or consulting basis. That way they get the benefit of trained personnel without having to pay payroll taxes and benefits. If ways to start a business leave a company on good terms, ask about contract or freelance opportunities. Don't stop with contacts who work with the former employer, either. Call ways to start a business former employer's suppliers and customers and tell them about ways to start a business capabilities. Call their competitors, too. Stress ways to start a business industry knowledge, contacts and skills. You may soon find that the income ways to start a business earn exceeds what ways to start a business made as an employee.Modify one of ways to start a business existing productsSometimes all it takes to create a "new" product is to make a slight change in an existing product.Harrison-Hoge Industries is a mail order company in Port Jefferson, NY, that sells fishing lures, inflatable boats, and other outdoor gear. To expand their line, the company added a wide-brimmed, canvas hat called the Campesino to its catalog. The hat was a big success, but the owners of the company thought there might be more they could do with it. And there was.They discovered they could adapt the hat to sell in specialized markets just by changing the hat band. As a result, they began to supply the Museum of Natural History and the Guggenheim Museum (both in New York City) with hats. Each museum's hat has its own distinctive hat band.Skip the start-up headaches: purchase an existing businessWhen ways to start a business start a business from scratch ways to start a business have to jump through hoops to find and train employees, build up a customer base and find suppliers. But when ways to start a business buy an existing business much of this infrastructure will already be in place.A GUIDE TO STARTING A BUSINESSEntrepreneurship is an idea that appeals to many, but figuring out how to start a business can sometimes be so overwhelming it scares people away. It’s time to stop telling people that ways to start a business’re going to start a business and actually put in the work to make it happen. In this article, we’ll break down the steps of starting a business to set ways to start a businessself up for success.How to Start a BusinessStarting a business involves planning, making financial decisions, doing market research, and acquiring knowledge in areas ways to start a business never thought ways to start a business would learn about before. We created this 12 step guide to starting a business to help ways to start a business put ways to start a business best foot forward today. It is important to note that there is no one size fits all model to starting a new business but these steps will help ways to start a business organize ways to start a business thoughts, and iron out important details so when ways to start a business launch ways to start a business business ways to start a business have answered all the important startup questions.Step 1. Ask Yourself if You’re ReadyThere will never be a right time to start a business. If the stars couldn’t align for Romeo and Juliet, they probably won’t align for ways to start a business either. But ways to start a business can either look at that as the thing that holds ways to start a business back from starting or use that to push ways to start a business to start today.When it comes down to deciding if ways to start a business’re ready to start a business, it’s more about mindset than timing. Are ways to start a business in the frame of mind right now to win? If ways to start a business didn’t shout heck yeah at ways to start a business computer screen, ways to start a business might need to re-examine if entrepreneurship is the right path for ways to start a business.The reality is saying ways to start a business’re going to start a business is easy. But doing it, turning nothing into something that makes money, that can be a whole lot tougher.And ways to start a business need to be mentally prepared to take something on. Why? Well, there are going to be challenges like creating ads that generate sales. And if ways to start a business mindset isn’t in the right place, any failure could devastate ways to start a business. But if ways to start a business’re in the right mindset, ways to start a business’ll KAPOW! failures until ways to start a business finally start hitting ways to start a business big wins.Step 2. Determine What Type of Business to StartThe next step of starting a business is to figure out what type of business to start.Is there a niche that ways to start a business’re particular passionate about? Are ways to start a business looking for a business that ways to start a business actively work on or just own? Are ways to start a business looking to turn ways to start a business hobby into a business? These are just a few of the questions ways to start a business need to ask ways to start a businessself before starting a business.You can start everything from a Shopify store like MVMT Watches did to a freelance business. You can choose to build a business by ways to start a businessself by owning a consulting business or ways to start a business can build a company with a team such as a manufacturing company or a restaurant.To figure out what type of business ways to start a business want to start, create a list of things ways to start a business’re passionate about. For example, yoga, personal finance, dogs, movies, food, and clothing.Next, use a tool like Keywords Everywhere to look up the search volume of ways to start a business list in Google. This will help ways to start a business understand how popular ways to start a business list of ideas is. You can also use Google Trends to analyze whether the trend is trending upward or downward or if it’s stable to determine the niche’s long-term viability.Then, look at the top three most popular keywords on ways to start a business list and answer this question, “In five years from now, which niche would not only get me out of bed in the morning but would also excite me enough to continue creating content/products/tools for it?”So, what’s ways to start a business big business idea? Feel free to share in the comments.Step 3. Do Market ResearchSo now that ways to start a business have ways to start a business business idea it’s time to figure out if and how ways to start a business can make money in that niche.For example, say ways to start a business wanted to start a dog business. You can start a dog kennel, a grooming business, a dog sitting website, a dog blog, or start an online dog products store.In this phase, ways to start a business’ll want to break down which business type is easiest to start, best aligns with ways to start a business talents, fits within ways to start a business budget, and analyze how the industry is performing.If ways to start a business’d like to start a business with more than one idea, ways to start a business can definitely do that. For example, a person selling kitchen equipment online can also other home-related items . And a kitchen blog can also be monetized with an online store.After figuring out what type of business ways to start a business want to start, it’s time to start planning ways to start a business business.The search volume in the graphic below comes from the Keywords Everywhere Chrome extension in case ways to start a business want to use that in ways to start a business research.Step 4. Set Realistic Goals and ExpectationsOne of the biggest reasons for failure in business comes from naive expectations. I constantly hear stories of people pouring thousands of dollars into ads thinking they’ll triple or quadruple their money only to end up with that big, fat zero.So, let’s try to paint what a realistic scenario looks like. Your first year in business is all about failure. Why? Because it’s ways to start a business first business.Most people approach their first business with a sense of false optimism. If that guy can do it, so can I, ways to start a business casually think to ways to start a businessself. But what ways to start a business casually ignore is the fact that that guy is on his fourth business or he’s been running it for seven years.I love, love, love how excited people are as they begin learning how to start a business. But if ways to start a business go into it thinking ways to start a business’re going to dominate the world on day one, ways to start a business’ll be failing in a matter of months due to drastic disappointment.The difference between a successful business and a failed one is perseverance. Do ways to start a business have what it takes to keep promoting ways to start a business business even when ways to start a business have no customers or website visitors after a month? Are ways to start a business savvy enough to know when a strategy just isn’t going to work? And are ways to start a business patient enough to play the slow and steady game (meaning that ways to start a business might not see sales right away but will see bigger returns down the road)?Now that ways to start a business know that those first few months will take every ounce of hustle ways