Leaving your 9-to-5 is a big step, especially if it’s to start your own business. There are many things you need to know before you actually go through with a new pursuit. With the right knowledge and careful planning, however, you can make your business a great success. Here are some of the most important steps that you definitely shouldn’t skip!
Create a Plan
Long before you actually leave your 9-to-5, Nolo says the first step to starting your own business is to write up a business plan. Creating a business plan will help estimate your costs, timeframe, and skills needed for starting the business. It can also help you estimate your revenue by figuring out who your clients will be and how you will reach them. In your plan, it’s smart to make a marketing strategy as part of the plan, and identify and plan around potential problems that could arise as you launch your business.
There are many ways you can finance your business. The safest way is through your own money, though another option is to use a home equity line of credit or insurance policies. According to Franchise Gator, you can use your 401(k) assets to fund a new business if you have at least $50,000 saved up in it. Finding investors and looking into small business loans you qualify for are alternative methods that many small businesses have used successfully in the past. You can even utilize credit cards depending on the scope!
Make Your Business Legitimate
Before your business actually opens for business, you need to make it legitimate. During this step, Nav recommends you pick out a business name that is unique and differentiates you from other businesses. You also should pick an address and phone number, register your business name, and create your business entity before you open its doors. Certain licenses and permits may also be required for your industry. Additional steps to truly legitimize your business may include setting up the financial books, creating a website, registering with online services, and getting insurance.
There are many steps to starting your own business, but the most important thing is to not rush it. A grand idea requires time, effort, and planning to turn into an income you can live off of. Taking the right steps, and even reaching out for help from experienced professionals, will help your startup to be a success.
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