Now is a great time to take the plunge in to entrepreneurship. When the economy weekend, interest rates, as well as the cost of goods and services made starting a business a much more cost effective endeavor than in years past. Beware, though. Many have started a business only to later fail. Often, this is due to a lack of a clear plan. We’ve assembled five key steps to follow when forming an LLC.
Make a Business Plan
We’ve all heard that every good venture needs a plan and forming an LLC is no exception. A business plan is not only essential for you personally but a bank, angel investor, or anybody else who may have an interest in your business will want to see your formal plan as a way to evaluate the potential profitability. The United States Small Business Association has a variety of templates available on their website which will assist you in creating this very important document.
Location, Location, Location
You’ve heard it before but the key to starting your business and seeing it thrive is to have the right location. It won’t be the cheapest area of your town or city and there’s a good chance that you won’t be able to find it on your own. Start your business in your community and request the services of a commercial real estate agent who is recommended by other business owners. Use your knowledge of your community to evaluate as well.
If your business will be an online business, the correct the web address as well as appropriate advertising is key to success. Any successful virtual business has somebody who is highly knowledgeable in search engine optimization.
Register Your LLC
Registering your LLC is essential to shielding your personal assets should your business fail or have legal litigation filed against it. This is easily done for a very small amount of money by taking advantage of an online business registration service.
Finance Your LLC
Once you have formed your LLC, you will most likely need financing. The Small Business Association has a variety of government backed loans that may help you gain the capital that you need to buy equipment and pay for the many other expenses that come with forming an LLC.
Educate and Network
No new information here. To do anything at the highest level, you must have professional level knowledge of the business that you’re entering. You also have to have the same level of knowledge in the area of basic entrepreneurial skills. Read articles, go to local entrepreneurial education sessions, make friends and network within your new industry and remember that regardless of how successful you become, you never know enough for tomorrow. Your journey is sure to be exciting.