Ready to Start Your Own Business? 5 Things to Do Before You Begin

Rose McKellen

September 27, 2013

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Starting a small business isn't for everyone. If you're entrepreneurial-minded, you might be getting yourself geared up to become your own boss, but you'll need to make sure that you have everything in order before you quit your day job. After you've committed to starting a business, you need to take the appropriate steps. Here are five things you should have in order before you start marketing to customers or promoting your brand.

#1: Invest in Building the Skills You'll Need to be a Successful Entrepreneur

Opening a small business will require time and money, but you'll also need the core skills that all business owners need. You don't necessarily need to have a Master's degree in business administration to become a distinguished entrepreneur. If you want to start a thriving and viable enterprise, you'll need to learn how to set budgetary restrictions, how to market, and how to handle operations effectively. There are business courses offered by organizations, colleges, and vocational schools to help prepare you before you begin your endeavors.

#2: Create Your Business Plan

A business plan includes details on what you do, how you will raise start-up capital, who you will market to, how you will expand your reach, and more. Preparation and planning is key to avoid failure, and if you have a well thought out plan you can identify the hurdles you'll face before you face them.

#3: Decide Where You'll Operate

It's generally easier for small business owners to start a home-based business in the beginning. If you're opening a retail location, it's in your best interest to choose an affordable location with a short-term lease. Make sure that you invest in security, like an Irvine home automation system, so that you can protect your business property, valuable data, and merchandise.

#4: Get the Right Permits and Licensing

In most cities and municipalities, you need a business license to do business in any industry. In some cases, you may need a permit. Make sure to apply for your tax ID number, register with the state, and apply for all of the licensing you need before you open your doors.

#5: Get Insurance

You'll need to build a comprehensive insurance portfolio to ensure you and your customers are protected. Meet with a commercial insurance agent and discuss the risks and what type of coverage will reduce risks. You'll need property insurance and liability insurance at a minimum. If you are looking for the most competitive rates, make sure that you inform your agent of your Vivint home security system and other property features that will lower your premiums.

Starting a business, no matter how small or large, will require making some important decisions. Be sure that you get all of your paperwork filed, take care of the financing and legalities, and get to work. If you put in the work before you open your doors, you can improve your chances of succeeding.