Do market analysis to identify potential consumer needs and desires. If you’ve already got a great idea for an innovative product, think about who it is that will want to use and purchase your product or service. Be as specific as possible. Consider important statistical factors in your potential consumer base that will help you plan your product and structure your company around its consumers: Age of an average customer Socioeconomic status Location (urban, rural) Education Spending habits
Recent start-up success story “Coin” had the idea of a simple card that consolidates all your credit cards, debit cards, gift cards, and other wallet-clogging plastic into one, easy-to-use card. By identifying a consumer need (to de-clutter) and a simple, elegant product that filled that need, Coin generated a lot of buzzes and attracted serious investors and customers.
Hook up with engineers and other technological innovators if you can’t create a working model of your product yourself. Depending on what you’re trying to create, this may be a serious time and money investment. Consider crowd-sourcing for an initial product, if it should prove expensive.
Catchy Simple Fresh Easy to brand
Your vision for the company Market research and consumer analysis A detailed description of your corporate structure, including leadership and staff Your marketing plan A specific breakdown of costs needed to get your company off the ground A personal appeal to potential investors
Register your name. The name must be unique and registered with the business bureau in your state. File articles of organization in your state. This is a basic document available from and filed with the Secretary of State in some states, and the corporation commission in other states. [5] X Trustworthy Source U. S. Small Business Administration U. S. government agency focused on supporting small businesses Go to source Create an operating agreement. While not required in all states, an operating agreement exists to codify the financial organization of your company in terms of profits. Obtain the necessary licenses and permits to hold business and/or manufacturing in your state.
The partnership must furnish an Annual Return of Income, as well as both employment taxes and excise taxes by filling out IRS form 1095. [6] X Trustworthy Source U. S. Small Business Administration U. S. government agency focused on supporting small businesses Go to source The individual partners must additionally pay individual income tax, as well as self-employment tax and excise tax.
Corporations use IRS form 1120 to file revenue, while shareholders will file income tax as regular employees. [7] X Trustworthy Source Internal Revenue Service U. S. government agency in charge of managing the Federal Tax Code Go to source
Corporations use IRS form 1120 to file revenue, while shareholders will file income tax as regular employees. [7] X Trustworthy Source Internal Revenue Service U. S. government agency in charge of managing the Federal Tax Code Go to source
File for incorporation Draft your company’s bylaws, or operating rules Draft membership applications Elect Directors from the initial membership group
Try to distinguish between essential and optional costs. The cost of the start-up should only include essential costs, the bare minimum to get things started. While it’d be great to have money built-in to the start-up for the Fruit Loops bar you’ve always wanted to have at work, it’s probably not a great idea to build that into the initial plan.
A good cash-flow analysis should accompany your business plan when you meet with investors.
Debt Financing refers to a traditional business loan. To repay this kind of loan, you’ll repay the money you’ve been lent over an agreed-upon period of time. These are offered by banks and the small business authority, who grants SBA loans under the right circumstances. Equity Loans are paid off with shares of the company to be formed. This is generally collected from business associates, friends, and other individuals, and is traditionally favored by small businesses and start-ups. In exchange for a piece of the business and a stake in its future, individuals will put up the cash.
Revolights, a garage-start-up that made awesome-looking rotary bicycle lights, managed to crowd-source almost five times their essential funds based on a simple Kickstarter video that went viral. Because the lights looked so cool, it was easy for individuals to convince themselves to pony up some money in exchange for the product’s availability.
In general, the difference between thinking in terms of a successful business and a successful company is that a company requires much obsession over issues of HR and office policy, in addition to the traditional business concerns of product development and innovation.