to start a business’ve got, how will ways to start a business approach ways to start a business goals in the foundation stage of ways to start a business business?Maybe instead of focusing on ways to start a business first sale, ways to start a business might focus on creating content to drive relevant traffic. Or maybe before ways to start a business start a business, ways to start a business choose to build a following on Instagram so that ways to start a business have an audience when the time to launch comes.Step 5. Create a One-Page Business PlanUnless ways to start a business’re going to the bank to get a loan, ways to start a business don’t need to overspend time on ways to start a business business plan. On a piece of paper, handwrite a plan for ways to start a business business. While this may be a bit voodoo (sorry!) I find that whenever I handwrite goals, I’m always more likely to achieve them. I always carry my goals around with me which helps remind me of them so I can’t escape them.Now back to real-world advice. On ways to start a business one-page business plan include the following:Problem ways to start a business business solvesA one-sentence elevator pitch (what does ways to start a business business do)A list of ways to start a business target audiences (e.g. people who own dogs, people who follow dog accounts on social media)SWOT Analysis (Strengths, Weaknesses, Opportunities, and Threats to ways to start a business business)Marketing plan (list of ideas on how ways to start a business’ll promote ways to start a business business)Financial plan (list of business costs, how ways to start a business’ll make money to pay for the business in the beginning and how ways to start a business business will make money)Financial projections for each quarter (e.g. January to March, April to June, etc.)Step 6. Get FeedbackSo now that ways to start a business’ve got the idea, ways to start a business’ve set some goals, and ways to start a business’ve created a plan, it’s time to get feedback on ways to start a business idea. This stage has been known to kill many ideas (and sometimes even good ones). The point of the feedback stage is to get a second opinion on how ways to start a business can improve ways to start a business idea. Instead of asking for feedback on the business idea, ask for feedback on a certain component of it. And whatever ways to start a business do, don’t ask someone ways to start a business love. Trust me.Most cities have business centers where ways to start a business can speak with an in-house entrepreneur who will give ways to start a business feedback on how to start a business. Some cities even have programs for ways to start a businessnger adults that allow ways to start a business to be mentored by an entrepreneur in ways to start a business field. Whether ways to start a business’re planning to work on tried-and-tested or unusual business ideas, be sure to get feedback from the right people to help ways to start a business inch closer to business success.Step 7. Find A Way to Pay For Your BusinessThe most common way people pay for their business is through their 9 to 5 job. Avoid quitting ways to start a business day gig until ways to start a business’ve generated enough to pay ways to start a business costs, taxes, and ways to start a businessself with six months runway. In the beginning, ways to start a business likely won’t be able to pay ways to start a businessself, as ways to start a business’ll need to reinvest ways to start a business earnings back into ways to start a business business so ways to start a business can scale the business faster.However, some businesses have very minimal costs such as freelance businesses which might require some software or a computer which ways to start a business might already own or have access to.Step 8. Pair Up With a PartnerSolopreneurship is on the rise and so this won’t apply to all. But success in business sometimes comes in pairs. Rome wasn’t built in a day and neither was any successful business. There’s going to be a lot of time and resources that’ll go into ways to start a business business. And having someone ways to start a business trust to build alongside ways to start a business can allow ways to start a business to break up the workload so ways to start a business progress faster. It’s also great for holding ways to start a business accountable.The important thing to stress about a partnership is that ways to start a business really need to know how well ways to start a business work with someone. Is this person trustworthy? Have ways to start a business worked together before? How have the two of ways to start a business managed conflicts in the past? Do ways to start a business skillsets balance each other out? Will a business relationship ruin ways to start a business current relationship/friendship? Make sure to ask all the tough questions because choosing the wrong partner, if ways to start a business even decide to have one at all, can have negative consequences.Step 9. Name Your BusinessComing up with the perfect business name can be hard, especially if ways to start a business want a .com domain to go along with it. You can use a free business name generator to help ways to start a business come up with a name.Most brands try to include their keyword in the brand name, such as Fashion Nova. However, some brands create a unique name, such as Oberlo.The business name ways to start a business choose should be catchy, memorable, easy to spell when heard, have available usernames and a domain, and be concise.Sometimes the best naming ideas come after bouncing names with a friend as a second opinion helps give ways to start a business a different perspective. So feel free to get a second opinion if ways to start a business feel stuck when choosing the right brand name.Step 10. Register Your BusinessIn some cities or states, ways to start a business don’t need to register ways to start a business business until ways to start a business’ve earned a set amount of income or profit from it so ways to start a business’ll need to do ways to start a business due diligence to see what laws apply for ways to start a business.However, some entrepreneurs register their businesses on day one to prevent liability. For example, if ways to start a business’re incorporated on day one and ways to start a business get sued in the early stages of ways to start a business business, ways to start a business business takes the hit instead of ways to start a business. So, the sooner ways to start a business incorporate ways to start a business business, the safer ways to start a business (personally) are from a legal perspective.Of course, incorporation isn’t the only business model. You can also choose to become a sole proprietor or create a partnership business. You’ll need to do some research prior to starting a business to determine which business model is best for ways to start a business situation.Starting a business isn’t easy, but it also doesn’t have to be daunting. Whether ways to start a business want to bring a product into the world to solve a problem ways to start a business’re having, build a profitable business to be self-employed, create business opportunities for the people around ways to start a business, or bring in some extra money every month, these steps on how to start a business can help ways to start a business make ways to start a business dreams a reality.Conclusion As A Summary Of Ways To Start A BusinessIf the executive summary states what the plan will be, then the conclusion reviews what the plan has stated. A business plan conclusion redefines the company's needs, the competence of management to achieve the goals and the key points to justify why the business will succeed with funding. Investors are looking for reasons why they should risk money in the venture; this is achieved by highlighting the unique ways to start a business in which the company solves problems and how an influx of funding will yield success. Usually, there's a specific call to action in the conclusion.End Notes And ReferencesCreating a business plan requires market and industry research. The larger the company or the more complicated its products or services, then it is even more important that research is needed to verify regulations, industry trends and technology innovations. End notes are the expert resources used in writing the plan and justifying propositions. These are like a bibliography in a high-school research paper.End notes refer to specific data cited in the plan, listed in order of use by the correlating fact within the business plan. For example, the competitive-analysis section might cite consumer data obtained by public industry reports. If this is the third citation of data, the superscript is the numeral three that corresponds to the third end note.

