One of the great things about this country is the ability for people to create their own dream. The biggest dream that most people have is starting a business. In the hopes to help make this easier for everybody we here at RBS have created this simple how to for starting a business.
Step 1 Business Plan
This will start with your basic idea. Let’s say you want to start a pizza shop. We need to first develop the plan of attack for creating the business. There are many sample plans that can help you get your plan looking nice and this one from SCORE.org is one of the best generalized ones. Here’s a quick list of contents for your business plana general company descriptiona description of your products and servicesyour marketing planyour operations plana list of the management and ownersfinancial statements (including personal finances, startup costs and running costs)You will also need to determine the ownership of the business at this point. Will you be the Sole Proprietor? Will it be a Partnership? The IRS has a site dedicated to helping define the different options so be sure to look them over to help you determine what is best for your business.
Now that you have your business plan organized we can start collecting the documents that we need to start the business.
Step 2 EIN/Federal Tax ID
Probably 90% of businesses will need a Federal Tax ID number or EIN (Employer Identification Number). This will allow you to file taxes at the end of the year with the IRS and is also required for opening bank accounts or obtaining loans. To obtain your EIN online begin the application process here. This will also come with loads of information on what to do with the number and what paperwork you’ll need to file for your business taxes. If you are lucky enough to live in New York, South Carolina, or Massachusetts, you can use their one stop state registration to also obtain your EIN. Other states will require you to register separately.
Step 3 State Registration
Each state has it’s own requirements on registering businesses and they all vary quite a bit. The IRS has a list of links to each state’s website with information on registering so check for your state for the specifics. Registering with the state will allow you to get your business Retail License, which you will need to sell products from your store or shop.
Step 4 Bank Accounts
Business bank accounts are a necessary feature for each business to be able to do transactions. RBS only works with local credit unions as they usually have the best rates and are more willing to help with startup businesses that are in their area. I have found this site that can help you locate a local credit union. We prefer credit unions for a few reasons, they are non-profit, customers are the owners, and there are lower fees and higher savings rates. Credit unions may not be for everybody but be sure to look into your options when starting an account as a high cost account may break your business in the long run.
Step 5 Location
If you are opening something along the lines of a pizza shop, you’ll need a location. You may want to rent to start with but never rule out purchasing. Your bank may have a loan that you could use to purchase a location. Be sure to weigh your options when looking at locations as a well traveled spot will help with building traffic. These may be harder to afford but will pay off in the long run. Locations off the beaten path can also pay off greatly if you use it to your advantage. Be sure to really weigh your options when looking and choose something that suits your business needs and plans in the long run.
Step 6 Website
Having a functional website is a must for any business in this day in age. If you are a retail store that is attempting to drive traffic into your store, you’ll want a simple and easy page that describes what you have for sale and where you are located. Flashy sites with fireworks exploding into your product advertisements are un-necessary and will hinder the mobile experience. If you want to sell your products on the site you’ll want an e-commerce solution. There are millions of website designers available and we just happen to be one of them. To request a quote for a site please email us with your needs and information.
Step 7 Social Networks
Along with your website, you’ll want to make good use of social networks. This doesn’t mean just Facebook, as each network has it’s own advantages as a business. Facebook is good for it’s amount of people, so this helps you connect with the majority of your customers. Google+ is closely connected with Google Maps and Google Local, which allows people searching for places to find your shop with all of the correct information that they’ll need to get to the store. LinkedIn is more business oriented and is a good place to use to scout for employees and business partners. Twitter has a limit on it’s post size so is best used for quick promotions (reshare this tweet to get 10% off) and to give quick updates on new things.
Step 8 Invoicing
For any business to succeed you’ll need a good invoicing system to keep track of your orders and quotes. Quickbooks is the leader in this area but for an upstart business it can be a bit of a cost. There are hundreds of alternatives out there that are just as good and are more affordable or free. RBS uses an online invoicing and accounting system so that we can access it from mobile devices while on the road. This is trending more and more in business as everything is moving to the cloud. If you would like to get more info on an online accounting and invoicing system email us and we can talk you through it.
Step 9 Payments
Assuming that you are ready to sell your first pizza, you’ll need a way to accept credit cards. Accepting cash is easy and is usually a preferred method, but should be kept to a minimum as it can be easily stolen or lost. Credit cards offer a bit of safety at a cost. There are application and monthly fees as well as a fee for each transaction. These fees will go down and may even disappear as you grow your business. You can apply for credit card processing (also known as merchant services). You’ll have the option for a terminal on site (a card swiping mechanism) or for card not present processing (a web interface for entering purchases). The CNP will allow for your business to be more mobile as you can enter information from a smartphone or tablet. And either way will allow for processing on a website.
Step 10 Rake In The Dough
This step is pretty self explanatory. As your business grows, just keep making money.