If you have a hobby that brings you joy, chances are you’ve considered turning your passion into a business. Many start their careers by taking a skillset and turning it into something that can earn a steady income. Of course, getting to that point can be a little daunting, and if you’ve never run a business, you may be wondering where to begin.
Fortunately, launching your business can be achieved with a handful of steps and planning. Here are five things you should know when considering launching a small business.
Prepare a Plan
Before any business begins, there needs to be a plan. You may think this step is easy, but not all plans are created equal. If you want to start your dream business off on the right foot, you’ll want to take some quality time and figure out what exactly you want your business to be and how you plan to reach those goals.
So take some time and decide what your business should look like. If you’re launching a retail company, will you have an online store, a storefront, or both? Have you considered the system and website your company will be using? There’s a slew of options, like utilizing a thrift store POS. Chart out every detail and then estimate the finances that go along with what you want.
A good plan will include the scope of business you want to launch, achievable goals, and action steps to obtain them. Of course, you need to include finances in this plan as well like launching an interval fund.
File the Paperwork
How serious are you about running a business? If you want to have the backing and look professional, you should file the necessary paperwork to go with your business. Will you be starting off as a sole proprietor, an LLC, or a corporation? Look at your state’s laws and go to your state’s government website to read up on everything you need to begin your business.
Fill out the paperwork and make sure you have everything ready to begin your dream. You’ll need your federal tax ID if you plan on applying for funding, opening a business bank account, and plenty more. Remember, the structure of your business plays a huge role in the taxes your company will pay, so do your research and choose the one that’s the best fit for you.
Open a Company Account
One of the best things you can do when you plan to open a business is to keep your company funds separate from your personal ones. This is important not only to maintain clean records for tax purposes but for liability as well. Aside from taxes and liabilities, you’ll want your own business account if you expect to seek financing to help you launch on the right foot.
Understanding your finances and what your new business needs will go hand in hand with having your company bank account. You can research local banks, choose an online bank, or more. Take your time, and don’t be afraid to compare bank offers for your business account.
Launch Your Website
Finally, your business needs a face. Think about what aspects your company will need in a website and pick a provider that suits you. Your needs will vary depending on the products and services you plan to give people. A website will help you not only look professional but have a place to direct customers to the newest updates, products, and questions.
Once you’ve got your website set up, take some time to share the love across social media platforms too. The potential customer reach you can gain by advertising is incredible. In fact, creating a business page on your social media accounts is perfect for getting your new company front and center with new customers.
Turning a hobby or skillset into a business is an exciting thing. With these actionable steps, you’ll be well on your way to seeing your dream become a reality.