10 Things to Consider When Opening a New Business

If you’re considering starting up your own new business, congratulations!  There are a lot of considerations you must be aware of before you get your business up & running.  Here are 10 things to consider when opening a new business:

1.      Hire Professionals Who Specialize in New Business Start-Ups: You can skip this step if you feel confident in navigating the new business start-up process, but – if you need help or feel overwhelmed – this could be the difference you need to successfully launch your business so consider hiring the professionals who help people do this regularly (like us)!

2.      Do Market Analysis/Create a Business Plan: You can’t just blindly leap into business without doing some homework, so conduct market analysis & create a realistic business plan (goals & standard operating procedures) to see if your ideas can turn into a viable business opportunity.

3.      Pick a Business Name, Domain Name (Website), and Social Media Name: This is the starting block for most businesses.  Getting the right business name, domain name to match ideally your business website, and social media name to all line up can make advertising/branding for your business much easier.

4.      Physical Location/Office Space: Where will you operate the business? Are you able to run this business from anywhere?  Depending on what type of business you’re starting could make this a big consideration/expense for some new businesses.

5.      Legal Structure/Business Registration/Entity Type: You want to be a LLC, sole proprietorship, S-corporation? – make sure to register the business with the IRS, Department of State and/or Revenue/Taxation, & any local tax authorities to get the appropriate legal structure, business entity type (DBA if needed also), and taxes to collect/file.

6.      Insurance Coverages: Sounds simple enough but knowing if you need business liability insurance, workers’ compensation insurance, & unemployment compensation insurance is critical especially if you’re hiring employees.

7.      Open Business Bank Accounts/Establish Lines of Credit: See which banks/institutions offer you the right package you need for your new business banking/borrowing needs.

8.      Interview/Hire Employees/Set Up Payroll: You should hopefully be able to pay yourself (and any new hires if needed) shortly after you start conducting business so make sure to hire the right people and pick the right software/provider that will make payroll simple for you.

9.      Utilize Benefits/Retirement Plans to Accomplish Goals: If you want to hire quality workers for your business, you’ll have to offer a competitive pay & benefits package (health care, retirement plan, vacation/PTO, etc.).  Since you are going to be working for yourself, make sure you can pay your bills, have health insurance & a retirement plan that helps you make this new business adventure worthwhile.

10.   Starting a New Business Isn’t Easy but It Can Be Very Rewarding: Can’t stress this one enough; it’s not all roses.  It’s not for everyone.  You’re probably going to put in some long hours.  You’ll probably make some mistakes & learn a lot on the fly.  Refine that business plan as needed (remember to be realistic) and find some semblance of work/life balance, especially if you have a family.  When you find success as a new business owner, there’s no better feeling in the world than controlling your own destiny.

Find an experienced professional who helps clients regularly with opening new businesses, believes in helping his/her clients improve their personal/tax/financial situations, and has the heart & demeanor of a teacher, NOT a salesman, and chances are you’ve found the right professional to help you with opening your new business.

For more information, please email marty@mftax.com (PA), matt@mftax.com (FL), or call (570) 760-6524 (PA) or (561) 329-12696 (FL).