Checklist Before You Start a Business

TL;DR

A comprehensive checklist for setting up a business, securing funding, and building business credit profiles.

Transcript

so here is the big five right so that I consider this like the master checklist um and it's pretty much an overview of all of those many elements that we went through in class just in like um shorter version so the first and foremost is making sure that our business entity is set up making sure that our name checks out that it is not something that... Read More

Key Insights

• 👨‍💼 Setting up a business entity entails checking the availability of the business name, obtaining an ER number, and conducting a trademark search.
• 👨‍💼 Consider the state in which to operate the business, weighing advantages of business-friendly states like Delaware and Wyoming.
• 🤑 Develop a SBA compliant business plan using provided templates to save money on professional writing services.
• 👨‍💼 Thorough market research is crucial for lenders to understand your business and determine if they want to do business with you.
• 👨‍💼 Address personal credit issues and work on improving credit while establishing the business entity.
• 🈺 Open a business bank account as it marks the start of business operations and allows for the building of a credit history.
• 💁 Ensure consistent information across all platforms and reports to maintain credibility with lenders.

Questions & Answers

Q: What are the essential steps to set up a business entity correctly?

It is crucial to ensure the availability of the business name, obtain an ER number, and check the trademark database to avoid any infringement issues.

Q: How can market research impact securing funding for a business?

Market research demonstrates your understanding of the target market and industry, making lenders more confident in doing business with you. It is important to conduct comprehensive market research to support your business plan.

Q: What is the significance of opening a business bank account?

The day your business bank account is opened is considered the start of your business operation. It establishes a financial history and allows you to build creditworthiness, enabling you to secure funding in the future.

Q: Why is it important to have consistent information across all platforms?

Consistent information, such as business address and contact details, builds credibility and avoids confusion for lenders. It is essential to ensure uniformity in reporting to credit bureaus and other entities.

Summary & Key Takeaways

• Make sure the business entity is set up correctly by checking the availability of the business name, getting an ER number, and checking the trademark database.

• Determine if you will operate in your home state or another business-friendly state, and file the necessary forms accordingly.

• Develop a SBA compliant business plan and conduct thorough market research.

• Create a plan to address personal credit issues and establish a business bank account.