Starting a new business can be a very exciting and stressful time of your life. Follow this checklist to ensure that you’re including these important steps in your planning process, before rolling out your new business plan. For a printable version of this checklist, click here.
- Pick the right entity type: Determine the entity type that is right for your business. LLCs, corporations, and partnerships are all viewed differently for tax purposes by state and federal law.
- Spend time researching your potential brand name: Is your name easy to understand and marketable? This research can help protect you from brand confusion if not now and down the road.
- Determine your ultimate business goals: What will your growth strategy look like? Will you borrow money from your friends and family, or depend on investors? These are all important factors to consider.
- Decide on founder contributions: Decide what each founder will contribute to the business in exchange for ownership. This will impact how much equity one founder should have over another.
- How will you fund this business? Finances and accounting can be two of the most tedious and intimidating aspects of running a business. However, with the right research and tools, they don’t have to be. Lawyers and accountants can be a great help for a new business. Looking for additional tips? See our article on Royalty Financing: Getting Funded Without Giving Up Equity, here.
- What will your exit strategy be? A well-constructed exit strategy can help to drive your goals and aspirations for the company. It also gives you a backup plan if things don’t go the way you planned.
- Decide on what agreements are important for your business. It is important to have non-disclosure and non-compete agreements ready before your employees start work. This will help to protect your intellectual property and the work that you have put in behind the scenes of your business.
- Comply with local and state laws. Business license requirements, sales tax, and industry-specific regulations are all important when starting a new business. Failure to comply with these can result in penalties, fees and potential litigation.
- Understand your target customer. It is important to understand who your target market is. This will be a foundational step before you start creating your business’ marketing strategy. If you understand who you are selling to, then you can understand what needs to be done to make your business as profitable as possible.
- Create a website. No matter if you’re a brick and mortar store and online salesperson, it’s important to have an online representation of your business. Many times, websites are the first interaction that a potential client has with a business.
Johnstun Law is the top choice for legal representation by startup and small business owners in the Utah area. To schedule a business strategy session with our attorneys today, call (801) 980-5300.
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