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California is considered to be one of the most advantageous states to start a new business. There is more venture capital here than any other place in the country, making it a great place for entrepreneurs. You’ve got just about everything going for you, even before you start.
The success of your business, however, rests solely in your hands. Setting your company up correctly from the beginning will give you a significant advantage over the competition.
First things first: you need a great business idea
There are plenty of reasons to start a business and even more creative ideas to fuel the fire. However, if your business isn’t viable, it will be over before it has half a chance.
What kind of business are you hoping to start? Is it a brick-and-mortar store? Is it a valuable service? Is it an online platform or app that is designed to make life better or more fun for its users? Check and see what kinds of businesses are doing well in your area and do your homework. Find out what the market is demanding and see if you can answer that need.
Create a business plan
A solid business plan is essential for several reasons. For example, if you are looking for financing or venture capital, your lender will want to see it. Additionally, working through all the necessary details will give you a better idea of what you’re up against in terms of the competition.
A business plan will also give you a blueprint that guides the way forward. Adjustments call always be made, but you need to start somewhere. You might want to hire an accountant to help you with financial projections, but much of the work can be done yourself. There are plenty of online tools and templates to guide you, or you can hire a freelancer who specializes in this type of work.
Once you’ve got your great idea and a solid business plan, you’re ready to rock and roll. Now it’s time to take a look at our handy checklist – just to be sure you have covered all the bases:
1. Decide on a business structure
This is an important detail that shouldn’t be decided lightly. Your decision will impact the taxes you pay as well as your personal liability. If you are unsure, you might want to enlist the services of a business attorney to guide you.
Basically, California business structures fall into three categories:
- Sole proprietorship
- LLC (limited liability corporation)
- C-corp
Each has its own pros and cons. It just depends on the type of business you are starting and what level of risk you are willing to take on.
2. Name your company
You will need to check to be sure the business name you choose is available for you to use. This is done through the California Secretary of State office in Sacramento and can be done online.
3. Obtain all business licenses
The type of license you require and the fees you pay will vary. Licenses can be obtained through the California Secretary of State office. You will then need to apply for a federal tax number or employer ID number (EIN) if you intend to hire employees.
If you are a new business in need of a professional business address, virtual office package, or a coworking membership in Palm Desert, reach out to Fusion Workplaces today. We’d love to show you how we can help.
