What's Next for your Business after your Big Idea?

Now that we have an idea for a business, what do we do next? We must find out if there is a market for our idea. The two steps go hand-in-hand. What good is a great idea if there is no market for it? In most businesses, we would create a business plan. However, since we are operating an online business, it really isn’t necessary. If you want to be the next Google, then you will need a business plan since you will most likely require some outside capital. But that is a topic for another day. We still must consider two important things even though we aren’t creating a business plan. The first is the aforementioned market analysis. You can’t be successful if you don’t know the potential of your product or idea. The other is competitive analysis. You must accurately assess your competition. You can always look online for some business plan templates. A website like BPlans is very good. Also, you can hire a consultant.

After you’ve decided you have a viable product or service, you’ll need some basic office equipment to get up and running. Set a space in your home specifically for work if you aren’t renting a space. Make sure it’s private and you won’t be disturbed. If you have kids running around, make sure they know you aren’t to be bothered. If you’re providing a service, you’ll also need:

• A computer

• Software: quicken, adobe, Microsoft office, and win. Zip

• Access to the internet

• A printer/scanner, copier/fax combo

That’s pretty much it. Not much is it? You can get started for less than $1,000. If you’re selling a product, then you’ll need a place to store it.

Finally, you’ll need a Federal Tax ID from the IRS. It’s a 9-digit number that identifies your business, kind of like your social security number identifies you. If you are selling a product, you’ll need a resale certificate which requires you to collect and remit sales tax to the government. It would be wise to get a separate business bank account and separate form personal account. PayPal should be fine. If you hire employees, you’ll need to fill out a W-2; contractors will need a W-4. Of course, you will be required to file payroll taxes for yourself and each employee. Be sure to check zoning laws for your home office. Yes, you need the government’s permission even in your own home. Welcome to the world of excessive regulation. Finally, you’ll need a business license from your state and register your “fictitious name.” For example, Joe Smith DBA (doing business as) Joe the Plumber.

Are you ready for the next step?