Business Checklist
You have a vision. You’ve taken some initial steps. You’re even ready for the Big Leap. But what does that even look like? Whether it’s your first business or this is your fiftieth venture, this short Guide offers helpful tips to get you off to a great start.
Select a Business Name
Your First Impression to the World
Ensure your new business name is "clear" before its first use. Preliminary name clearance involves checking name availability with relevant secretary of state databases, performing a trademark search for the name at the state and federal levels, conducting internet searches to disclose common law uses of the same name or similar names and verifying name availability with domain name registrars for your website.
Create A Business Plan
What's the Path To Reach Your Goals?
At the outset of a new business, take the time to clearly define the business' objectives in a concise, dynamic business plan to better communicate these goals to key stakeholders, including lenders and equity investors where applicable, and customers, to help them understand what's unique about your service or product.
Create a Budget & Finance the Business
Know Your Numbers
Factors affecting the choice between debt and equity include the company's need to retain control over the business. If retaining control is a concern, but the company is unwilling or unable to take on debt, the company may consider raising capital through a minority investment. If the company already has a lot of debt, is subject to restrictive financial covenants, or does not want to provide a guaranty or other credit support, it may only be able to obtain funding through the issuance of equity. Lenders may be unwilling to lend to the company, or suitable investors may be difficult to find.
Select A Legal Structure
How Should You Set Up This Venture?
One of the most important decisions in forming a new business is selecting the appropriate legal structure, which impacts choice of entity, management, liability, taxation, financing, and other key issues. The state law classification of a business entity is not always the same as the tax classification of a business entity (for example, a state law partnership can often elect partnership or corporation tax status).
Choose A Business Location
Where Will You Operate?
When choosing a business location, consider proximity to customers, suppliers, and distributors as well as competing businesses near the proposed location. There are also minimum business requirements, like office square footage, accessibility to public transportation, and parking facilities. Also consider whether to buy or rent real estate along with the related tax considerations.