Business Analyst Finance Domain Process Knowledge
How to Start a Small Business and Obtain Business Financing
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Going into business for yourself is an American tradition as old as the nation. If you have an entrepreneurial bent, chances are, you've considered starting a business. Since the economic recovery from the recession of 2008, millions of Americans have started businesses in every conceivable industry. According to Forbes, the number of businesses that start each month is in the realm of 543,000.
Americans are highly innovative and the trend towards entrepreneurship in the economy illustrates this. A common challenge entrepreneurs face, however, is not knowing where to start. In addition, you might not know how to get financing to fund your business. This guide will show you how to get started and where to find the financing your business needs.
What Does It Take to Start a Business?
Starting a business in many states is a simple process that takes less than a couple of weeks. The legal process of incorporating a business is streamlined so that entrepreneurs can select from common options.
To legally establish your business, you will need to register with the Secretary of State office in your state. This creates your business tax identity so you can pay income taxes and other dues.
Many entrepreneurs choose the easiest path, which is to become a sole proprietor. A sole proprietor is an individual who is identified for tax-filing purposes with the business he or she runs. Advantages to the sole proprietorship model include ease of formation and that the entrepreneur does not need to take on partners.
On the other hand, more complex business structures can give you greater access to capital. These include Limited Liability Corporations (LLCs), private corporations and public corporations. The regulatory and financial reporting requirements are higher with these business types. However, they enable your business to take on more partners and investors.
6 Business Ideas That Are Easier To Start For New Entrepreneurs
Business ideas that require large amounts of capital and equipment are usually tough for new entrepreneurs. In the beginning, it helps if you go with a simpler idea that you can quickly turn into a success. As you become a more seasoned entrepreneur, you will be able to tackle even more challenging ideas.
Some good ideas to start a business for the first-time entrepreneur include:
- Landscaper - Tidy and trim people's yards, including lawns, hedges, plants, as well as other foliage.
- Photographer - You can take classes on professional photography then contract yourself to take photos at people's weddings, birthdays and other events.
- Website Developer - If you know programming, you can become a web development agency, developing websites for clients.
- Pet Sitting - This is a low start-up cost business where you take care of other people's pets for a fee.
- eBay Seller - You can make a good living buying and selling goods on eBay.
How To Arrange Financing For Your Business
Finding capital is a critical part of making your business work, particularly if it requires large amounts of financing.
The best option is having a low-cost business which you can fund yourself out-of-pocket. If, however, this is not enough, the next best option is to take out a business loan. Approach your local banks and present your business plan and credentials. Your bank will need to see proof that your business works, either through a past track record or current business income.
Other options for financing include friends, family, as well as external investors that include private equity and venture capital.
Avoid These Common Mistakes of Failed Businesses
Each year, countless businesses fail. To be successful in your venture, you'll want to avoid common mistakes of failed businesses. Not preserving positive cash flow can lead to failure. Businesses run on cash flow. Make sure you are collecting your billings on time so you can pay your suppliers and keep doors open. In addition, hire only people of integrity and avoid sloppy hiring.
Marketing and Promoting Your Business to Customers
Customers are the lifeblood of all business. To reach them, you need to invest in advertising, social media, Search Engine Optimization (SEO), and other marketing activities. A popular form of marketing you can carry out regardless of budget is content marketing. You can start a blog that showcases your products and brings customers to you. When it comes to marketing, the more you put in, the more you get back.
Business Analyst Finance Domain Process Knowledge
Source: https://www.life123.com/article/how-to-start-a-small-business-and-obtain-business-financing?utm_content=params%3Ao%3D740009%26ad%3DdirN%26qo%3DserpIndex