How to Choose the Best Legal Structure for Your Business – Pros & ConsAre you thinking about turning your latest idea into a business venture? You’ll need to do a lot of work to get off the ground. The Small Business Administration‘s 10-point checklist for budding entrepreneurs is a great place to start. It ticks off a list of crucial to-dos for anyone in the early stages of business formation:Brainstorm and write your business planLook for assistance and training in your industry or area of expertiseChoose a business location (domicile and physical location, if you’re not working out of a home office or coworking space)Find startup financing for your small businessDetermine your company’s legal structure and set up your business with Rocket LawyerRegister your business name (“Doing Business As”)Get a tax identification number and ensure you’re in compliance with local, state, and federal tax regulationsGet a business license and permits, if requiredLearn your obligations vis-a-vis hiring employees, including responsibilities under the Fair Labor Standards Act and what to do if an employee files an FLSA complaint against youFind local assistance from the SBA and local business resourcesWas I in charge at the SBA, I’d add another point: Keep looking for ways to reduce your small business expenses. That’s more of an ongoing obligation, but its importance is impossible to overstate, and it’s never too early to get started.In any event, number five on that list (determining your company’s legal structure) is crucial, with plenty of pitfalls to avoid. Let’s look at the most common business structures available to U.S.-based entrepreneurs – and a handful of less-common structures too. You’ll learn the basic attributes, advantages, and disadvantages of each structure. Afterward, you’ll be able to properly assess which option is right for you.Sole ProprietorshipA sole proprietorship (sole prop) is the simplest and least formal business structure available to U.S. business owners. By definition, it’s also the least conducive to growth. All sole props share some essential attributes:Single Owner and Operator: A sole prop is owned and operated by one person only. Sole proprietors are free to hire employees and retain contractors, but they can’t add partners or issue stock to shareholders. If you want to bring new owners into the fold or sell equity in exchange for funding, you need to reorganize it as a partnership or corporation.No Formal Incorporation: Sole proprietorships aren’t formally incorporated as corporations or organized as partnerships. Sole props that do business under a fictitious name, rather than the operator’s name, typically register those names with state authorities. (These names are known as “Doing Business As” names, or DBAs.) If your sole prop does business under your name, you don’t need to register a DBA.Tax Identification: If you’re your sole prop’s only employee, you can file taxes using your own Social Security number. If you hire employees, you’ll need to get an Employment Identification Number (EIN) from the IRS. This costs nothing and takes only a few minutes.Separate Finances: Sole prop owners aren’t legally obligated to maintain a wall of separation between their personal and business finances. However, it’s highly advisable that you do so, for multiple reasons: to determine that your business is profitable, to keep track of your income and expenses for tax purposes, and to provide potential creditors with a precise accounting of your company’s finances. Set up a business bank account and apply for a small business credit card. Route all income to the former and use the latter for business expenses only. This kills two birds with one stone: keeping your business finances separate while building credit.Pass-Through Taxation: Sole props do not file taxes separately from their operators. As the owner of a sole prop, you’ll attach Schedule C or Schedule C-EZ (Form 1040) to your personal tax return. If your enterprise was profitable during the tax year, you’ll likely be liable for self-employment tax. You’ll report self-employment income and calculate self-employment tax on Schedule SE (Form 1040). If you expect to owe more than $1,000 in tax after subtracting any withholding taxes, and if your withholding taxes comprise less than 90% of the taxes you expect to owe in the current tax year or 100% of the prior tax year’s tax obligation, you’ll need to make quarterly estimated tax payments. For more detail about this and all tax questions, consult our Tax Guide or a tax advisor.Pros of a Sole ProprietorshipSimplicity. It’s super easy to set up a sole proprietorship. You don’t need to file articles of incorporation, draft an operating agreement, or make public financial disclosures. In many cases, you don’t even need to register a company name. You should keep a precise accounting of your business finances, but that’s not legally required.No Double Taxation. Sole props are taxed on a pass-through basis, meaning your business income is combined with nonbusiness income for tax purposes. Your sole prop doesn’t pay taxes on business income that then passes through to you as taxable personal income, a circumstance known as double taxation. If you sell taxable goods or services, you may be required to register with the appropriate tax authorities and pay local and state sales tax.Cons of a Sole ProprietorshipPersonal Liability for Business Debts and Obligations. The glaring disadvantage of a sole proprietorship is the operator’s personal liability for any debts or obligations incurred by the business. For instance, if you purchase equipment on credit, then hit a rough patch, and find yourself unable to meet the vendor’s payment terms, the vendor may have the right to seize your personal assets (including your personal bank account, house, and car) to satisfy the debt. Shareholders in incorporated entities aren’t personally liable for business debts.Reticent Lenders. Unless your sole proprietorship has substantial assets to put up as collateral, it’s not likely to qualify for loans from traditional lenders. This is especially true for newer entities and owners with spotty personal credit. You may have more luck with nontraditional online lenders, many of which market to sole props and smaller corporations. The devil’s often in the details, however – these loans typically come with high-interest rates and unfavorable terms. You’re better off relying on personal savings, loans from family and friends, and other nontraditional startup financing options.Potential for Greater Tax Liability. Sole props are taxed on a pass-through basis. When they’re profitable, they increase their owners’ total taxable income. A big enough increase in your taxable income bumps you into a higher tax bracket and raises your marginal rate, reducing your take-home pay proportionally. While this sounds like a good problem to have, it’s not ideal for sole proprietors who operate their businesses for side income and rely on salaries or hourly wages for the bulk of their income. Neither is it ideal for sole prop owners who set aside substantial fractions of their business income to finance equipment, inventory, or unexpected purchases.PartnershipThink of a partnership as a multimember sole proprietorship. The Small Business Administration describes partnerships as “a single business where two or more people share ownership” and “each partner contributes to all aspects of the business, including money, property, labor or skill,” while sharing “in the profits and losses of the business.” Like sole proprietors, partners are by default personally liable for partnership debts and obligations.Like sole proprietorships, partnerships are informal. “Generally, partnerships do not require any filings with state agencies,” says Shawn Toor, a business law attorney with Seattle-based Williams Kastner. “A partnership can be formed merely by the act of two or more people agreeing to carry on business and share in the profits and ownership control.”Partnership AgreementsMost partnerships are controlled by contracts known as partnership agreements. Partnership agreements govern matters like:The partnership’s legal name and DBA nameThe partnership’s term – either time-limited or in perpetuityGeneral-purpose of the partnership – the business activities in which it’ll engageInitial contributions of each partner, such as cash and property, and the installment schedule on which those contributions will be madeProcedures for future contributions to the partnershipProcedures for admission of new partnersProcedures for distribution of profits and losses to each partner, including frequency and proportionalityManagement duties of each partnerVoting procedures – which matters require a vote and the number or proportion of votes needed to decide in favorProcedures for the sale or transfer of a partnership interest (buy-sell agreements)Procedures for the expulsion of a partnerProcedures for continuing or dissolving the partnership upon the death of a partner – often included in buy-sell agreementsProcedures for dispute resolution, such as mediation or arbitrationYou can find generic partnership agreement templates online and modify them to your partnership’s needs. However, these templates frequently leave out important eventualities that could affect your interest in the partnership – or the partnership’s very existence – going forward. For instance, a carelessly drafted