Starting your business and becoming an entrepreneur is not as complicated as some make it out to be, You don’t necessarily need a college degree, nor piles of money in the bank. What you require is a great idea, a solid plan, and the determination to see it through.
Most don’t know where to start, but only want to set up a business, imagine themselves at the end of the journey, and that’s about it. The obvious first step in this process is to ask yourself why you want to start a business, in the first place. Is it for the extra money? Keep in mind that it may be a while before you begin to see a profit. Do you want more free time? Similarly, the life of an early-stage entrepreneur can’t correctly define by “free time.”
The next step is to assess your passion, skills, areas of expertise, the money you expect to spend, etc., and see how well these fit into your business idea. All of these aspects will play a crucial part in the development of your startup as well as its likelihood of success.
About Your Business Idea
Every successful business starts with a great idea. So, how can you determine if your plan is a strong one or not? There are several things that you need to take into consideration to help you with this question.
Keep in mind that people are far less interested in a brand new and innovative product than they are about a solution to their problems. It’s one thing to create a fabulous product, but entirely another to get the market to embrace it. With that in mind, it’s best to have a product or service that addresses that fact. Adversely, you can frame your innovation through the problem-solving lens.
Similarly, you can use your skills and knowledge in one field to change or solve problems in another. And if all else fails and your idea isn’t about changing anything, you can focus on how to create something that’s better, cheaper, or faster than the competition.
The Company Structure
Of all the decisions that go into starting a business in the United States; one of the most important is choosing the legal structure of your organization. This decision will influence the amount of paperwork, how much you will pay in taxes, your ability to raise funds, as well as your liability.
Here’s a quick overview of the most common forms of company structures:
- Sole Proprietorship– It is the most common type of business organization. It’s the easiest to form and provide complete managerial control to the owner. The downside is that the owner will be personally liable for all financial obligations of the business.
- Partnership – This type of structure involves two or more people sharing both the profits and losses of the organization. This type of arrangement does not bear the tax burden of profits or the benefit of losses. These will be passed to the partners to report in their tax returns personally. Each partner is personally liable for the company’s financial obligations.
- Corporation – Unlike the other two examples above, a corporation becomes a separate entity from the founders. Also known as a C corporation, this business structure can be taxed or held legally liable for its actions. The advantage is that the complete avoidance of personal liability. The disadvantage is the cost of forming such an entity, the extensive recordkeeping required, as well as the possibility for double taxation.
- S Corporation – The Subchapter corporation allows incomes and losses to be passed onto individual tax returns, avoiding the possibility for double taxation.
- LLC – A limited liability company (LLC) will provide owners with most of the benefits of both corporations and partnerships. Profits and losses can be passed to the owner without any taxation on the business, while owners are protected against personal liability.
Where Do You Locate Your Business?
A successful business also relies heavily on its geographical location. Not all states are equal, and neither are towns and cities within them.
These are the ten best states in America to start a new company based on the business environment, access to resources, the cost of running a business, and other similar metrics.
- North Dakota
Below are the ten best cities to start a business based on the rate of entrepreneurship, high-growth company density, net business creation, wage growth, and population growth.
- Austin, Texas
- Salt Lake City, Utah
- Raleigh, North Carolina
- Nashville, Tennessee
- San Francisco, California
- San Jose, California
- San Diego, California
- Denver, Colorado
- Orlando, Florida
- Portland, Oregon
Staffing and Recruiting Opportunities
The easiest way to recruit personnel in the 21st century is by turning to the internet. Below is a list of ten of the best and most commonly used staffing websites in the United States. Each of these sites has a somewhat different approach as well as a set of search options. Don’t limit yourself to one but try a few out.
- Google for Jobs
- US jobs
Another critical aspect to consider about your new business is where to get financing and raise the necessary capital. There are several options available to you.
Bank loans – When it comes to small business lending, some banks are better than others. Below is a list of some of the most startup-friendly banks, in no particular order.
Angel Investors – An angel investor is a private investor with high levels of income that are looking to invest in the development of a startup in exchange for a share of it. They typically invest in companies during their early stage, meaning that they are willing to take high risks.
Usually, there are three rounds of investing A, B, and C which refer to this process of growing a business through outside investment. All of these come before the initial seed capital investment. A right place to come in contact with angel investors is on AngelList.
Crowdfunding – Crowdfunding is another popular method of raising capital. It is where you pitch your idea to people, and they express their support by funding you. The approach works particularly well for those who design technical devices or are providing a creative and innovative approach.
An added benefit is that crowdfunding is an excellent way for entrepreneurs to test the market before selling their goods and services. Crowdfunding platforms, such as Kickstarter and Indiegogo is where this type of funding takes place.
These are some of the most important factors to consider when commencing a startup in the United States. If you need any more information on managing and building your startup, feel free to visit our website.