Opening a new business is fun and exciting. You choose a logo, products, and new supplies and enjoy the act of creating something new. Some details are a little less exciting but absolutely fundamental to the opening and operation of your endeavor — Reliant Funding shares some tips and resources you can use below.
Business Formation
When opening a new business, you must take a few important steps. For your business to operate, it must be a legal entity, and you must secure any necessary funding. These tasks aren’t the most fun but are definite requirements.
Organization
When registering your business, you have several choices for how it’s organized. For most small businesses, forming a limited liability company (LLC) is the best bet. You can enjoy tax benefits and less paperwork than a corporation, and formation is simple. You can handle the paperwork yourself, but each state has its own laws regarding business formation, so consider hiring a lawyer, or skip the legal fees and hire a formation service instead.
Financing
Once your business is official, you need to start setting things up. This takes capital. You can contact your local Small Business Administration office for information on grants and incentives, or consider getting a small business loan to fund the start-up. Depending on the scope of your business, you can also choose investors who fund you now in exchange for some profit sharing or other benefits later.
Accounting
Accounting is one of the most important parts of opening a new business. It’s also one of the most easily overlooked in the beginning. If you start out with solid accounting practices, you’ll be prepared as your business grows.
Bookkeeping
Keep a record of all money spent and earned by your business. If you’re not familiar with how to track these accounts, consider hiring a bookkeeper. If you want to do it yourself, consider bookkeeping software that helps keep everything straight.
Invoicing
The biggest function of your business is to make money, so be ready for invoicing. Once you sell a product or service, set clear deadlines for payment, and send invoices promptly. You can use an online invoice maker for simple custom invoices with your logo, company name, brand colors, and other information. Include your payment options, and keep them as varied as possible to make it easy for your customers to pay.
Payroll
If you’re hiring employees from the start, payroll is an important consideration. Even if you use a professional to provide payroll services, you’ll need to determine salary or hourly rates along with a way for hourly employees to track their time. Be sure you’re withholding the appropriate amounts for taxes and insurance as required by federal, state, and local guidelines.
Working Your New Business
Once you’ve opened a new business entity, and gotten your bookkeeping, invoicing, and payroll procedures set, you can now start preparing your business to open. Taking this new step can be scary but exciting, and the more prepared you are beforehand, the better you’ll feel. Get started with support and a small business loan from Reliant Funding, and you’ll be on your way to success.
