How to Open a Business
Do you have the entrepreneurial itch? Starting a business of your own can be so exciting but quickly turn to pure frustration when trying to make your business legitimate. Here are some tips and tricks I learned from starting two companies.
Deciding on name is hard. It’s like naming a baby. The name of your company is the first impression you make on a customer. Take time to really decide on your name. Then it’s time for a logo. You can hire local a graphic designer who will typically work within your budget to create a professional logo for you. There are websites that may do it cheaper, like Fiverr, but communication is not as efficient with these sites.
You will need to determine how your business will be structured. Are you a sole proprietor, LLC, Inc? Do your research and consider consulting with a tax professional about what the best structure is for your company.
Once you have a name, get it registered! Apply for an EIN. This is your Federal Employee Identification Number. You can apply for your EIN by visiting, https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online. Make sure you are on the IRS website. There are lots of scammers who with apply for an EIN on your behalf. This can cost hundreds of dollars. EINs are FREE. Do not pay to have someone apply for your EIN. The form for an EIN is simple and you are giving your EIN very quickly.
In Maryland, you can apply for articles of organization by visiting https://egov.maryland.gov/businessexpress. The website will guide you along the process. This process is a little more in depth than obtaining an EIN and does cost a few hundred dollars. Each state has different requirements, processes and costs associated with opening a business.
Once you have your EIN and State Articles of Organization, you can set up a bank account. I use a local branch of a bank chain but there are also new, online bank options available.
Now that you are established, do you need a phone number or multiple lines? GoDaddy offers a services that will add a second number to your already established smart phone through an application. It’s not perfect but it works. Check it out at https://www.godaddy.com/smartline/second-phone-number. If you are in need of a landline or phone system, we partner with brokers who can provide you with the best option for your business.
You now need to think about how you will accept payments for your products and services. There are many point of sale systems available. Along with POS systems, you will need credit card processing. Some businesses will need credit card processing but not a POS system. There are applications that will create invoices and process payments but beware of their high transaction fees. Three percent is a hefty chunk of money for processors to take of your hard earned money. We use a private processor who negotiated rates with us and is taking much less of a transaction fee than any app.
Are business cards a thing of the past? We thought so, until people started asking for them. So, we had a local graphic designer design and print business cards for us. Consider whether you need business cards, but know they don’t go bad unless you change your information. So make sure your business processes are established before going to print.
We feel that websites and social media pages go hand in hand. Some businesses will only have one or the other, but we feel they really work well in conjunction with each other. An online presence is a must to show credibility and professionalism these days.
As you are up and running, you may decide you need uniforms. We strongly recommend using small businesses to support the community. The 4Imprints and other online companies are great but we encourage you to support local businesses. Sometimes they are even the subcontractor completing the work for these online companies.
Although many brick and mortar shops have gone by the wayside, there are definitely still needs for storefronts. When negotiating your lease, make sure the responsibilities of the property are well stated. Who is responsible for the upkeep of the property? Trash removal? Snow removal? With a storefront, you may also need to budget for cabling for phone and internet services. You may want to consider a surveillance system for the property as well.
There are other aspects that may be specific to your business, such as licenses or certifications. Each business is unique and will have their own set of requirements to be fully operational.
There are supporting cast members you will want to hire along the way to opening your business. A good tax attorney/accountant will save you some major headaches. You may want to look at web designers or social media managers to help with getting you started. Once you are up and running, hiring freelance administrative support or a virtual assistant might be more economical than a full time employee.
It takes a village. Develop good relationships with your contractors. Using local contractors will typically provide you with better communication, less headaches and quality results. Try and stay organized through your processes with checklists and keep moving forward.
Opening your own business is exciting! Don’t let the overwhelm take away from the amazing future you are creating for yourself.
Crew Business Solutions wants to see your business succeed. If you have questions, need support or would like recommendations for any of the services discussed, please do not hesitate to contact us! We can’t wait to see you succeed!
Crew Business Solutions is not paid by any of the sources listed above. This article is strictly for informational purposes and is based upon our own experiences. Experiences and processes may differ or change from what is listed in the article.