You've Got the Expertise: Now Take the Next Step and Start a Business

by: Adam Greene, CPA

You've cut your teeth for several years in your chosen field, and now you feel fairly certain that you know the inner workings of how to run a business. Congratulations, you may feel the itch that many entrepreneurs feel at some time in their lives. It's that nagging feeling that maybe you want to be your own boss, create a business model that succeeds, and then retire early after your company has a fantastic run for 20 to 30 years. If you're ready to take the leap into business ownership, but you feel a bit tentative because this is something totally new, take into account these tips that can help your company hit the ground running.

Image courtesy Taro the Shiba Inu | Flickr

Planning and More PlanningThe first thing you need is a business name. It should be catchy and stand out from the crowd. This is the brand that everyone will know you by, so choose carefully.

The next thing you need to do is plan your business model by asking and answering several questions. What products or services do you intend to sell? How many employees do you need? What about office space? How much money do you need to start? Most importantly, ask yourself how much money you want to make.

Planning and More PlanningWrite these questions down, and then answer them realistically. Then formulate your business plan. Start with a one-page plan that gives you a big-picture view of your overall business model. Develop the vision for your company by noting your overall goal. Do you want to become the largest plumbing contractor in the tri-state area, or do you want to have a small corner store that sells used children's clothing? Your vision is totally up to you because that helps achieve your goals.

List your goals that you plan to achieve within your lifetime. Do you want to retire at 55? Do you want to become independently wealthy? Do you want to sell your business at some point? What's the endgame?

Create a simple action plan that gets the ball rolling. Your major goals have to start with baby steps. List the practical strategies you need to reach your goals 5, 10, and 20 years down the road.

FinancingNow that you have a plan, test the financial waters. Small business loans, either backed by the federal government or by a traditional lender, give you seed money to start your enterprise. Each loan requirement is different, but you must have some kind of idea as to how much money your business needs to stay afloat on a regular basis. Financiers may also require you to do market research to determine whether your products or services can sell in your particular area.

Determine overhead costs, incidentals, insurance coverage, and money needed to hire employees. Lenders usually request a detailed business plan as to how your company will make money because your profits are how you repay the loan. Different lenders have varied requirements, so do your homework and fill out paperwork thoroughly.

Legalize Your CompanyOnce you have financing and investment capital, it's time to legalize your company. Decide what kind of business entity you want, ranging from a corporation or limited liability company to a partnership or sole proprietorship. Each state has different legal requirements, therefore might want to discuss your options with an attorney licensed in your state.

This also means applying for business licenses within your county and city where the business exists, which means paying fees. File for a tax identification number, or employer identification number, with the Internal Revenue Service and your state's department of revenue. Tax ID numbers are usually free.

Develop a Web PresenceBuy a Web domain and create your company's logo and website. If you don't know how to create and maintain a website, hire someone to do it for you. There are plenty of businesses that specialize in creating and maintaining websites. Connect your social media accounts to this website and start sharing the good news of your startup as soon as possible.

Connect With OthersThroughout this entire process, and even before you take a big step into entrepreneurship, connect with people who have started and maintained successful businesses. This could be the owner of a business where you once worked or a mentor in the community whom you admire. Get to know people with inside information on the day-to-day details of running a business and maintain these relationships. Entrepreneurs are just like you -- they were scared once, and they can help alleviate your fears of starting something new and exciting.

Another important connection to make is with a certified public accountant. A CPA can help you with every step of starting a business, from writing a plan and dealing with financial issues to what you can expect at the bank and how you can make tax time easier. A great CPA also gives you detailed tips regarding the best way your business can make money.