partnership agreement could allow one partner to unilaterally bind the entire partnership, possibly against the other partners’ wishes.It’s therefore highly advisable to retain an attorney to draw up a customized partnership agreement on your behalf. If your budget doesn’t allow for this at the outset, revisit the situation as soon as possible. Your partner(s) should be amenable to creating a customized partnership agreement to protect their own interests.There are three main types of partnerships. You’ll designate which type of partnership you’ve chosen in the partnership agreement.General PartnershipA general partnership is the most common and straightforward type of partnership. Typically, general partners share equally in the partnership’s profits and liabilities, take on equitable duties, and have equal voting rights. The partnership agreement controls situations in which partners’ interests and duties diverge. For instance, many partnerships assign executive duties to a single managing partner. Others dole out profit shares according to seniority, with longer-serving partners taking a greater share of the entity’s net income.Limited PartnershipA limited partnership (LP), also known as a limited liability partnership, allows for a class of “limited partners” who essentially function as passive investors in the venture. Limited partners have little or no influence on the partnership’s decision-making processes and day-to-day management activities. They are not personally liable for the partnership’s debts or obligations. And they receive profit or loss shares proportional to their interest, which is usually smaller than that of general partners.LPs are more complicated than general partnerships. They are suitable for larger, capital-intensive ventures that attract lots of investors – not so much for small, two- or three-person ventures, which are easier to manage through general partnerships.On the bright side, they’re more discreet than traditional corporations. “The LP agreement is typically a privately signed document,” says Jason Powell, a corporate law attorney at Missoula, Montana-based Bjornson Jones Mungas, PLLC. “[LP agreements are] usually not recorded or available to the public, which allows for anonymity if desired.”Joint VentureA joint venture is a time- and scope-limited general partnership. It’s ideal for one-off projects that require pooled resources, such as commercial real estate development. Partners in a joint venture can convert the enterprise into a traditional general partnership by amending the partnership agreement.Pros of a PartnershipPooled Resources and Shared Responsibilities. Unlike sole proprietors, partners can pool resources without seeking outside investors or taking on debt. They can also share day-to-day management and executive decision-making responsibilities commensurate with their credentials and abilities.No Formal Incorporation Required. Unlike corporations, partnerships aren’t required to file articles of incorporation. For a variety of reasons, most partnerships are governed by written, legally binding partnership agreements to which all partners consent, but these agreements don’t have to be reviewed by or filed with local or state authorities.No Double Taxation. Partnership income is taxed on a pass-through basis. Partnership income is reported on Schedule K-1 (Form 1065), which the partnership must furnish to each partner by the annual deadline. Each partner adds his or her share of the partnership income, as reported on Schedule K-1, to his or her personal income from other sources.Flexible Time Horizon. Partnerships do not necessarily exist in perpetuity. If you need to pool your resources with other investors for a single project or venture, but have no wish to associate with them once the project is completed, you can create a joint venture specifically for that purpose. When the project wraps up, the partnership dissolves, and you and your partners part ways.Cons of a PartnershipPersonal Liability for Business Obligations. As with sole props, the greatest disadvantage of a partnership is personal liability for business debts and obligations. Your share of liability is proportional to your interest in the partnership – if you own 30% of the partnership, you’re responsible for 30% of its liabilities.Potential for Greater Tax Liability. Like sole prop income, partnership income is treated as personal income. If your partnership is profitable, your personal income will increase, potentially raising your marginal tax rate, increasing your overall tax burden, and reducing your usable cash on hand.Requires a Formal Agreement. Though partnerships don’t require formal articles of incorporation, virtually all are governed by partnership agreements. These contracts can be quite complex, and while it’s possible to modify a serviceable template at low cost, it’s expensive to hire an attorney to draft a customized agreement that accounts for the widest possible range of eventualities.Dependent on Human Relationships. Successful partnerships depend on amicable relations between the partners – at least, between general partners. A falling out among partners, for whatever reason, can cripple or destroy an otherwise successful partnership. Before entering into a long-term partnership (as opposed to a joint venture), consider your relations with the other partners carefully and ask yourself whether you can see yourself working with them for years to come. If you’re not sure, think twice.Shared Decision-Making Processes. Successful partnerships also depend on a consensus-driven decision-making process, especially when only two or three partners are involved. If you’re not comfortable talking through decisions with your collaborators, a closely held partnership may not be the best fit.Corporation (C-Corp)A corporation, sometimes known as a C corporation or C-corp, is defined by the Small Business Administration as “an independent legal entity owned by shareholders.”“Creating a corporation is like creating a human being,” says Toor. “Corporations can be sued, sue others, hold property, [and exist within] a partnership.”According to the SBA, “the corporation itself, not the shareholders that own it, is held legally liable for the actions and debts the business incurs.” Compared with sole proprietorships and partnerships, whose members are held personally liable for business debts and activities, this is a major advantage for corporate shareholders.C-corps are subject to greater regulation than partnerships and sole proprietorships. In addition to onerous incorporation requirements, C-corps face ongoing regulatory burdens, such as the requirement that they hold annual shareholder and director meetings. If you’re running a small enterprise with limited overhead, incorporation could be more trouble than it’s worth. Here’s a look at the basic initial and ongoing steps you’ll need to take to set up a C-corp.Incorporation RequirementsCorporations must be formally incorporated with state business authorities, typically the Secretary of State office or equivalent. This requires drawing up and filing articles of incorporation, which include basic information about the entity:Company name and DBARegistered addressName and address of registered agent who handles official correspondenceThe company’s business activities or purposeNames of directors and offersInformation about the issuance of corporate stock, including share count and par valueLimitation of liability (indemnification) of officers and directorsDuration of incorporationDissolution proceduresAdoption of corporate bylaws (operating agreement), if extantYou can find low-cost articles of incorporation templates online. However, as with partnership agreement templates, cookie-cutter articles of incorporation aren’t ideal. It’s better to spend more on custom-drafted articles of incorporation that account for a wider range of eventualities specific to your company.Corporate Operating AgreementsIn addition to articles of incorporation, which are required by law, most corporations are governed by operating agreements or bylaws. These documents spell out in detail the way the corporation is to be governed. Like partnership agreements, they’re not mandated by law, but they’re highly encouraged.Corporate Tax ObligationsUnlike sole props and partnerships, C-corps are not pass-through entities. For tax purposes, they are treated as legally separate entities from their shareholders. They pay federal, state, and sometimes local income tax at corporate rates, which are different than personal income tax rates. They are also subject to different credits and deductions than individual filers. Check with the IRS for more information about corporate tax obligations, including forms required to file.Pros of a CorporationLimited Liability for Owners. As long as the corporate veil is preserved, meaning shareholder and business assets are kept strictly separate (not commingled), C-corp shareholders are not personally liable for the entity’s debts and obligations. They aren’t required to personally guarantee loans or purchases made on credit, and their personal assets