Starting Small Business

Starting small business requires plenty of determination, motivation and good ol' know how. In this article, we serve up a checklist for starting a business of the smaller variety.

1. Identify the Business Opportunity.
As we've covered in previous articles, choosing the type of small business to start can seem overwhelming, especially at first, because of all the opportunities that abound. Type "Hottest Business Opportunities" into your favorite Web browser's search window, and you'll be deluged with information about what's going on-and what's working-out in the real world. Again, you need to figure out where your passions lie and what your entrepreneurial profile is. Put it all together, and you just might be on your way to fame, freedom and stacks of cold, hard cash.

2. Create Your Business Plan.
Why do start-ups need small business plans? They can help you gain a closer understanding of your industry structure, competitive landscape and the capital requirements of starting your own small business. Today, software is available to help you write a business plan using pre-existing templates, or you can choose to hire someone with previous experience to perform this task for you.

3. Name Your Business.
How important is your business name? Plenty. A properly chosen business name helps "brand" your business as familiar and reputable; it can distinguish your company from an ocean of lifeless competitors; and it can convince customers and prospects that they should be doing business with you.

4. Choose a Business Structure.
It's crucial that find the best ownership structure when starting small business. Your most basic choice among legal business structures is the sole proprietorship, but other common structures include the limited liability company, the partnership and the S corporation.

5. Register Your Business.
Starting small business requires the typical regulations and paperwork. You can register corporations, LLCs, partnerships and even articles of dissolution with your local Secretary of State. You may also need an Employer Identification Number (EIN), which is used to identify your business by state taxing authorities.

6. Find Start-up Money.
Believe it or not, most small businesses aren't funded by grants, venture capitalists or even banks. Seed cash for starting a small business often comes from personal savings, friends & family and other sources.

7. Sign Up for Business Insurance.
You're fully responsible for the risks associated with your small business. Make sure to obtain the proper small business insurance to prevent against litigation or natural disasters.

8. Create an accounting system.
Are you a "numbers person?" Accounting and bookkeeping are critical aspects for small start-up businesses. Setting up your small business accounting system helps you understanding the underlying financials of running a small business.

Now, you have a basic understanding of the fundamental steps to starting small business. So get out there and start creating your success!