What are the Steps Involved with Starting a New Business?

Before spending time researching, planning, developing and starting a new business, the first step is to decide what type of business to start.  What are you passionate about?  What are your end goals for starting a business?  To develop it and run it long term? One day let someone else run it and then collect on profits from the business?  Or develop a business with the intention of selling it later on?

Once you figure out WHAT you want to do, you need to formulate and map out the details in the form of a business plan.  There is no better way to cause a business to fail, than by failing to plan for it.  A strong business plan will include an explanation of the product or service a business will offer, an explanation of the market, personal strengths of it’s operating team (owners/partners), how marketing and advertising will be executed, and the business’ projected profitability.

The next steps are to incorporate the business, establish a Tax-ID/EIN from the IRS, and purchase any necessary licenses, permits and insurance.  There are many great online resources to help a new business owner to decide the legal business structure that is right for his/her business.  In most states, incorporating with the local Secretary of State’s office can be done online, in person, or through the mail.  Once incorporated, a Tax-ID/EIN can be obtained through the IRS by completing Form SS4 and submitting it electronically, via fax, or through the mail. It can take up to two weeks to receive the Articles of Incorporation from your local Secretary of State office, and Tax-ID certificate.