Lila & Associates LLC
Steps To Starting A Small Business
Updated: Oct 4, 2017
Thinking about starting a small business?
Market research will help you understand your customers, familiarize yourself with the competition and get to know what people are prepared to pay for your product or service. Your research plan should spell out the objectives of the research and give you the information you need to either go ahead with your idea, fine-tune it or take it back to the drawing board.
Make A Plan
You need a plan in order to make your business idea a reality. A business plan is a blueprint that will guide your business from the start-up phase through establishment and eventually business growth, and it is a must-have for all new businesses.
The good news is that there are different types of business plans for different types of businesses.
Plan Your Finances
Financial planning is essential for starting a business. Starting a small business doesn't have to require a lot of money, but it will involve some initial investment as well as the ability to cover ongoing expenses before you are turning a profit. Put together a spreadsheet that estimates the one-time startup costs for your business (licenses and permits, equipment, legal fees, insurance, inventory, grand opening events, property leases, etc.), as well as what you anticipate you will need to keep your business running for at least 12 months (rent, utilities, marketing and advertising, production, supplies, travel expenses, employee salaries, your own salary, etc.)
Determine Legal Structure
Sole Proprietorship- Is someone who owns an unincorporated business by himself or herself. However, if you are the sole member of a domestic limited liability company (LLC), you are not a sole proprietor if you elect to treat the LLC as a corporation.
Partnership- Is the relationship existing between two or more persons who join to carry on a trade or business. Each person contributes money, property, labor or skill, and expects to share in the profits and losses of the business.
Limited Liability Company (LLC) - Is a business structure allowed by state statute. Each state may use different regulations, and you should check with your state if you are interested in starting a Limited Liability Company.
Corporation- A company or group of people authorized to act as a single entity (legally a person) and recognized as such in law.
Register Business Name
The Texas state government makes it easy to register your business name. After you determine that your business name and decide the type of business entity being established, it's just a matter of completing the necessary registration paperwork with the Texas Secretary Of State.
Get Licenses & Permits
Choose a suitable and available name for business and then research which licenses and permits will be required. business.