1. Write a Business Plan Before Launching a New Small Business
An elaborate business plan is the foundation of a functional business, as it acts as a guide through each stage of starting and developing the business. With a clear roadmap, it is easier to navigate through the new route of entrepreneurship.
A business plan is a tool you will use to attract future partners and funding, as interested parties can cross-examine your perspectives and feel confident with returns on investment with you. There are two categories of business plans commonly used by start-ups:
Traditional Business Plan Format
That contained detailed and comprehensive information about every step in the business development plan and is often used by lenders and investors to analyze your start-up.
Lean Startup Plan
A lean startup business plan briefly focuses on the critical business elements only. Lenders and investors are more likely to ask for more information after going through your lean startup plan.
Lean startup plans are often a visual representation of the company’s tradeoffs and use a few elements to explain your company’s value proposition, customers, infrastructure, and finances.
For a comprehensive business plan, follow these steps:
● Exploiting the different market gaps that accommodate your business idea
● Design your ideal market—complete with needs, budgets, goals, etc.
● Validate your idea by describing all the logistics needed to run the business effectively.
Your business plan should clearly define all the opportunities you have discovered, a clear mission, attainable and measurable goals, and deadlines for each milestone.
2. Choose a Business Structure When Launching a New Small Business
The business structure you choose for your startup determines the business’s daily operations. A good business structure should give you the right balance of legal protections and benefits. You will then need to decide on your business structure before undertaking any registration process for the business.
There are five primary business structures that you can choose from, including:
Sole Proprietorship
A sole proprietorship is a business structure where the government gives you complete control of your business without registering as a formal entity. There is no difference between personal and business assets and liabilities. The government will grant you a trading name, but you will be liable for the business debts and commitments.
Partnership
A general partnership allows two or more people to conduct a business together. The partners operate the company according to an established partnership agreement that dictates all the roles, responsibilities, loss and profit allocation, and other business managerial details.
Corporation
A corporation business structure allows the shareholders to elect a board of directors who oversees the managerial aspects of the business. The board of directors is liable for business ratios and finances. The different types of corporations include:
- Nonprofit corporation
- B corp
- C corp
- Close corporation
- S corp
Limited Liability Company (LLC)
An LLC lets you exploit corporation and partnership business structures equally by protecting your assets from business liabilities. You have access to business profits and losses without going through corporate taxes. You, however, need to pay self-employed taxes towards social security and Medicare.
Cooperative
A cooperative business structure is centered on protecting the interests of its members and those who use the services. Earnings and profits are distributed across all shareholders. Thus, you can become a user-owner by buying shares for launching a new small business.
3. Go Through All the Required Registration Processes
There are several legislation processes you have to undertake before conducting business legally in Texas, including:
● Getting a registered agent who will be in charge of service of the processes such as legal notices, official government notices, and other essential documents on behalf of the business
● Register your business under your preferred business structure
● Register a trademark with the Texas Secretary of State
● Obtain an Employer Identification Number (EIN) and a Federal Tax ID Number
● Open a separate bank account for your business
● Lastly, get all the needed authorizations, certifications, licenses, permits, or registrations (according to the industry you are targeting) from the Texas Business Permit Office (BPO)
Proper registration and documentation of the processes secure your business from external interference and gain protection from all the relevant bodies in case of power disruption. Maintain compliance by completing all renewals and reports on time to avoid collision with the law. Keep up with compliance requirements depending on your business type by keenly following government updates.
4. Network With the Right People When Launching a New Small Business
Forge good relationships by leaning on the local support system backed by the Governor’s Office of Small Business Assistance and the Business Permit Office. These offices assist SMEs in Texas by advocating on their behalf, education assistance, and entrepreneurial technical support.
The government offices act as a point of convergence for startups by offering various support services such as keeping up with permissions, regulations, and licensing compliance, resources for small business referrals, and information on ongoing small business webinars and events. You can easily access any support you need by scheduling a call with the Small Business Assistance Team through the Governor’s Small Business Resource Portal.
Besides the government support, mingling with people in the same industry as your business will help you learn the inside ropes of the industry. Be your brand ambassador and market yourself through professional networking.
Surround yourself with great minds, including mentors, and hire positives at that level. Cultivate a culture of positive criticism, open communication, and growth right from the business’s inception.
5. Stay Ahead of the Curve
Remember the milestones and goals you set in your business plan? Follow up with them, beat the deadlines, and challenge yourself to be more productive. Make informed decisions that will positively reinforce your business in the long run.
It is important to insure your startup, regardless of its size. Texas law does not require any form of insurance to run a small business. However, protect your venture and those working under you by signing up for the appropriate insurance covers.
Define your brand with proper documentation and marketing for you to gain traction faster. Also, keep your eyes focus d on your mission and study trend to help you keep up with the changing times.
Are You Launching a New Small Business in Texas?
Having a few tips on how to start a business is not enough to create and maintain a business. The Southern Careers Institute business administration program is, indeed, a perfect course to help you create and run a business by impacting you with:
● Basic business financial management skills
● Strategies to start, grow, and market your business
● Hands-on business and communication skills
Contact us today for more information on our business administration program and how it will help you in your entrepreneurial journey.
