STARTING AN LLC BUSINESS
Want to start a small business?
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Do you have what it takes to start a business?
A taste of what is needed to start a business
It s time to quit telling people you're going to start a business, and in fact actually put in the effort to make it work. In this concise article, we break down the key steps of beginning a new business to put yourself on course for future success. Starting a new business is not as easy as some folks would like you to believe. You have to be organized, hard-working, and committed - traits that are definitely not easy to cultivate, but are absolutely essential for successful entrepreneurship.
The very first step is to develop a strong business plan that clearly outlines your startup objectives. This plan will need to address several key issues: your company's competitive position, financial situation, and marketing mix. Many startup business owners make the mistake of treating their plans as simply homework for a better company, when in reality, it is far more. Developing a sound business plan provides a roadmap for your company's growth, which inspires and guides prospective employees and investors.
Once you have your business plan, you should also develop a solid financial strategy to address all the key issues mentioned above. A good startup funding strategy will include working with potential angel investors and obtaining a working capital line of credit from a bank. Working with an angel investor can significantly increase the valuation of your business because they provide a significant amount of personal equity. However, you must be prepared to provide a substantial return on such capital to gain a partner. While working with angel investors to raise money, you should consider obtaining a brokerage account to handle the interactions between you and the private investors.
Another key issue is to make sure you have qualified venture capitalists. Venture capitalists typically invest in early-stage startups, so you will want to ensure that the venture capitalists you contact are capable of funding your business. To qualify, you must demonstrate a concrete business plan with a series of anticipated future financial results. You should also submit to the venture capitalists a written equity proposal. This allows the venture capitalists to review your business idea and to evaluate whether or not it will be a good investment.
Most importantly, you must be prepared to obtain a reasonable amount of financing from venture capitalists. In order to do this, you should work with qualified mentors who are willing to give you professional advice. These mentors will provide you with the guidance you need to build a strong and viable business plan, secure a working capital line of credit from a bank, and attract angel investors. Without a doubt, it is one of the most important decisions you will ever make. Not only will it help you grow your current company, but it will also help you achieve the largest dream of your life: becoming a millionaire!
When you meet with venture capitalists, it is important to impress them with a detailed presentation of your business ideas. However, as with any type of investment, you must remain completely confidential about the details of your startup. Remember that if the venture capitalists discovered that they had been informed of the potential existence of your company, it could seriously damage your ability to raise additional capital from other private investors and banks. Specifically, failure to register your invention with the United States Patent and Trademark Office could result in severe fines and penalties. Moreover, registering your invention with the USPTO should also enable you to avoid future lawsuits and conflicts with other parties that may come up with your product or technology. Finally, registering your invention with the USPTO will require you to disclose to the venture capitalists your intent to commercialize the invention, your business plan, and any information that demonstrate the value of your invention.
Once you and your co-founders have completed these steps, you can then approach angel investors or venture capitalists to seek capital for your company. As previously stated, it is vital for entrepreneurs to consult with qualified mentors who are willing to provide them with advice about how to best utilize their relationships with co-founders and other entrepreneurs to achieve their business goals. Additionally, when you seek outside funding, you must ensure that the venture capitalists you approach are able to supply you with the capital, resources, and credit terms necessary for the development and growth of your business.
In addition to providing you with the financial means to launch your business, you will also need to develop and implement a sound business plan that outlines the products or services that you intend to offer as well as the marketing strategies you plan to employ to achieve your goals. A well-written business plan will enable you to obtain venture capitalists, attract new partners, and secure the additional funding that will help you grow your company. In short, developing and executing a solid business plan will likely be one of the most important things you do as you start a business.
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