All great businesses begin with an idea. Great ideas address current needs and reflect an understanding of demand consistency and supply capability. In order to enjoy the greatest success, entrepreneurs should focus on a few key elements before launching their startup business.
The Business Plan
Revolutionary spirits inspire imaginations, innovations, and inventions, and this leads many people to dream about starting businesses of their own. Dreaming is free, but launching headon into a project without a clear sense of direction can be very costly.
Truly savvy entrepreneurs and corporate veterans alike stand behind a well-crafted business plan. Carefully researched, designed, and executed, these plans map the path a business plans to follow and its expected achievements for the first 3-5 years.
Among the most crucial components of any business plan are the executive summary, company description, and market analysis. These portions help potential investors to understand both the vision and the scope of the startup business. Their value extends well beyond the financial support they may help to generate, though, as excellent business plans help to prove the value of the product.
To avoid a quagmire of tax problems later, many of which could lead to a shutdown where a startup might have flourished, it is best to make sure all required taxes are being cut from the beginning.
The Employer Identification Number (EIN), also known as the Federal Tax Identification Number, is required of all businesses. Applications for EIN are received by the Internal Revenue Service (IRS) and can be applied for online.
Most states require registration of a State Employment Identification Number (SEIN). This number helps the state collect personal income tax.
Every startup business employing 50 or more workers will be required to make provisions for insurance. Smart business owners will familiarize themselves with the Affordable Care Act (ACA) as well.
While insurance helps to keep employees healthy, workers’ compensation insurance helps to ensure the company will survive should a large personal injury settlement need to be reached. The costs associated with such injuries can be devastating to underinsured companies.
Start Planning Now
If the time is right for a specific product or service, it does not pay to wait. Approaching a great idea sensibly is the first step to successful business launch.