Step One: First things first, you must set up your business corectly!
Step One: First things first, you must set up your business corectly!
So, you're ready to embark on the exciting journey of starting your own small business?
Congratulations!
This mini course is your one-stop guide to navigating the process with strategies that can be used anywhere.
Laying the Foundation: Business Planning
Every successful business starts with a solid plan.
Here's what to include:
Executive Summary: A brief overview of your business.
Company Description: Details about your business's mission, who are you, vision, what will it be when it starts and what will the end goal be, who are you selling to?
Market Analysis: Research on your target market, competition, and industry trends. Columbus has unique demographics and opportunities, be specific to what your followers know you for and will understand.
Products or Services: A detailed description of each of the items wish to offer start with 5 related items, adding items according to plan one at a time.
Marketing and Sales Strategy: How will you convince people to give you a shot? How will you get customers to use your services consistently? How will you market to the rest of the city?
Management Team: Information about your team's experience and qualifications.
Financial Projections: Estimated revenue, expenses, and profitability. Be realistic and consider local costs.
Funding Request (if applicable): How much funding you need and how you plan to use it.
Structuring Your Business: which type is best for you?
Choosing the right business structure is crucial for legal and tax purposes.
Common options include:
Sole Proprietorship: Simple, but offers no personal liability protection.
Partnership: Similar to sole proprietorship, but with multiple owners.
Limited Liability Company (LLC): (recommended) Protects your personal assets from business debts and lawsuits. Popular choice!
S Corporation (S Corp): Offers tax advantages for some businesses.
C Corporation (C Corp): More complex, suitable for larger businesses with plans for significant growth. Consult a legal and tax professional to determine the best structure for your needs, especially considering Ohio's specific regulations.
Holding company: (recommended) is a parent company that owns the assets of other companies (its subsidiaries) but typically does not engage in active business operations itself.
Your E.I.N.
Visit the IRS website and use their online application tool.
The system will guide you through the process, ask for information like your business structure, name, and SSN or Taxpayer ID number.
You'll receive a confirmation letter and your EIN immediately upon submitting your application.
Important: This service is free. Avoid websites that charge a fee for EIN applications.
If you are forming a legal entity (LLC, partnership, corporation or tax exempt organization), form your entity through your state before you apply for an EIN. If you don’t form your entity with your state first, your EIN application may be delayed.
Businesses, organizations and some retirement trusts need an EIN to manage their taxes. Generally you need an EIN to:
Hire employees
Operate a partnership or corporation
Pay sales and excise taxes
Change business structures or ownership
Administer certain trusts, retirement plans and estates
Protecting Your Business: Insurance Essentials
Insurance is vital to protect your business from unexpected events.
Key types of insurance include:
General Liability Insurance: Covers bodily injury and property damage claims.
Professional Liability Insurance: (recommended) Protects against claims of negligence or mistakes in your services.
Workers' Compensation Insurance: Required in most states if you have employees. Your are not an employee, you are a Small business LLC, who will be paid direct with cash or credit as a 1099 contractor.
Commercial Property Insurance: (recommended) Covers damage to your business property.
Cybersecurity Insurance: (recommended) Increasingly important to protect against data breaches and cyberattacks.
Shop around for quotes and compare coverage options to find the best fit for your business and budget.
Banking and Finances: Setting Up Shop
You need an accountant,
but essentially you want to establish a separate business bank account to keep your personal and business finances separate. We promote a Profit 1st approach to bookkeeping, 😁 this is crucial for accounting and legal reasons. You'll also need to choose an accounting system. Many options are available, from simple spreadsheets to cloud-based software like QuickBooks or Xero. We recommend getting an accountant and practicing Profit 1st!
Marketing and Branding: Tell the world
Your brand is more than just a logo: it's the overall perception of your business. Define your target audience and create a brand that resonates with your followers. Consider how do you want Columbus to see you and your business when creating your brand message.
Establish your online presence:
A professional website.
Active social media profiles.
Engaging content (blog posts, videos, etc.).
Local SEO (Search Engine Optimization) to improve your visibility in Columbus search results.
Explore local marketing opportunities in Columbus such as sponsoring community events, partnering with other local businesses, and participating in farmers' markets or festivals.
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