7 Things You Need When Starting a New Business
Starting a new business, allows for freedom in creativity and time. Businesses can grow with the right mindset. However, many new owners are at a loss on what steps to take when starting a new business. There are many factors to one’s growth. Against strong competition, the essentials are needed. A strong foundation will support the growth in customers and demand for orders, however, what are these necessities?
Here Are 7 Must Have Steps Every Entrepreneur Must Take When Starting a New Business:
1. Naming your Business
A name can have a strong impact. It is good to create a name that is easily remembered. Your name will aid in your presence on search engines, improving your SEO. SEO is search engine optimization which is how your presence appears online. Once you are set on your name, check the availability of the name by securing the domain name. Each part of your company can be based off of this name, such as business emails, the website, and the logo.
2. Incorporating your Business
An incorporated business is a legal entity that is separate from the owners. The owners are not liable to the financial burdens of the corporation. This creates a safety net for businesses. A corporation inspires a greater sense of trust in customers and releases burdens off of the owners. There are several options for when you incorporate your business.
LLC, or Limited Liability Company, protects owners from the business’s debts and liabilities. It also has a more flexible structure in management. There are nearly no restrictions on the ownership status. A LLC allows for easy transfer of profits between owners. The taxes of a LLC are paid on an individual level.
- S Corp
A S corporation protects owners from the business’s debts and liabilities. Taxes are paid at an individual level. There are additional tax-deductible business expenses and self-employment tax savings. The ownership of the corporation can be easily switched by selling stocks. S corps have a limit of 100 owners. S Corps need to have annual corporate meetings with directors and shareholders. The corporation can continue even if the owner passes away.
- C Corp
A C corporation protects owners from the business’s debts and liabilities. Taxes are paid at a C corporation rate. Owners can also receive self-employment tax savings. C corps need to have meetings between shareholders and directors annually. C corps are allowed to sell stocks for capital. The corporation can have an unlimited number of shareholders. C corps can continue even if the owner passes away.
LP, or Limited Partnership, protects some of the owners from the business’s debts and liabilities. In a LP, a single partner is considered to have unlimited liability while limited partners do not. Limited partners are allowed to invest capital into the business while holding some control. Taxes are paid at an individual level.
Businesses need an EIN, or an Employer Identification Number, to hire more workers. It can also be used for when you open a banking account. Every business should check in with their area’s laws and regulations.
3. Establishing a Business Phone (Toll Free 1-800)
Phone services are important for customers to contact the business. A toll-free phone number can allow for customers to call without worrying about paying for the call. It is essential when starting a new business to get a 1-800 phone number and to create greetings with professional voice acting and equipment for the best service.
4. Creating a Business Banking Account
A company banking account is necessary to manage finances. It also helps separate business and personal life. Each business has different standards, making it essential to explore as many different options possible before opening an account. The following banking accounts are only a small sample from the variety of options available.
Chase Bank allows a business to open an account with a $25 minimum deposit. In order to maintain the account, you need to pay a $15 monthly fee or maintain a $1,500 minimum daily balance. There is no limit on the amount of electronic deposits you can make. You can make a total of $5,000 in cash deposits per statement cycle with no extra fees. You are also allowed 100 transactions per month with no extra charge.
Bank of America allows a business to open a banking account that provides businesses with a savings account a second business checking account at $12 per month. The checking account charges a $18 monthly fee which can be avoided if you maintain a monthly balance of $5,000 or more, maintain a minimum daily balance of $3,000, or one of the other options the bank offers.
Santander Bank allows a business to open an account with a monthly fee of $7.50. This can be waived if you maintain an average of $1,500 balance daily. The owner is allowed 50 transactions per month with any further transactions being $0.60 each.
TD Bank allows a business to open an account with a minimum deposit of $25 and a monthly fee of $10.00. The owner is allowed 200 transactions with any further transactions each being $0.75. Cash deposits up to a total of $5,000 are free.
Disclaimer: All of the values for each bank were based off of the information available online. For the exact numbers, please contact the banks.
5. Creating a Brand Identity
Now that you are slowly starting a new business, the brand identity needs to be set. It is what customers first use to define the business. It creates a sense of professionalism for a company to have nice logos and designs. This makes it essential to create your logo according to what you have always imagined as well as being visually pleasing for your customers.
6. Designing a Professional Website
A strong digital presence is good for anyone starting a new business. People spend only 3 seconds deciding if a website is worth their attention. The website needs to be both visually pleasing and user friendly. A website should also work on all platforms and browsers. All successful businesses look to create and maintain a beautiful website that has been tailored to their needs.
7. Marketing and Growth
Customers are the people who drive sales for your products and services. Understanding the age range, the gender, and habits of your customers is important. You can maximize your reach to customers on several platforms. Through strong marketing strategies you can attract new customers for a great growth.
There are many factors to consider when starting a new business. This article only touches upon a small part of those needs. Your business can expand beyond your beliefs if you continue to nurture these ideas. With this small guide and your best efforts, you can reach great success.
Dreams Animation is a growth hacking agency that offers many services companies need. We can create mobile apps, animate explainer videos, manage your social media and continue to support you in your endeavors. Dreams Animation has a great wealth of experience that has been recognized by many awards and programs. We have worked with a variety of small businesses with some having grown to become multimillion-dollar companies. When you begin to work with the team, your business becomes our business which makes your success the highest priority. Contact us at 212-202-0767 for a FREE consultation.