Starting a Small Business Checklist
Things to think about before starting your small business
Starting a small business is exciting; you’re finally making your dream a reality. While you’re looking ahead, there are many factors to consider. Your first step should be to find a CPA. CPAs can help you navigate the complex issues inherent in starting a small business. This checklist will help you make a plan of action, and find those many areas where your CPA can add value.
Most sections include links to CPA Powered and SBA Tools.
The Basics
Determine your readiness to start your own business
What product(s) or service(s) will you sell/provide? Who are your customers? Your CPA is a trained adviser and will be eager to discuss your skills, experience, business ideas and goals. You can also find a list of questions to ask before starting your business at the U.S. Department of Commerce’s Minority Business Development Agency website.
Address the essentials
Creating a business plan, finding office space and setting up your business name with local and state regulators are just a few of the activities you’ll need to address when starting your business. Your CPA can help you determine what your small business budget will allow.
10 Steps to Starting a Business
Define your market
Knowing what businesses or individuals will need your product or service is an important part of success. The SBA offers tools for understanding your market, and uses data to help you find it.
Understand current economic conditions that could contribute to or hinder your success
Your CPA stays abreast of the frequent market fluctuations that can affect your business’ success. The featured tool from the SBA will help you better understand what you need to discuss with your CPA.
Understanding Economic Conditions
Select your business location and identify necessary equipment and required technology
Understanding how your business’ location matters, and what equipment you need to make it run is essential. The SBA offers guides for choosing a location and equipping it appropriately. Your CPA will be able to give you valuable advice about the desirability of leases and other office space options.
Choose Your Business Location and Equipment
Determine your staffing needs and understand related employment laws
If you need employees, you’ll want to define their functions and understand the laws that govern their employment. Your CPA will understand regulatory compliance in the state where you do business.
Hiring and Retaining Employees
Determine your business structure and related legal, business and tax implications
There are different legal definitions for businesses. You’ll need to take different steps depending on the type you choose for your business. A CPA is instrumental in helping you find the business structure that will work best for your particular circumstances.
Choose Your Business Structure
Selecting Your Small Business Legal Structure
Make a business plan
When you’ve investigated your market, set pricing and made projections about your income and expenses, it’s time to make a business plan. Your CPA can help you make sense of budgets, profit and loss statements, and an assortment of best practices in keeping your business’ finances current.
Join associations, trade groups and chambers of commerce
Keeping up with your vendors and other professionals in your business is just as important as keeping up with your clients. Stay abreast of what’s happening in your area, and take advantage of opportunities to learn from others.
Project your personal financial needs
As a business owner (especially a new business), your business and personal finances will be closely related. Your personal needs and expenses should be considered when determining how you need your business to perform. A CPA knows the best ways to draw up a personal budget and monitor your expenses.
Determine startup costs and operating capital and, if necessary, make financing arrangements
You’ll need funds to establish an office, equip it, possibly hire employees, and more. You’ll also want sufficient capital to pay your business’ expenses from month to month. Your CPA will be able to help.
Borrowing Money for Your Business
Plan your startup capital requirements and successfully acquire funding for your new business
Create a revenue projection and pricing structure, then compare it to your projected expenses
Using your market data, create a pricing structure for your offering, and a realistic projection of your revenue for your first year in business. Check this against your projected expenses. Are you expecting a profit, or loss based on these numbers? You’ll want to know how to keep your records, and your CPA is there to help.
Guide to Small Business Record Keeping
Understand laws regulating your business
Many businesses have specific laws that govern how they must run, but all businesses require federal, state and local permits, licenses or registrations. Running afoul of the law can create a significant loss. Avoid it by having your CPA manage your risks.
Talk to a provider of business loss and liability insurance
To protect your business from theft or the possibility of lawsuits, you will need to carry insurance.
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