This guide outlines the strategies and steps to launch a business venture successfully.
The chances of successfully establishing a business venture is one in two for first-time entrepreneurs, with little over half of the new companies being dissolved within their first five years of existence.
According to the British Entrepreneurial Center, only 20% of businesses survive their first five years and 50% are gone within 13 years. The reason for this drop-off is due to poor planning, lack of finance, or unrealistic expectations on the market.
Keys to launch a business venture
Here are three key considerations you should make when launching a business venture.
Have a business plan
The importance of having a business plan is often underestimated by entrepreneurs, but this document will help you map out an idea and proof if it’s worth pursuing as a full-time venture.
Before writing a business venture plan, it’s important to research and learn as much as possible about the competition and market. This will help you anticipate questions and prepare answers for people and institutions that you’ll need to convince of your idea’s viability before they invest in it. Business plans are not one-size-fits-all, but the research and preparation that goes into them is an invaluable step in getting a startup off to a strong start.
Register your business name
The first thing you should do is register your business venture name. The last thing you want to happen is to spend all of your hard-earned cash on a startup and then get sued for infringing on a trademark that belongs to someone else.
Once you’re sure that your business name hasn’t been registered by someone else, the next thing you need to do is get a DUNS number. This will allow any companies that are doing business with you to verify your company’s identity, keep track of where they are in the purchasing process, know your company’s credit history, and more.
The next step is to apply for an Employer Identification Number (EIN), which you’ll need to fill out a W-9 or W-8BEN before you can do business with any company that takes international orders.
Consult with an agency or a marketing pro
More often than not, startups face the most common problem of having an idea but not knowing how to materialize it into real life. Actually, this is just one part of the struggle. One of the most important aspects of starting up your own business venture is marketing and selling out your product or service. When you just have an idea and not much else, getting attention from people is difficult.
When you want to sell a product or a service, the team behind https://binarapps.com/ recommended that you get in touch with a marketing pro or a company that specializes in taking care of your online presence or developing web and mobile applications. It can be very difficult trying to manage everything alone, and it is always better to have the pros on your side ready to tell you how it’s going to be done.
Determine the legal structure for your business venture
Starting a business is an exciting and rewarding process, but it can also be a complicated one. Figuring out the most effective way to legally structure your business is an important step in launching a successful startup. While there are many types of legal structures you can choose from, experts suggest that choosing the right kind of business entity for your startup is an important decision that has many benefits. If you’re considering starting your own business, here’s what experts suggest to consider and how they can help. The most common legal structures for a new business are:
1.) Sole Proprietorship: This type of legal structure is the easiest and least expensive to establish. With a sole proprietorship, you are the business and there is no legal distinction between you and the company. This type of structure best applies to people who run their businesses full-time but don’t plan to grow or hire employees.
2.) Partnership: A partnership is a business legal structure where two or more people own and run the business together, with equal responsibilities and ownership rights in the company.
3.) Limited Liability Company (LLC): LLCs, like corporations and partnerships, are separate entities from their owners; therefore, the company is liable for any debts it accumulates. Owners of an LLC are referred to as members and have limited liability, just like shareholders in a corporation.
4.) Corporation: If you’re thinking big when it comes to your startup, a corporation may be the best choice for your business’ legal structure. A corporation is its own entity and provides more protection for its owners from lawsuits than the other structures (i.e., LLC and sole proprietorship). Owners of a corporation are referred to as shareholders, and the business has to pay corporate taxes on the net profits.
Understand small business tax requirements
According to experts, understanding the basics of taxation and how it applies to your business venture is imperative for small business owners trying to get their companies off the ground.
These professionals recommend that business owners consult with their CPA, as well as with an attorney who specializes in small business taxation, before launching their companies to ensure they are properly prepared. The last thing you want is for your startup to fail because of tax trouble.
Paying your taxes is something that every business owner has to do, and it can be a surprisingly complicated process. You need to make sure you are filing the correct forms at the correct time; otherwise, you could end up getting audited or having some other sort of unpleasantness. If you want your startup to succeed, it’s definitely worth the time and money to get it right with your taxes.
Conclusion
As many experts agree, launching a business venture is something that can be difficult and taxing, but that isn’t the end of the world. It doesn’t matter if you fail or if your business venture experiences hiccups along the way, what matters is that you persevere. With the right legal structure for your startup, expert advice on marketing and advertising, and a good tax attorney, you can set your business venture up for success.