can’t be seized to satisfy creditor claims.Easier to Generate Capital. Corporations can raise capital by selling shares of stock (equity). Partnerships that wish to raise funds without taking on debt must take on new partners or compel additional contributions from existing partners. Sole proprietors are even more constrained – they need to dip into their personal savings, borrow against tax-advantaged accounts, ask friends and family members for loans, or pursue other less-than-ideal options.Greater Legitimacy. For better or worse, incorporated entities appear more legitimate to lenders, vendors, and potential customers. This legitimacy can open lucrative doors: loans approved at more favorable terms, discounts or favorable credit arrangements on big-ticket equipment or inventory purchases, and greater credence from sales prospects. For ambitious companies hoping to raise funds from venture capitalists or private equity firms, the C-corp is the gold standard. I spoke with Bryan Clayton, CEO of Nashville-based GreenPal, about his initial choice to incorporate locally as an LLC. “[Incorporating as an LLC] was quick and easy and cheap. We figured it was the best way to get our company up and rolling,” he says. “What we didn’t realize is that an LLC is a no-go for institutional investors. Any outside investors such as private equity, angel investors, or venture capitalists will insist that your company be a…C-corp.” Clayton adds that the incorporation domicile is important too: “Delaware has an abundance of case law that is favorable to corporate structure, investors, and board members,” he says, “and is [therefore] generally accepted as the standard by the investor community.”Built-In Incentives for Employees. Equity is a powerful incentive for current and prospective employees. Corporations frequently reward performance, longevity, and other value-adds with stock or stock options, attracting high-quality employees and incentivizing them to stick around. In partnerships, the possibility of making partners is a comparable incentive, but it’s not practical to offer that carrot to hundreds or thousands of associates. Corporations can offer stock to any employee they like.Cons of a CorporationPotential Tax Disadvantages. C-corps’ shareholder distributions are effectively taxed twice: once at the corporate level, before distributions are made, and again as personal income on shareholders’ personal tax returns. Though corporate income tax rates tend to be lower than individual income tax rates, and most corporations use generous deductions and credits to reduce their tax burdens, that’s not always enough to offset the effects of double taxation.Expensive and Cumbersome to Form. C-corps are expensive and cumbersome to form. Proper incorporation requires substantial legal and financial assistance, especially in heavily regulated industries.Greater Regulatory Burden. Even privately held corporations are subject to greater regulatory burdens than partnerships and sole proprietorships. If insulation from personal liability and greater capital-generation potential don’t outweigh these considerations, look to a lower-key business structure.Lots of Potential Stakeholders. Larger corporations can have hundreds or thousands of individual voting shareholders, all of whom need to be kept informed about the company’s activities and given a voice in the company’s direction. This requires a tremendous investment of financial and human resources. Even in more closely held corporations with tens of voting shareholders, the potential for disagreement is greater than in general partnerships, which usually involve only a handful of egos. As countless clashes between publicly traded firms’ boards and activist investors attest, larger shareholders can cause a lot of trouble when they’re determined to throw their weight around.S Corporation (S-Corp)An S corporation, also known as an S-corp, is a special type of incorporated entity that’s ideal for small to midsize businesses. Like C-corp owners, S-corp owners and shareholders are insulated from personal liability for business debts, obligations, and actions. Unlike C-corps, S-corps are pass-through entities. Their income isn’t subject to corporate income tax – it passes through as distributions to shareholders, who then pay personal income tax at an appropriate rate (usually lower than rates on wage income).Incorporating and operating an S-corp is an intensive process. Like C-corps, S-corps require articles of incorporation filed with the appropriate authorities, as well as annual shareholder meetings. Operating agreements are also strongly encouraged.S-corps have a few noteworthy twists:S Corporation Election: After incorporating, all shareholders must sign and file IRS Form 2553. Known as a Subchapter S election, this establishes the corporation as a pass-through entity subject to certain restrictions. The Subchapter S election must be made within two months and 15 days of the beginning of the tax year to which it applies, or anytime before the beginning of the tax year.Shareholder Compensation: S-corp shareholders who also work as employees – for instance, owner-operators or executives with ownership stakes – must take “reasonable compensation” (salary taxed as wage income) in addition to their profit distributions.Shareholder Restrictions: By law, S-corps can have only 100 shareholders. The potential pool of shareholders is restrictive as well: S-corp shareholders must be U.S. citizens and (in most cases) human beings. With rare exceptions, S-corps can’t be owned by other businesses or legal structures, such as trusts.Stock Restrictions: Unlike C-corps, which can issue common and preferred shares, S-corps can only issue common stock. Common shares represent equity stakes and confer voting rights, widening the pool of shareholders with sway over the company’s decision-making processes.Uneven State Tax Treatment: According to the Small Business Administration, S-corps are treated uniformly under the federal tax code, but they’re subject to varying treatments at the state level. While most states recognize S-corps as pass-through entities, some (such as New York and New Jersey) tax S-corps’ profits and shareholders’ income from said profits. If you live in a state that treats S-corps differently than the federal government, you may need to file an additional state form.This blog post from Wyoming LLC Attorney has more on the differences between S-corps and C-corps – it’s required reading for entrepreneurs deciding between the two.Pros of an S CorporationLimited Liability for Owners. Like C-corps, S-corps limit shareholder liability. As an S-corp shareholder, you’re not required to personally guarantee loans made to the business or expose personal assets to creditor seizure.No Double Taxation. Like sole proprietorships, S-corps are pass-through entities. Unlike C-corps, S-corps are not subject to corporate income tax. By extension, S-corp shareholders are permitted to deduct their firms’ losses, if any, from their personal income. “Most businesses initially lose money,” says Toor. “S-Corps may help lessen the blow of operating at a loss [because] S-Corp shareholders can deduct corporate losses on their personal tax returns.”Easier to Raise Capital. As corporations, S-corps can raise capital by selling stock. Though they’re permitted to issue common stock only, they still have more flexibility to raise capital on favorable terms than sole proprietorships and partnerships.Greater Legitimacy. Like C-corps, S-corps are incorporated entities, with all the legitimacy that entails. However, S-corps aren’t ideal for institutional investors, so you may need to reincorporate down the line before seeking outside equity funding.Cons of an S CorporationSize of Ownership Class Is Limited. S-corps can’t have more than 100 individual (human) shareholders. If you need to raise lots of capital from a wide investor pool, C-corp status is a better fit.Potentially Expensive to Incorporate and Operate. Like C-corps, S-corps are expensive and cumbersome to incorporate. They have high ongoing operating costs and burdens, such as the annual shareholder meeting requirement. And S-corp shareholders have to worry about another wrinkle: the annual Subchapter S election. C-corp shareholders can disregard that one.Reasonable Compensation Requirements. Since wage income is taxed at a higher rate than the “reasonable compensation” requirement, this raises S-corp shareholder-employees overall tax burden.Greater Record-Keeping and Regulatory Burden. Like C-corps, S-corps have greater record-keeping and regulatory burdens than sole props and partnerships. If the costs of increased compliance outweigh the benefits, a simpler structure is probably right for you.Shareholders Must Be U.S. Citizens. S-corp shareholders must be U.S. citizens. If you’d like to start a business with noncitizens living in the U.S. on visas, you need to choose another structure.Limited Liability Company (LLC)Extant only since 1977, the limited liability company (LLC) model is the newest common business structure available to U.S. business owners. By some measures, it’s the most flexible.