The Basics of Starting a Business
Updated: Oct 20, 2021
Starting a business can seem like a daunting task. There are so many questions to answer: what type of business do I want? How much money will it cost? What kind of work will I need to put in every day? The basics of starting a new business can help you answer these questions and more. In this blog post, we'll go over the basics of starting your own company, from setting up your accounting system to choosing an office space that captures your brand's personality.
Type of Businesses
There are two types of businesses: sole proprietorship and corporation. A sole proprietor owns the company but doesn't have liability protection if they can't pay back creditors or hire an attorney to represent them in civil lawsuits. Sole Proprietorships don't offer as much financial stability for you or your employees because there is no separation between the company and your personal life.
A corporation is created when a business owner buys shares of stock, which are then traded on the market for other stores or used to purchase goods and services from another business entity in exchange for cash. Most corporations have two classes of stock: common and preferred. Common shareholders get an equal share of the company's profits, regardless of how much they invest, and are responsible for all lawsuits filed against the company. Preferred shareholders get a fixed rate of return on their investment.
Different types of businesses require different accounting systems: sole proprietorships use cash books to keep track; partnerships need a general ledger that divides income among partners according to a predetermined agreement, and corporations need to set up a double-entry accounting system that reconciles debits and credits.
When choosing an office space, think about what type of business you want to run. For example, if you'll be hosting events and meeting with clients regularly, it's best to choose a location in the city center near your target market.
There are many more basics when starting a new company; this blog post has just scratched the surface. To learn more about starting your own business, explore our website for in-depth articles and helpful resources on entrepreneurship basics.
Key Points:
Starting a company requires you to make decisions about the basics of what type of business, how much money it will cost, and whether or not there are other people involved.
Businesses need to have an accounting system tailored for their industry; paying close attention to these basics helps ensure your company's success.
When choosing an office space, consider where your target market is and how often you'll be hosting events or meeting with clients.
Many basics come into play when starting a new company; exploring our website can help provide in-depth articles about entrepreneurship basics to learn more."
The Basics of Starting a Business
Get a domain name that corresponds with the address of your website. Use something easy and catchy like googlesecretsites.com or yellowpagesbusinessesnearyou.com, but avoid being too generic if you can help it
Design a logo and business cards that match your personal brand's personality and organize how much money it will cost to start up the company.
Create a marketing plan with an outline of steps you'll take so your business can be successful. Set up social media accounts for online presence two weeks before opening day (consider creating a website with contact information and pictures of products).
Select which product or service you are going to sell, as well as how it will be sold (e.g., online store, in person at events).
Create pricing structures so customers know what they can expect to pay for your products/services. Set up a system for tracking sales/ expenses and taxes.
Register with the IRS to get an Employer Identification Number (EIN). Monitor how much money you make from each sale, including any deductions for things like shipping costs, if applicable. Keep track of inventory levels so that you can adjust your prices or order more of a product if it's in short supply. Conduct inventory/financial audits every once and a while to ensure you're on the right track with expenses, sales, and taxes.
Remember that starting any new business comes with some risks; review basics, so they are less likely to happen (review basics of running a successful business).
Keep in mind the basics of starting any type of company-- research the basics of doing a successful business and learn them.
Put what you're going to sell on flyers and post them around town.
Create a website with your contact information, pictures of the products, and prices (register as an employer by getting EIN). Design logo for business cards that match personal brand's personality. Create a marketing plan outlining steps needed to be successful. Select which product/service to sell, how it will be sold.
Create basics for making sure your business is successful (e.g., pricing structures, tracking sales and expenses). Remember that starting a new company comes with some risk-- reviewing these basics is less likely to happen (review basics of running a successful business). Lastly, the basics of starting any type of company will entail the basics.
Research basics and learn them, so you are prepared to start a successful business-- they're available for anyone who wants to put in the time it takes (review basics of running a successful business).
Put on flyers, post around town what your product is; create a website with contact information, pictures of the products, prices (register as an employer); design logo for business cards that match your personal brand's personality. Design basics for making sure you can be successful in your new company. Remember basics come with some risk-- review basics and learn them to make starting a new company less risky.
Research basics and understand how they impact the success of a company.
Keep basics in mind when starting any new business-- they are for anyone willing to put in the time it takes (review basics of running a successful business).
Put the product on flyers and post them around town; create a website with contact information, pictures of products, prices (register as an employer); design logo for business cards that match your personal brand's personality; create basics of making sure your new company is successful. Remember, basics come with some risk-review basics to make it less risky when starting any company.