Do you think you have a unique business idea? Are you interested in opening a small business? Do you think you’ll need a small business loan to fund your business?
If you already identified your business idea but not sure how to begin your business, you can start by following the checklist below.
1. Have a business plan
You can’t start a business if you are not prepared. A business plan is necessary if you want your business to succeed.
A business plan is a blueprint that will guide you to the business you desire. It’s a formal document containing the description, purposes, and sales items for your business. It is also beneficial to include information such as your target audience and the industry.
Banks and lenders may also require a business plan before lending you funds.
2. Plan your finances
A crucial part of starting a business is to have enough funds. There are a few ways to finance a small business if you can’t self-fund an entire startup.
A way to fund your business is to get a small business loan. Small business owners can borrow loans from banks, but it may be difficult for new business owners to secure one.
Opening a business credit card account is another option. However, it is not advisable to depend on credit cards, as it can damage your credit score if you don’t pay off your credits.
3. Select a business structure
A legal business structure is required when starting your business.
There are different types of business structures you should be aware. These business structures have effects on your tax liabilities, income reporting, and personal protection.
Some of the business structures include sole proprietorship, partnership, limited companies, and limited liability partnership (LLP).
4. Get your business a name
Selecting a good name for your business is crucial as it is the first impression for your future customers.
Before registering your business’ name, you have to check if it’s still available. Once you decided the name, you can register your business name.
5. Get your business licenses and permits
For your business to operate, you will need a license or permit.
Depending on the type of business and your situation, there are a variety of permits and license you can apply. So, make sure to do your research!
6. Set up your accounting system
Even if it’s a small business, you need to keep your company organized by having an accounting system. It is important to keep track of where the money is going so you can report it to the government.
There are several options to manage your accounting system. If you don’t want to handle your accounting system manually, you can hire a bookkeeper. Or, you can use digital accounting software that will help you lessen your burden.
If you follow this list, you’ve already covered the basics of establishing a small business. However, it’s important to remember that success doesn’t happen instantly. Be passionate and stay consistent with your work, and the chances of success increases.
Need help with funding your business? Visit https://www.rhbgroup.com/products-and-services/business/business-banking/sme-banking if you are interested in a getting loan for your small business.