“LLCs are hybrids between corporations and a partnership,” says Toor. “LLC members have the same rights and limited liability of shareholders in a corporation, and LLCs themselves have the added benefit of being treated like a partnership for tax treatment.”Tax TreatmentAccording to the IRS, LLCs can be classified as corporations, partnerships, or sole proprietorships (disregarded entities) for tax purposes. The classification depends on the number of members (shareholders) and those members’ stated preferences (elections).By default, one-member (single-member) LLCs are treated as disregarded entities, with pass-through business income recorded on members’ personal tax returns (Schedule C or C-EZ). Single-member LLCs can file taxes using members’ Social Security numbers – no EINs required.LLCs with two or more members are treated as partnerships, regardless of the number of members. However, any LLC – including single-member LLCs – can elect to be treated as a corporation for tax purposes. And even disregarded entities are treated as separate corporate entities for certain tax purposes, such as employment and excise taxes.Filing and Regulatory RequirementsLike C-corps and S-corps, LLCs are required by law to file articles of incorporation with the appropriate state authorities. Operating agreements are strongly encouraged as well. According to the SBA, state law often leaves LLCs vulnerable to member losses – for instance, when a member dies or resigns from a multimember LLC, the LLC dissolves, and the remaining members must elect to form a new LLC if they wish to remain in business together. Capable business attorneys can draft detailed operating agreements that account for common (and not-so-common) eventualities like this.Going forward, LLCs’ regulatory burdens are lighter than S-corps’ or C-corps’. “The main difference between an LLC and S corporation is operational flexibility,” says Brian Thompson, a Chicago-based CPA, and business attorney. “LLCs are not subject to the requirement of an annual shareholders’ meeting or annual directors’ meeting.”By watching this video anyone can get the idea of forming an LLC for their small business.Pros of an LLCLimited Liability for Owners. Like S-corp and C-corp shareholders, LLC members are not personally liable for the enterprise’s debts and obligations.Lower Regulatory Requirements. Compared with S-corps and C-corps, LLCs have more manageable regulatory requirements. While articles of incorporation are required and operating agreements strongly encouraged, ongoing record-keeping and reporting requirements aren’t as onerous.Can Avoid Double Taxation. As pass-through entities, LLCs aren’t subject to corporate income tax.Can Request S-Corp Status for Tax Purposes. Like C-corps, LLCs can request S-corp status by filing a Subchapter S election within the first two months and 15 days of the tax year. Depending on the entity owners’ duties and employee status, this can lead to a more favorable tax situation for shareholders. For more information about how a Subchapter S election could affect your LLC’s tax status and your personal tax liability (state and federal), consult a local tax advisor.Shareholders Can Be Non-U.S. Citizens. Non-U.S. citizens can be shareholders in LLCs. This is an important advantage over S-corps, whose shareholder ranks are closed to noncitizens.Corporations and Other Entities Can Be Shareholders. Unlike S-corps, LLCs don’t restrict membership to human beings. Corporations, trusts, partnerships, and other legal entities can own shares in LLCs. This is a crucial consideration for more complex ventures, which frequently utilize LLC subsidiaries to manage financial and legal risk.Cons of an LLCMembers Are Considered Self-Employed. For tax purposes, LLC members are considered self-employed. Like sole proprietors, they’re on the hook for self-employment tax – the employer’s share of Medicare and Social Security tax.Potential for Greater Tax Liability. If your LLC income is taxed on a pass-through basis, you can avoid double taxation. However, if the enterprise is profitable, you may still find yourself subject to a higher marginal rate and greater overall tax burden.Final WordMost new U.S. enterprises choose one of these five common business structures. I’ve included a lot of information about each here, but if you’re serious about launching a business and need firm guidance on the right structure for your needs, I’d recommend speaking with a business attorney.And, one more thing. There’s a sixth type of business structure not mentioned here: the cooperative.According to the Small Business Administration, a cooperative “is a business or organization owned by and operated for the benefit of those using its services. Profits and earnings generated by the cooperative are distributed among the members, also known as user-owners.”Cooperatives are more commonplace than many consumers realize, especially in the food business. Hundreds of thousands of U.S. consumers regularly shop at grocery cooperatives – member-owned grocery stores that often specialize in organic or natural foods. Millions purchase food products from massive agricultural cooperatives, often without realizing it. Land O’Lakes, a popular consumer dairy brand, is a multibillion-dollar cooperative. Though less recognizable to the average grocery shopper, CHS is even larger, more diversified, and more influential.All that said, starting a cooperative is very difficult. I’ve been personally involved with two cooperatives and can attest firsthand to the sheer amount of manpower and force of will necessary to get one off the ground. In certain circumstances, a cooperative may be the best business structure for your needs, but it’s not a one- or two-person project.

Starting a business entails understanding and dealing with many issues legal, financing, sales and marketing, intellectual property protection, liability protection, human resources, and more. But interest in entrepreneurship is at an all time high.Understand the Commitment and Challenges Involved in Starting a Business:· Coming up with a great and unique product or service· Having a strong plan and vision for the business· Having sufficient capital and cash flow· Finding great employees· Firing bad employees quickly in a way that doesn’t result in legal liability· Working more than you expected· Not getting discouraged by rejections from customers· Managing your time efficiently· Maintaining a reasonable work/life balance· Knowing when to pivot your strategy· Maintaining the stamina to keep going even when it’s toughProtect Your Personal Assets by Forming the Business as a Corporation or LLC:· Always use the corporate name· Always use proper signature· Follow all corporate formalities· Make sure to keep funds separate· Make sure to keep taxation separate· All transactions made by the corporation should be clearly separate from any individual transactions.Come Up With a Great Name for Your Business· Avoid hard-to-spell names.· Don’t pick a name that could be limiting as your business grows.· Conduct a thorough Internet search on a proposed name.· Get a “.com” domain name (as opposed to “.net” or another variant).· Conduct a thorough trademark search.· Make sure you and your employees will be happy saying the name.· Come up with five names you like and test market the name with prospective employees, partners, investors, and potential customers.Focus on Building a Great Product—But Don’t Take Forever to LaunchWhen starting out, your product or service has to be at least good if not great. It must be differentiated in some meaningful and important way from the offerings of your competition‎.Everything else follows from this key principle. Don’t drag your feet on getting your product out to market, since early customer feedback is one of the best ways to help improve your product.Of course, you want a “minimum viable product” (MVP) to begin with, but even that product should be good and differentiated from the competition.Build a Great Website for Your Company· Check out competitor sites.· Start by sketching out a template for your site.· Come up with five or six sites you can share with your web site developer to convey what you like.· Be sure the site is search engine optimized (and thus more likely to show up early on Google search results).· Produce high-quality original content.· Make sure your site is optimized for mobile devices.· Make sure the site loads quickly.· Keep it clean and simple; visual clutter will drive visitors away.· Make sure you have a Terms of Use Agreement and Privacy Policy (and comply with the European GDPR rules).· Make the navigation bars prominent.· Obtain and use a memorable “.com” domain name.· Make the site visually interesting.· Make sure it’s easy for site visitors to contact you or buy your product.Perfect Your Elevator Pitch· Start out strong.· Be positive and enthusiastic in your delivery.· Remember that practice makes perfect.· Keep it to 60 seconds in length.· Avoid using industry jargon.· Convey why your business is unique.· Pitch the problem you are solving.