starting a business: what to know - legalzoom · 2016-12-13 · starting a business: what to know...
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Starting a Business: What to Know
You have a great business idea and lots of enthusiasm, but
like most new entrepreneurs, you may not really know what’s
involved in starting a business, or even where to begin. Learn the
basics about what you need to get going, including business plans,
branding and trademarks, financing, and where to go for help.
Your Business Plan
A business plan is a roadmap for your business goals and how you intend to reach them. It’s a great tool for finding out if you have a viable business idea, and it can help you identify obstacles and determine how you’ll overcome them.
A business plan should answer these sorts of questions:
• What will your business do?
• What is the demand for your product or service?
• Who are your customers, and what will you do to attract them?
• Who are your competitors, and how will you be better or different?
• How much will it cost to start and run your business?
Establishing a Unique Identity
As you develop your business plan, think about how you will brand your business, or establish a unique identity, that you can market to customers.
Your business name is a key component of your brand, but choosing a good one can be trickier than you’d think. You must consider the marketing angle—but there are also legal concerns. A comprehensive name search can help you eliminate names that present legal issues BEFORE you spend money on marketing materials.
Other ways to establish your identity include getting a website address, and developing a short “elevator pitch” that you can use to quickly explain your business concept to anyone that you might do business with.
Business owners who
skip the planning
phase can make costly
errors that could have
been avoided if they’d
written a business plan
or sought professional
advice. Don’t make
that same mistake—
put your business on
a path to success.
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LegalZoom is not a law firm or a substitute for an attorney or law firm and does not provide legal advice or services.
Logos and Tag Lines
Part of your brand might also be a
unique logo that you use on your
website, signs, labels, social media
accounts or business cards. Tag lines
(like Nike’s “Just do it.”) or unique
product names are also an important
part of brand identity.
Legal help is here
Call now or visit us online(855) 993-6439
www.legalzoom.com
Call us to learn more about our business services.
Available Resources
You can find help through the Small
Business Administration website and
most public libraries. Your local Small
Business Development Center or SCORE
chapter can also be good resources for
business planning.
Finding the Money
Your business plan will help you determine how much money you need to get off the ground and to sustain the business until it makes a profit—but you can’t get started without access to cash. Some possible sources of funding for a new small business are:
• Your own savings or a home equity loan
• Friends or family. This might be a gift, a loan, or an investment in exchange for a share of your business
• Small business loans through a bank or credit union
• Microloans through a special microlending program
• A crowdfunding campaign using a service like Kickstarter
• Future employees or outside professionals might work for free in exchange for shares of the company
• Venture capital or angel investors. This gets a lot of press, but is not realistic for most small businesses
Your business plan and elevator pitch can help convince family members or lenders that you have a strong concept and a viable business idea that is positioned for success. There are risks and rewards for each type of financing, so it’s wise to get legal and tax advice before signing any financial paperwork or agreeing to give others a share in your business.
Getting Help
Starting a business raises legal, financial, marketing, and intellectual property issues. You shouldn’t expect to be able to figure out everything on your own. Here’s who can help:
• A business lawyer can advise you about choosing a business entity type and a name, registering a trademark, and various legal issues relating to shared ownership of a business.
• A tax professional can advise you on the best type of business entity from a tax standpoint, as well as the tax consequences of various financing options.
• A branding consultant can help you decide how to name your company and position it as a distinct brand.
• A trademark lawyer can help you find out if your business name, logo or tagline might be eligible for trademark protection.
Deciding to start your own business is an exciting time. Taking things one step at a time and asking for help will keep you on track and allow you to make the best decisions possible.