Starting a Business Basics

A business structure where the owner and the business are the same legal entity.

A business structure that legally separates the owner's personal assets from business liabilities.

A unique identification number issued by the IRS to businesses.

The legal process of registering your business with your state or local government.

Government authorizations required to operate a business legally, depending on industry and location.

Different industries need varying levels of licenses, permits, and regulations.

Business taxes differ depending on the business structure; usually involve sales tax and possible state/federal taxes.

Essential coverage for business risks, including liability, property damage, workers' compensation, etc.

A method of gathering customer feedback using online questionnaires.

Small group discussions designed to get detailed customer feedback.

Talking to potential customers personally to get real-time feedback.

A thorough evaluation of your competitors' strategies and offerings.

A tool to compare your business to competitors across various aspects.

The legal form of your business, affecting liability and taxes.

The ability of a business structure to shield owners from personal responsibility.

Dividing your potential customers into groups with shared characteristics.

Detailed descriptions of your ideal customers, including demographics and needs.

What makes your business stand out from the competition.

Using separate bank accounts for personal and business finances.

A roadmap outlining a business's goals, strategies, and financial projections.

A concise overview of the business plan, grabbing the reader's attention.

Describes the business's core offering and what it does.

What makes a business stand out from competitors.

Detailed study of the target market, understanding their needs and behavior.

Plan for attracting and retaining customers, outlining specific marketing channels.

How the business will price its products or services.

Forecasts of income, cash flow, and other financial aspects.

Financial forecasts based on conservative, achievable expectations.

The expenses needed to get a business running, including equipment, inventory, and marketing.

Startup expenses paid only once, such as equipment and initial inventory.

Recurring expenses, like rent, utilities, and salaries.

The amount of money needed to cover operating costs for six months while the business establishes itself.

Various ways to obtain financial resources for a business, such as loans, investors, or crowdfunding.

Financial support for small businesses, often offered by banks or government agencies.

Individuals who invest in promising startups in exchange for equity.

Raising capital from a large number of people, often online.

Loans specifically designed to support new businesses.

A plan that outlines expected income and expenses for a business.

Keeping personal and business finances in separate accounts and records.

Detailed documentation of income and expenses for a business.

Business projections should cover at least three years, with the first year detailed monthly, the second quarterly, and the third annually.

Business projections require clearly explaining the assumptions behind revenue growth and expense calculations.

Choosing a business location should consider target customer reach, foot traffic, parking availability, competition, and local regulations.

Essential technical systems for a business include a point of sale system (for product sales), accounting software, reliable communication systems (phone, internet), and customer service platforms.

Hiring considerations should begin before the actual need for employees, focusing on roles, outsourcing, and automation possibilities.

Signs that a business needs to hire include consistent long hours, missed opportunities due to workload, and the ability to reliably support a new employee financially.

Clear descriptions of job duties and requirements.

Employment laws and safety regulations for hiring.

Structured process to assess candidate suitability.

Ensuring all necessary registrations, licenses, and permits are in place.

The legal form of a business (e.g., sole proprietorship, LLC).

Keeping separate accounts for business and personal use.

Detailed plan outlining business goals and financial projections.

Necessary capital to sustain a business in its early stages.

Establishing a business entity and initiating operations.

Focus on one task at a time to avoid feeling overwhelmed.