· Invite participation or interruption by the listener—this shows they are interested and engaged.Make the Deal Clear With Co-Founders· How is the equity split among the founders?· Is the percentage of ownership subject to vesting based on continued participation in the business?· What are the roles and responsibilities of the founders?· If one founder leaves, does the company or the other founder have the right to buy back that founder’s shares? At what price?· How much time commitment to the business is expected of each founder?· What salaries (if any) are the founders entitled to? How can that be changed?· How are key decisions and day-to-day decisions of the business to be made? (by majority vote, unanimous vote, or are certain decisions solely in the hands of the CEO?)· Under what circumstances can a founder be removed as an employee of the business? (usually, this would be a Board decision)· What assets or cash does each founder contribute or invest into the business?· How will a sale of the business be decided?· What happens if one founder isn’t living up to expectations under the founder agreement? How will it be resolved?· What is the overall goal and vision for the business?· If one founder wants to leave the business, does the company have the right to buy back his or her shares? At what price?Obtain a Tax IDIn most instances, you will need to get a tax ID from the IRS for your company. This is also known as an “Employer Identification Number” (EIN), and it’s similar to a Social Security number, but for businesses. Banks will ask for your EIN when you open a company bank account. You can get an EIN online through the IRS website.Set Up a Good Accounting and Bookkeeping SystemYou will need to set up a bookkeeping/accounting system to keep track of your finances, income, expenses, capital expenditures, EBITDA, profit and loss, etc. This is important in order to understand your business’s cash flow situation and also for tax-filing purposes.Perform a Comprehensive Reference Check Before You Hire an Employee· Verification of job titles and dates of employment· Verification of educational degrees and dates of attendance at schools· Verification of starting and ending salary· Verification of prior job role and responsibilities· Inquiry as to why the applicant left the prior employer· Conversations with prior supervisors as to the applicant’s strengths and weaknesses· Inquiry as to the applicant’s ability to get along well with other employees and customers· Inquiry as to the applicant’s ability to take on the new role· Inquiry as to punctuality or absenteeism issues· Reference checks with other people not listed by the applicant as a referenceUse a Good Form of Employee Offer Letter or Employment Agreement· The job title and role of the employee· Whether the job is full time or part time· When the job will commence· The salary, benefits, and any potential bonuses· Whether the position is “at will” employment, meaning either party is free to terminate the relationship at any time without penalty (although employers may not terminate employees for legally prohibited reasons, such as for age discrimination or retaliation from sexual harassment allegations, etc.)· Confirmation that the “at will” agreement may not be changed unless signed by an authorized officer of the company· Confirmation that the employee will need to sign a separate Confidentiality and Invention Assignment Agreement (described below)· If the company chooses, a statement that any disputes between the parties will be resolved solely and exclusively by confidential binding arbitration (also discussed below)· Any stock options to be granted to the employee and the terms of any vesting (details usually laid out in a separate Stock Option Agreement)· The supervisor to whom the employee will report· Protective language stating that the offer letter constitutes the entire agreement and understanding of the parties with respect to the employment relationship, and that there are no other agreements or benefits expected.Make Sure All Employees Sign a Confidentiality and Invention Assignment Agreement·The employee may not use or disclose any of the company’s confidential information for their own benefit or use, or for the benefit of others, without authorization.· The employee must promptly disclose to the company any inventions, ideas, discoveries, and work product related to the company’s business that they make during the period of employment.· The company is the owner of such inventions, ideas, discoveries, and work product, which the employee must assign to the company.· The employee’s employment with the company does not and will not breach any agreement or duty that the employee has with anyone else, nor may the employee disclose to the company or use on its behalf any confidential information belonging to others.· Upon termination of employment, the employee must return any and all confidential information and company property.· While employed, the employee will not compete with the company or perform any services for any competitor of the company.· The employee’s confidentiality and invention assignment obligations under the agreement will continue after termination of employment.· The agreement does not by itself represent any guarantee of continued employment.Consider the Steps You Should Take to Protect Your Intellectual Property· Patents· Copyrights· Trademarks· Service Marks· Trade Secrets· Confidentiality Agreements· Confidentiality Agreement for Employees and Consultants· Terms of Service and Privacy PolicyBecome a Strong SalespersonIf the business is to become successful, you must become a great salesperson. You are going to have to learn how to “sell” your business not only to customers but also to prospective investors and even to potential employees.Understand Financial Statements and Budgets· What are the company’s three-year projections?· What are the key assumptions underlying your projections?· How much equity and debt has the company raised, and what is the capitalization structure?· What future equity or debt financing will be necessary?· How much of a stock option pool is being set aside for employees?· When will the company get to profitability?· How much “burn” (losses) will occur until the company gets to profitability?· What are your unit economics?· What are the factors that limit faster growth?· What are the key metrics that the management team focuses on?Market Your Business Like Crazy· Learn the fundamentals of SEO (search engine optimization) so that people searching for your products and services online might find you near the top of search results.· Use social media to promote your business (LinkedIn, Facebook, Twitter, Pinterest, etc.).· Engage in content marketing by writing guest articles for relevant websites.· Issue press releases for any significant events.· Network continually.Use Consultants and Freelancers to Supplement Your TeamAt the early stages of your startup, you will likely want to have a small employee team to minimize expenses. A good way to fill in for specialized expertise is to use freelancers or consultants.That way, you avoid taking on employee costs and benefits payments. And there are a variety of sites that can help you access freelancers, such as Freelancer.com, Guru.com, and Upwork.com.Have a Great Investor Pitch DeckPitch Deck Do’s· Do include this wording at the bottom left of the pitch deck cover page: “Confidential and Proprietary. Copyright by [Name of Company]. [Year]. All Rights Reserved.”· Do convince the viewer of why the market opportunity is large.· Do include visually interesting graphics and images.· Do send the pitch deck in a PDF format to prospective investors in advance of a meeting. Don’t force the investor to get it from Google Docs, Dropbox, or some other online service, as you are just putting up a barrier to the investor actually reading it.· Do plan to have a demo of your product as part of the in-person presentation.· Do tell a compelling, memorable, and interesting story that shows your passion for the business.· Do show that you have more than just an idea, and that you have gotten early traction on developing the product, getting customers, or signing up partners.· Do have a soundbite for investors to remember you by.· Do use a consistent font size, color, and header title style throughout the slides.Pitch Deck Don’ts· Don’t make the pitch deck more than 15-20 slides long (investors have limited attention spans). If you feel you need to add more information, include it as an appendix.· Don’t have too many wordy slides.· Don’t provide excessive financial details, as that can be provided in a follow-up message.· Don’t try to cover everything in the pitch deck slides. Your in-person presentation will give you an opportunity to add and highlight key information.· Don’t use a lot of jargon or acronyms that the investor may not immediately understand.· Don’t underestimate or belittle the competition (and never say “we don’t have any competition”).· Don’t have your pitch deck look out of date. You don’t want a date on the cover page that is several months old (that is why I avoid putting a date on the cover page at all). And you don’t want information or metrics in the deck about your business that look stale or outdated.