If you intend to start a small business in New York then there is no better time than now. Starting a small business in New York requires a true virtue which is patience and the beginning of every business happens to be one of those toughest times that requires patience.
Venturing into a business in a place like New York or anywhere in particular, you need a step by step guide on how to go about it. In this article we are going to show you the following steps to take when trying to start a business.
Thing to do before Starting A Small Business In New York
Having A Business Plan
In starting a small business in New York, having a business plan is like having a road map that helps you navigate which way to go. You’ll thank yourself for having a business plan cause it helps you plan and keep things in place ahead of time.
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Sit back to do research and explore your business idea, take into consideration your skills, resources and reasons why you want to start your own business. Also consider the chances of the success of your business based on the need and interest of your community. When you fail to plan you plan to fail.
Your business plan should have the following;
- How your product sets itself apart from competitors out there
- How you can attract and maintain your customers
- A hiring plan (if necessary)
- An overview on how you target the market
- Your business ownership and management structure
- What pain point does your business address
- A description of your services or product in addition with pricing
- How much do you need to launch your business idea
- Evaluate your chances of making profit
- How long will it take to breakeven
Have it in mind that your business plan is a living document and aim to keep it as simple and detailed as possible, not forgetting that you can always dive back in and make adjustments and additions as you generate more funds or experience from the business.
Choose A Proper Business Name
Other than doing your job well, of course your business name is among the most important aspects of your business. Your business name points out who you are to your customers, what you value, what you offer and the satisfaction your customers will derives when they patronize your business.
To get started, have it in mind that this isn’t a task you deal with lightly. Make sure the name you choose is available for use across a few platforms.
Search New York Business Entity Database to do a business entity name search through the secretary of states of New York, to be sure the name is not already in use by another New York business because if it is then you won’t be able to register your business.
Running your name through a trademark search on the US Patent and Trademark website is recommended. To ensure that a competing business isn’t using your dream name, it is safe for you to run a google search whether you’re looking to start a small business in New York or elsewhere.
To search for available names you can search the Corporation And Business Entity Database on the DOS Website. Once you check your web domain name and it is available, buy it as soon as possible then you can start garnering traffic immediately and build your business website.
Once these hurdles are cleared get ready for the next phase which is the registration of your business with the states of New York.
Generate A Business Entity And Register Your Business
The next step in starting a small business in New York is crucial, and that is choosing a business entity.
How you’re tasked, your legal protection, your ownership and management determine the business entity you choose. The business entity you choose will also make your registration differ.
A few or more common business structures are sole proprietorship, partnership, corporation and LLCs in New York, out of those structures, LLCs are easy to form, easy to maintain, and provide owners with legal protection.
It is of great benefit that you consult legal or financial professionals to help you determine which type of business structure is best for your particular business.
Also take a look at the new business checklist, to learn more about the cost of formation fee, how to register with the states, their ongoing requirement and what each type of business structure entails.
Get Your EIN And Register For Taxes
Before you start a business in New York, you have to register with New York’s Task Department. It is also highly recommended to familiarize yourself with your local tax requirement and your state, which may be distinguished depending on the type of business you’re running.
Let’s look at an example: Businesses in New York are subject to the city’s excise tax and business income, so any business that sells physical products needs to collect a certificate of authority and sales tax.
Talking to a professional who can break it down for you in simpler English is recommended. You should apply for an EIN with the IRS, because in order to file your payroll tax return or your business’s income tax, you’ll need it.
In order to apply for a business credit card, apply for a business loan down the line, open a business bank account and hire employees you’ll need an EIN. Sole proprietorship is the only exception here.
Obtain Your Employer’s Information, Licenses, Insurance And Permit
Your customized checklist will include information whether you need to obtain a profehttps://financialslot.com/best-business-credit-cards/ssional licensing or permit to start or operate a legal business in New York.
The checklist also provides you with links to your county office and county clerk so you can inquire about your zoning requirement, local licensing and permitting.
At this point, if you plan on hiring employees you need to brush up on your employer’s obligation.
Carrying business insurance such as disability benefit insurance, unemployment insurance and workers compensation insurance are among the requirements.
And in cases where you don’t hire employees, and your checklist is being completed you’ll be provided with a Certificate Of Attestation Of Exemption, which implies that your business is not required to carry any of the aforementioned insurance types.
To protect your property from damage, general liability insurance and professional liability insurance to cover negligence or malpractice suits brought against your practice.
You’ll certainly need to buy some type of coverage, whether it is commercial property insurance or not to protect your business from a host of potential legal claims.
Choose A Business Location
In starting a small business in New York, you’ll need to have a classic taste when choosing your business location and check for local zoning regulation.
Take your time to calculate the cost of running your dream business in your desired location, including utilities and rent before committing to it.
Referring back to your business plan is recommended to evaluate your company’s early month affordability in your desired location. Running your business out or far from your home is one good alternative when opening your business at a new location.
Secure Funds To Kick Start
The bitter truth is that funding becomes challenging because you’re going to need cash to get you off the ground. When you’re ready to seek funds for starting a small business in New York, your first thought shouldn’t be your local bank.
Banks are usually careful/cautious of lending funds for startups. Because new businesses don’t have strong credits required to prove that the business is capable of handling debts.
However most startups make use of the combination of alternative financing methods to get themselves going, which involves borrowing from families and friends who believe in their business and by tapping their own savings.
Most individuals go as far as using a personal loan for business purposes.
Obtain A Business Bank Account
“DON’T MIX BUSINESS WITH PLEASURE” This saying applies to your finances too. Your next step in starting a small business in New York is getting your business bank account.
To track your expenses and income, consider opening a separate business account from your personal account. A separate bank account is recommended to maintain your liability protection for some business types like corporations and LLCs.
The two reasons for separating your personal and business finances is that; it makes bookkeeping very easy to organize and it protects your personal assets in events where your business is sued.
Insurance protects your personal and commercial assets in events of unexpected disaster such as; industrial accident, incidence of mass violence and personal injury.
You can explore the different coverage options, which include general liability insurance to protect you against claims with the help of an insurance agent.
Launch Your Marketing Plan
Marketing your business might seem difficult to deal with, but in reality it can be a real flex on your creativity.
As long as you’re on the go to start a business you can possibly keep your marketing strategies small at the beginning of your business.
You’re well on track on starting a small business in New York as far as your financials and paperwork are in order. Taking the next step on letting people know more about what your new business is all about.
Focus on reaching out to your community.
You are rest assured that the 10 steps revealed to you, if you read carefully will help you in starting a small business in New York. The aforementioned steps can help you establish a strong foundation of your own venture.