How to Open a Company
- 1). Write a business plan. A great idea for a business is not a business plan. A business plan is a complete analysis and road map for starting and operating a business. A plan must be based on operational, demographic and financial facts, and must take into account the best and worst case scenarios. The federal Small Business Administration (SBA) offers courses and mentors to help new business owners research and write a business plan. Contact 1-800-827-5722 for information on SBA programs and offices in your area.
- 2). Get financing and apply for loans. You'll need capital to purchase equipment, hire employees and pay for initial advertising. The SBA will recommend approved local lenders. Conventional loans may be available in addition to special loans such as those under the 7a Loan Program, which are guaranteed by the SBA in case of default.
- 3). Choose the right business location. Pedestrian traffic, automobile traffic and ease of access are important factors when selecting a location that will require walk in customers. Website businesses must choose a website location called a domain name. Domain names should be unique and not used by another business.
- 4). Another step in choosing a location is to review local zoning laws that relate to businesses. A home business may have zoning restrictions prohibiting the manufacturing of products at home. A business with a warehouse may have problems because its location is zoned for retail use only. Contact the local city government for local zoning restriction prior to making a final decision.
- 5). Apply for business licenses. Be sure to follow regulations specific to your business. States, counties and city governments impose licensing and permit regulations that vary according to the type of business and the location. For example, a retail liquor store in Illinois requires multiple liquor licenses from the state and city where it is located. You should contact your local state, county and city governments for information.
- 6). Purchase or lease equipment and supplies necessary to run the business. You should have determined what equipment is necessary and its approximate cost while creating your business plan.
- 7). Hire employees to run the start-up business. Be sure to research and follow applicable federal, state, county and city employment rules and regulations. Writing a business plan will help uncover any hiring or employment issues pertaining to specific business models.
For local employer requirements contact your city, county and state governments. Information on federal employment laws is available through the US Department of Labor's Office of Small and Disadvantaged Business Utilization at 1-888-972-7332. - 8). Implement your marketing plan--which is part of any good business plan--and open the business. Once a location has been chosen and applications for permits and licenses have been filed, you should set a grand opening date.
Determine if your business model needs a soft opening, or an unadvertised early opening of the business that allows you to iron out problems before the grand opening. For example, a restaurant may hold a two week long soft opening during which customers get special discounts or rewards if any part of their meal is disturbed or ruined because of an operational mistake.
Source...