· Don’t have a poor layout, bad graphics, or a low-quality “look and feel.” Think about hiring a graphic designer to give your pitch desk a more professional look.Drive Traffic to Your Website· Pay Google, Bing, Yahoo, or other search engines to send you traffic (such as through the Google Adwords program).· Build a great site with lots of high-quality, original content that is search engine optimized.· Have a smart social media plan to drive traffic from Facebook, Twitter, LinkedIn, and other free social media sites.· Get links to your site from high-quality sites.Make Sure Someone Hasn’t Already Invented Your Great New Idea· Do a Google search on the keywords associated with your invention.· Do a search online of the U.S. Patent and Trademark Office at United States Patent and Trademark Office.· If nothing comes up and you want to get a patent for your idea, hire a patent lawyer.Don’t Go Overboard on a Business PlanIt’s useful to come up with a business plan to think through what you want to do for the development of the product or service, marketing, financial projections, and more. And you should then get input from trusted business and finance advisors. But don’t go overboard with a 50-page business plan.Secure Capital to Finance Your Business· Personal funds· Credit cards· Friends and family· Angel investors (see Angel Investing: 20 Things Entrepreneurs Should Know)· Crowdsourcing sites such as Crowdfund Innovations & Support Entrepreneurs and Kickstarter· Bank loans/SBA financings/online lenders· Venture capitalists· Equipment loan financingDetermine Which Permits, Licenses, or Registrations You Will Need for Your Business· Permits need for regulated businesses (aviation, agriculture, alcohol, etc.)· Sales tax license or permit· Home-based business permits· City and county business permits or licenses· Zoning permit· Seller’s permit· Health department permits (such as for a restaurant)· Federal and state tax/employer IDsSet Up Appropriate Books and Records for Your Business· Financial statements (P&L, balance sheet, cash flow)· Employee records· Board and stockholder minutes and consents· Stock and options ledger· Tax filings and records (federal, state & local income, sales and property taxes)· Secretary of State filings (Certificate of Incorporation, annual filings, etc.)· Invoices & contracts· Bank accounts· Creditor recordsProperly Insure Your StartupWhile shopping for insurance, you will want answers to these types of key questions:· What are the deductibles?· Are the coverage limits high enough?· What items or occurrences are excluded from coverage?· Are there any gaps in the coverage?Here is a list of the types of insurance that may be appropriate for your business:· General liability insurance· Product liability insurance· Professional liability insurance· Property insurance· Worker’s compensation insurance· D&O (directors & officers) insurance· Health insurance for employees· Business interruption insurance· Commercial auto insurance· Data breach/cybersecurity insurance· Key man life insuranceDetermine How to Divide Equity Among the Startup’s Co-Founders· The relative value of the contributions of the co-founders· Vesting dependent upon continued participation in the business (you don’t want to give away 25% of the company to someone who leaves after a few months)· The amount of time to be committed to the business· The cash compensation to be paid as an employee· Whether the co-founders will be contributing cash as an investment in the business· Whether one person wants to maintain control over decision-makingUnderstand These Key Points About Seeking Venture Capital Financing· Specific industry sectors (software, digital media, semiconductor, mobile, SaaS, biotech, mobile devices, etc.)· Stage of company (early-stage seed or Series A rounds, or later-stage rounds with companies that have achieved meaningful revenues and traction)· Company location (e.g., San Francisco/Silicon Valley, New York, etc.)Pay Attention to Your Business Contracts· Describe all obligations they are expected to fulfill.· Describe all obligations they expect the other party (or parties) to fulfill.· Limit any liabilities.· Set parameters, such as a time frame, in which the terms of the contract will be met.· Set terms of a sale, lease, or rental.· Establish payment terms.· Clearly establish all of the risks and responsibilities of the parties.The key contracts that a startup should have as its own form of “standard contract” include:· Sales or service agreement· License agreement· Offer letter to employees· Consulting agreement with any independent contractors (you want to make sure that you will own the intellectual property rights for anything they develop for your business)· Confidentiality and Invention Assignment Agreement for employees and independent contractors· Non-disclosure agreementIf You Plan to Lease Office Space for Your Business, Focus on These Key Issues· Length of lease term· Tenant improvements· Rent and rent escalations· Repairs, improvements, and replacements· Assignment and subletting· Try to avoid one-sided lease provisions.· Consider using a tenant brokerThoroughly Research Your Competition· Who are the company’s principal competitors?· What traction have those competitors obtained?· What gives your company the competitive advantage?· Compared to these other companies, how do you compete with respect to price, features, and performance?· What are the barriers to entry in your market?If You Are Seeking Angel Investing Financing, Know These Important Points· The quality, passion, commitment, and experience of the founders· The market opportunity being addressed and the potential for the company to grow to become very big· A clearly thought out business plan and early evidence of early business traction· Interesting intellectual property or technology· A reasonable valuation for the company· The likelihood of the company being able to raise additional financing in the future if progress is madeAngel investors will want to initially see the following from a startup:· A clearly articulated elevator pitch for the business· An executive summary or investor pitch deck· A prototype or working model of the company’s product or service· Early adopters, customers, or partnersThere are a variety of ways to find angel investors, including:· AngelList· Venture capitalists· Investment bankers· Lawyers· Accountants· Other entrepreneurs· Crowdfunding sites like Kickstarterand IndiegogoConsider Adopting a Stock Option Plan to Attract and Motivate Employees· XYZ, Inc., hires employee John Smith.· As part of his employment package, XYZ grants John the option to acquire 80,000 shares of XYZ’s common stock at 25 cents per share (the fair market value of a share of XYZ common stock at the time of grant).· The options are subject to a four-year vesting period with one-year cliff vesting, which means that John has to stay employed with XYZ for one year before he gets the right to exercise 20,000 of the options. The remaining 60,000 options then vest at the rate of 1/36 a month over the next 36 months of his employment.· If John leaves the company or is fired before the end of his first year, he doesn’t get any of the options.· After his options are “vested” (become exercisable), he has the option to buy the stock at 25 cents per share, even if the share value has gone up dramatically.· After four years of continued employment, all 80,000 of his option shares are vested.· XYZ becomes successful and goes public, and its stock trades at $20 per share.· John exercises his options and buys 80,000 shares for $20,000 (80,000 x 25 cents).· John turns around and sells all 80,000 of his shares for $1.6 million (80,000 x the $20 per share publicly traded price), making a huge profit of $1,580,000.Focus on Offering Exceptional Customer ServiceCompanies such as Zappos and Virgin America became hugely successful because they focused on providing excellent customer service and support. You want your early customers to give referrals and sing your praises to their friends and colleagues.Hire an Experienced Startup Attorney· Incorporate· Draw up contracts with any co-founders· Prepare key agreements for the business· Set up a stock option plan for employees· Guide you through potential HR landmines· Prepare protective offer letters to prospective employees· Help you negotiate terms with prospective investors· Limit your potential legal liabilities· Protect your ideas and inventions (through copyrights, patents, and non-disclosure agreements)Get Comfortable With Public SpeakingThe ability to communicate effectively can be critical to landing customers, inspiring employees, and pitching to investors to raise capital. Most people are not very good at public speaking and many are even afraid of it.You must strive to overcome this fear. Consider working with a public speaking or business coach to improve your public speaking skills.There was a ton of information in this article, so if you have any questions, just leave me a comment below, please do upvote, share and support.Thank you