- 1). Developing a strategic business plan is the most overlooked area in starting a new business. Prepare a small-business plan that shows how much working capital you will need, estimates profit and loss and projects at least a five-year span. The business plan should also show your risks as well as rewards. There are companies that can help you create a business plan or you can join organizations such as SCORE (Service Corps of Retired Executives) that volunteer their time to help you succeed in business.
- 2). Compiling working capital can be done in different ways. The most effective way for a start-up business to have working capital would be working a job on the side; you don't have to pay this back. Some other ways include business loans, lines of credit, personal bank loans and family loans. Many bank loans yield high interest rates so be careful.
- 3). Establish an EIN number (Employer Identification Number) with the IRS. The EIN number is your business social security number. You will need this number to open lines of credit, apply for different bank accounts, or other business-related accounts.
- 4). Choose a name for your business. This will be your Doing Business As name, often referred to as a DBA name. You can register your DBA name with various companies, but the price range starts at three hundred dollars. The DBA gives you the right to do business a legal entity in your state. You may use your person name as your DBA if you are running a small business
- 5). Obtain a business license that pertains to the business you are starting. Contact your local city hall or clerk of courts to see what kind of business you are in need of licensing.
Source...