8 Decisions to Be Made Before Starting a Business

Starting a Business

Starting a Business

Starting a business is a significant decision on its own, but it’s only the first step in a journey of a thousand choices you’ll make as an up-and-coming entrepreneur. Answering a few of these questions in advance can give you the roadmap you need to keep your new business up on two feet. 

How you’ll fund the business

Unless you’re using your own money to fund your business, you’ll have to figure out where you’ll find the funds to open the doors. Some entrepreneurs turn to crowdfunding, microloans, or asking family and friends. Others will use a fast and easy business loan for quick cash, affordable interest rates, and realistic terms. Whichever method you choose, ensure that you have a repayment plan in place. 

The type of business you’ll open

Most small businesses either offer services or sell products. You’ll have to decide what you plan to do and how you plan to do it. As you decide, you can also choose if you want a brick-and-mortar office or a digital storefront.

Where you’ll open your business

If you decide to open a store or office, you’ll have to find real estate that fits your needs. This decision can be tricky, especially since most communities have many vacant properties at different price and quality points. 

Will you pay yourself?

Starting a business takes time, so many business owners need to decide whether to take a paycheck or put that money back into the company. Your decision could come down to what type of funding you choose to use, as you might have to pay that back before you pay yourself. 

Do you need employees?

When starting a business, you might be able to go it alone for a while. Depending on the type of business you open, you might need employees immediately. You’ll have to decide how many employees, how much to pay them, and how many hours you’ll need them. 

How you’ll market your business

Unless you locate your business in a busy traffic corridor, you’ll need to market it. The big question is: How do you plan to do that? Some entrepreneurs hire a marketing company with a proven track record, while others choose to go it alone and work with free marketing through social media. 

What legal requirements you need to meet

Most businesses must meet state or federal legal requirements. Before you open your office, you’ll need to know what type of licenses and permits you’ll need. If you’re selling a product, you’ll have to collect sales tax and know where to send it. 

If you’re hiring employees, you’ll have to take care of the legal requirements for them, both in your community, state, and the federal government. 

What legal structure your business will be

Are you opening an LLC? What about a sole proprietorship? You’ll need to choose a business structure that provides legal protection for your personal and business assets. 

Wrap up

The decisions you make will affect how you organize and start your business. It is easier to make these decisions before you open rather than after, as you’ll be busy trying to turn a profit. 

Related posts