Whether you have years of experience providing services or just a great concept, you may have recently started thinking about creating your own business. Being your own boss can be a challenge, but it can also be a very rewarding experience.
Starting a company is an intimidating idea to many first time business owners, and it is easy to struggle with questions such as where to begin that process. Here are a few simple steps that you can take when you truly think your business idea could lead to a profitable company.
Look Into the Industry
You need to understand the market to see if the business idea will work. Are there already companies offering the products or services that you intend to provide? If so, how will your company be different? What do experts predict as the likely future for the industry? Market research will not only help you understand what the business landscape is in your area, but also to understand what needs aren’t being met, allowing you to create a business that will thrive despite competition.
Create A Rough Model of How the Company Will Operate
Even if the industry itself is viable, you need to determine whether your concept would succeed. Spend some time outlining what it would cost you to operate your business based on the supplies you would need and then determine how many services or products you would need to produce every day or every week to support yourself. Here it is important to begin looking at all expenses such as equipment, cost to rent a space if necessary, inventory, etc. to understand how profitable your business idea is, and identify opportunities to help your business succeed.
Will you need additional employees? If so, you need to factor in the pay they would demand that will affect your ability to turn a profit. Looking at what people currently charge for the same goods or services can help you determine if the amount of effort you would invest would be worthwhile. Once you have a strong outline, the next step is to create a full business plan.
Explore the Technicalities of Starting A Business
If you feel comfortable with the idea for your business and your ability to execute the concept, then the next step will involve looking into the more technical aspects of starting a business. Will you require licensing from the state? Are there special forms of insurance that you will need to protect yourself from liability?
You will need to think about what kind of business form you want to use and how you will gather the funds necessary to start the company. There are many other practical steps you will need to take, including choosing a name for your business, creating separate bank accounts, establishing a facility, creating an online presence and advising tax authorities of the business.
Exploring your business concept and adequately protecting yourself when starting a business can be a challenge, which may mean that you need outside help. Seeking legal advice as you explore a new business concept could help you bring your idea to fruition. The attorneys at Gudeman & Associates can help you plan and execute your goals, and offer a wide range of services for new and existing Michigan business owners. Contact us today to schedule a free 30-minute consultation.
