How To Start A Business: 5 Easy Steps
Introduction
Graduating from college and entering the job market can be a scary time. It's never easy to find work, but lately it's been more difficult than ever. The economy is still struggling to recover from the recent recession and unemployment rates are higher than they've been in decades. With this kind of climate, it's no wonder so many millennials have turned to starting their own businesses as a way of making money. Entrepreneurship isn't just something reserved for tech startups anymore: entrepreneurs have been turning their passions into full-time jobs since there have been jobs at all! So if you're thinking about leaving your 9-5 behind and starting your own business, here's how:
1. Come up with a business idea
Before you do anything, you need to come up with an idea for your business. What are you passionate about? What do you know how to do? What is something that people need in this world and isn't already being done by someone else? It doesn't matter if it's a good or bad idea (we'll get there). You just have to start somewhere and then we'll improve upon it as we go along.
2. Register your business with your state
Registering your business with your state is a great idea because it allows you to receive tax and legal benefits as a registered entity.
Registering costs money (usually $50 to $200), but the state will help you through the paperwork and make sure all of the details are taken care of correctly. You'll need to register a name and address for your business, which you can do online or by mail.
3. Get a federal tax ID number (EIN)
If you're starting a business and want to keep it as simple as possible, then get yourself an Employer Identification Number (EIN). In layman's terms, an EIN is a tax ID number that allows your company to be recognized by the IRS. It's also used for reporting taxes, which means you'll need one if you plan on selling products or services online or running payroll.
If your business is incorporated or has employees, then getting an EIN will be easy. If this isn't the case yet but that's what you're planning on doing in the future—for example, if you don't have any employees but will hire some later on—you can apply now and wait until they come into play before applying again with additional information requested by the IRS.
Remember- it’s free to apply for your EIN! It only takes 10 minutes. Just go here
4. Open a business checking account
Open a business checking account that is separate from your personal account. Make sure to use it only for business-related expenses so you don't get charged overdraft fees or have any other problems with your financial institution. You can also open up a separate credit card for the business as well, which will help build your company's credibility and identity, especially if you plan on taking out loans in the future.
I always recommend - choose a local bank. They will take great care of you and their customer service is usually better than the big national banks. Develop a solid relationship with their loan department early so you can secure business funding in the future.
5. Build a Website & social media pages
Now that you have all the tools you need to start a business, it's time to put them into action.
First, create a website and social media pages. These are essential for getting noticed online and building your brand. Use your website to promote yourself on social media, build relationships with customers and potential employers, share blogs about relevant topics (like this one!), and improve SEO rankings by providing quality content that gets people talking about what you do best—and link back to your website!
Bonus! Get QuickBooks and hire a bookkeeper
You're probably thinking: "But I'm a one-man show! I don't need to hire anyone!"
Wrong. You're going to need to hire some help at some point, and you might as well do it now so that you can focus on growing your business. What if you wanted to go on vacation for a few weeks? Or spend more time with family? Or even just get some work done without worrying about how you're going to pay for office space or equipment?
With Harrisburg Bookkeeping, we will take care of all that for you. We offer online bookkeeping services that allow clients like yourself the flexibility of having an outsourced accounting department without needing to hire a full-time employee. It's easy—we have a team of bookkeepers and accountants who will manage all of your finances. It's also cost-effective—with rates starting at only $200 per month!
Conclusion
There you have it! Five simple steps to starting a business. Now go out there and make something great.
