What You Need to Know About Creating a Company

By Jonathan Bales , last updated October 2, 2011

Starting a company can be a lot of fun, but it is always a lot of work. In general, the most successful companies are those with the hardest working founders. Along the way, you must also develop a solid business plan and make sound financial decisions. Read on for some tips on how to accomplish those tasks to make sure you find as much success as possible when starting your company.

First, you must develop a solid business plan. There is no one business plan that fits all companies, but they all usually adequately describe how the business will run and set the foundation of how everything will work. The basic corporate structure and marketing plan will be included in the business plan. While this task might seem trivial, it is important to have an idea of how your company will be run on a large scale. Thus, the business plan itself it less important than the notion of having an overarching company model.

Next, you might want to try to find some business training. If you are new to the business world and do not have experience starting a company, securing some business training can give you the requisite knowledge needed for success. Without a strong understanding of marketing, finances, corporate structure and so on, your chances of success are minimal. While you always want to have a strong idea of the direction in which you want your new company to go, you might want to acquire business training even before creating the business plan.

Once you have received the proper amount of business training and created a strong plan, you can determine the physical location of your business. Even if you run an internet company, you will need to decide where to place the servers, and determining the physical location of your company is a big step. If you plan to run a company that requires customers to come to a physical spot, the location is crucial in your success. If you need to allocate funds among a variety of categories, it is best to place as much money as possible in securing the best location for your business. If you run a clothing store, for example, it is better to pay "too much" for a shop in the downtown area of a popular city than "saving" on a less trafficked rural area. In the end, you will make more money by investing initial funds in a great location. If you do not need customers to visit you, it is probably best to run a home-based business. The amount of money you can save on rent, electric and so on will be worth it.

After deciding upon your location, you will need to register your business as a sole proprietorship, a partnership or a limited liability corporation. There are advantages and disadvantages to each, and much of the decision will be determined by the structure of your company. After getting a tax identification number and registering the company for state and local taxes, you will need to secure business permits. Once your company is legally able to be run, it will be up to you to market properly and run the business in an efficient manner.

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