Step 1 Think of an idea. You probably have already done this. Most people have at least had a daydream of owning their own small business, what’s yours?
Step 2 Form a business plan. You need to plan how you will open your business, how you will market your business, who you will market to, whether there is a market for your business, and any other conceivable aspect to operating your small business. This is the most important step. Your plan will guide you through your company’s early childhood.
Step 3 Determine how to finance your business. Consider how much money will be needed for the first 6 to 12 months of your business. Most people who start a small business finance it from their own savings, or through family and friends. You may also be able to take out a personal loan. This is the most difficult aspects of starting your business, but don’t let it discourage you.
Step 4 Determine how to structure your small business. Most small businesses are either a Sole Proprietorship or a General Partnership. Another option becoming very popular is a Limited Liability Company (LLC). Sole Proprietorship works well for any business that is owned an individual. General Partnership is for a small business with two or more owners. The advantage of an LLC over the previous two is lowered liability for the ownwer(s).
Step 5 Register your business. In Wisconsin businesses are registered by the Secretary of State. You can fill out the paperwork at the local level, usually at the local Court House. For basic company structures, a simple form and filing fee, is all that is needed. Contact your local County Clerk’s office or Chamber of Commerce for information on how to register in Wisconsin.
Step 6 Open a bank account for your small business. A business savings account is good to have since it will generate interest, although a business checking account is your main need, in order to pay expenses. Contact several banks in your area to check out the fees and requirements they have for a business account. Use this information to decide which bank is best for your business.
Sounds too easy? Well maybe it is and maybe that is one of the reasons so many new businesses fail. Don’t let this discourage you though. If you really want to start a business and you really want to succeed, Spend a lot of time working out theses five steps on paper, especially the first three. If after all that work, you still want to start a business of your own, go for it and good luck.
Tot volgende week kinderen, Papa DonderVogel, signing off.