Business Planning
Developing a Business Plan
A great business starts with a great idea - filling an unmet need, tapping a new market, bringing new technology to improve an old process, etc. From there, a business plan will help you organize your plan of attack and how you will turn this idea into a feasible venture. A great resource and outline for writing a business plan can be accessed by clicking here. You will need your business plan to help you set goals and operate your business, as well as to show potential sources of capital including banks and investors.
Choosing Business Partners
Who will help your business become a success? In what areas are your skills inadequate for the best interest of your business (legal, design, technology, marketing, accounting, manufacturing, hiring, etc.)? Where will you find your team? Be careful not to bring in friends or relatives just because they need jobs - that’s a good way to put a heavy strain on a relationship. Independent professional service firms can be considered partners as long as they’re committed to your business vision.
Picking a Legal Structure
While sole proprietorships and general partnerships are the easiest legal structures to set up, they don’t provide any personal asset protection like C-Corps, S-Corps, LLCs, and Limited Partnerships. The idea of starting a business that can put 100% of your personal assets at risk is not a smart one. To determine the best legal structure for optimal taxation and protection of your assets, talk to a corporate attorney who can show you the best structure for your specific situation. If you want to get a basic understanding of the legal structures, the best resource I’ve found is Own Your Own Corporation by Garrett Sutton, Esq. This book covers legal structures from the perspective of tax sheltering, ownership and financing flexibility, and personal asset protection – the main reasons to use a separate legal structure.
Analyzing Your Competition
Who could compete with you for your customer base? It’s an excellent idea to do a thorough analysis of possible competitors before you go further in your venture. Explore the Internet, phone books, your chamber of commerce, and ask everyone you know (and some you don’t). Find out who’s out there, what their strategy is, and why your business will succeed alongside your competition (or put them out of business). Remember that for some types of businesses, competitors don’t have to be located in the same city, state, or even country to take customers away from you.
Naming Your Business
This topic usually breaks entrepreneurs into two categories: those who had a name picked out from the start, and those who have no idea. If you’re one of the creative ones with a name already chosen, there are a few things to check before going forward with it. Most importantly, has anyone registered a trademark to conduct similar business in the U.S.?
There are two ways to unofficially check: 1) search the Internet for the company name to see if anyone is using it, and 2) search the trademark database online: click here, click on “New User Form Search” and type in your idea for a name. If anyone has registered that name (not counting pending applications), you can see this information in the search results. Ultimately, you should consult a trademark attorney before committing to a name. They will be able to tell you if you can legitimately conduct business under that name.
Additionally, you should check the availability of a corresponding domain name for your website. Specifically, if you can get the .com suffix of your company name, you’re in great shape. You can check the availability of domain names at many websites such as register.com, godaddy.com, and networksolutions.com.
How Can Vanivo Help Your Business Planning?
Many times, business owners suffer a creative block or biased viewpoint when approaching portions of this phase. Fortunately for those business owners, our creative department is always full of ideas and innovative viewpoints to compensate. Our creative business consulting service can help you get a fresh perspective for your business.
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