5 Steps to Launch Your Business in the New Year

Is one of your New Year’s resolutions is to finally launch that new venture? While launching a business may seem overwhelming, there are really just a few steps that you must do in order to get your idea off the ground. While there may be some unique requirements for businesses in certain industries – this is a great foundational list to get you going.

Step 1: Do Your Research

So, you have this great idea for a business – that’s fantastic! Now, you need to do a little due diligence to make sure your idea will hold water in the real world. First, you need to be sure that your idea/product/service fulfills a need that the current market actually wants. You can do this though focus groups, trial and error, or detailed analysis. If you’re not sure where to test the theory – try in a Facebook or LinkedIn group. Finding several objective third parties will help to give you the reality check that you need before starting the business.

Step 2: Write Your Business Plan

Once you’ve established that your business idea is valid – you’ll need to make a plan to get it to the market. While writing out a business plan is typically not every entrepreneur’s favorite aspect of starting a new venture, it is a necessary one. If you intend to seek outside funding, you’ll need an in-depth traditional business plan. If you’re bootstrapping, a simple business plan will do to get you started. The key here is to make sure that your business plan is something you can build on, as you’ll be updating frequently as your business grows and you learn more about your industry.

Step 3: Seek Funding or Set Your Budget

When it comes to funding a business in today’s market – you have several options. If you are seeking outside funding, start that process sooner rather than later. If you self-funding (or bootstrapping) your business, you need to have a clear-cut budget to avoid losing money. Either way, understanding exactly how much you need to start and run your business in the first year is a key step to success.

Step 4: Check Your Legal Requirements

In order to legally operate as a business, you’ll have to do a little paperwork. Requirements for starting and operating a business vary by state, and industry – so you’ll want to check you’re your local offices to make sure that you are compliant. The first step is to choose and register your business name. This will also require you to choose a business structure (LLC, sole proprietorship, Corporation, etc.). If your state requires licensing and insurance, you’ll want to set that up before you open your doors (online or in person).

Once you have that established, you can visit your state tax commission and IRS.gov to obtain your Federal and State Tax ID numbers (EIN). Even if intend to operate as a sole proprietor/1099, or if you do not plan to hire employees right away, you’ll want an EIN. This enables you to complete client tax documentation without releasing your social security number.

Finally, consider whether you will be creating any trademarks or copyrights for your business name, products, and so on. For more information about what qualifies for these services, and what you need to do to protect your intellectual property, visit the United States Patent and Trademark Office.

Step 5: Set Up Your Banking & Accounting Systems

Now that you’ve established your business name, structure, plan, and funding strategy – you need to create your infrastructure. Start with a business bank account, and an accounting system. If you are familiar with general business accounting, you can choose your software (like Quickbooks, or something similar) and manage your accounting on your own. However, at some point, you’ll want to hire an accountant or accounting firm to help you manage your books and avoid costly tax mistakes.

While every business will have different requirements, these are the basic steps to getting any business started. Always be sure to check with your local Small Business Administration to help you with state-specific requirements along the way.