3 Must Do’s for Every Emerging Entrepreneur
By Marcus Lansky ~
Starting a business is exciting, but it isn’t all glitz and glamour.
Aspiring entrepreneurs must tackle several not-so-thrilling tasks, like structuring and financing their businesses, in addition to setting up their own accounting systems and buying insurance policies.
The Entrepreneur’s Startup Checklist
Unless you have fundraising experience, raising money isn’t easy or enjoyable. According to the US Chamber of Commerce, it’s one of the biggest challenges of starting a business. Here are a few reasons why:
- You need to find the right financing opportunity for your business. Several potential financing options include angel investing, crowdfunding, and venture capital (VC).
- You must be cashflow positive. Having positive cashflow increases your chances of receiving funding.
- Large banks are on the rise. Smaller banks are more likely to work with aspiring entrepreneurs.
Funding a startup is challenging, but consulting online fundraising services can help you achieve real results.
1. Choose the Right Legal Structure for Your Business
Along with funding your startup, you’ll need to choose the right legal structure. Several common structures include limited liability companies (LLCs), corporations, partnerships, and sole proprietorships. Sole proprietorships are the simplest to form but more difficult to finance. Funding an LLC or corporation is much more achievable, and you’ll also receive liability protection and tax benefits.
Considering an LLC or corporation? You can save time and money by using an online formation service. ZenBusiness, for instance, can tackle the following tasks:
- Forming your LLC or corporation. ZenBusiness simplifies the entire process of preparing and filing your business formation documents.
- Appointing a registered agent. All LLCs and corporations need a registered agent. You can either appoint yourself or another trusted party.
- Creating an operating agreement. What is an LLC operating agreement, exactly? This type of document outlines your business rules and succession plan. It also separates your personal assets from your LLC. With an operating agreement, you’ll increase your chances of getting the funds you need.
2. Create an Accounting System
In addition to arranging for funding and forming a legal entity, when starting a business you’ll need to build an accounting system. For many business owners, it’s helpful to delegate these tasks to an experienced accountant.
The accounting pros at Xero, for example, can help you apply for loans and write business plans. An accountant can also offer advice for opening a business bank account. If you need help setting up a bookkeeping system, an accountant can help with this task as well.
3. Hire a Nonprofit Fundraising Consultant and Other Professionals
Now that you’re familiar with some of the more mundane tasks of launching a business, it’s time to get the ball rolling! Start by calculating your startup costs and hiring an online fundraising consultant. Then, compare legal structures and meet with an accounting professional.
Next, you’ll need to register your business with the appropriate agencies. You may need to insure your business as well, but this will depend on the type of business you’re launching.
Now go for it!