steps to starting a business

Steps to Starting a Business

It is essential for every entrepreneur to know the steps to starting a business. Going over the steps of starting your business makes sense right now since it’s tax season. The reason being is that you may have already gone through the steps to opening a business, and they can be deducted on your taxes.  As we go through each step, you can either complete something you may have missed, or dig up the payment info you have from the previous year.  Expenses that are ordinary and necessary to your business are either depreciable (meaning a portion is written off over a number of years), or they are fully deductible.  In either case, this can help to lower your taxable income, and maybe even get you more back in your tax refund. Get your business off the ground with this simple steps.

steps to starting a businessSimple Steps to starting a business

Step 1:  Analyze your passions, talents, and professional experience…..

This most likely won’t lead to a deduction on your tax return unless you bought any self-development courses.  But it’s one of the vital steps to starting a business. In business, the people who succeed are the ones that live and breather their business. In a fiercely competitive marketplace, you’re most likely to succeed in areas where you are more energized, experienced and intuitive than your competition.

Look for areas that pop up in all 3 categories.  For example, I have a passion for investing, work with finances, and love to invest on my free time.  For could lose myself for hours on the computer, and I could talk your ear off about it.  You may seem obsessed to people who aren’t interested in your field.  But for those who are looking for solutions, all that value based content is going to start grabbing attention.

 

Step 2: Key Word Research….

This isn’t about making a website.  It’s about getting into the minds of your potential market.  Just because you’re passionate or good at something, doesn’t mean that people want to pay you for it.  Just because you have a unique idea, it doesn’t mean it’s relevant to people’s priorities.

As far as tax deductions go, any sort of subscription to keyword analysis software is relevant to your business operations.  So are subscriptions to professional publications related to your industry. Not only is it vital to understanding your market, but you will help lower your taxes in the process.

What you’ll want to look for are problems that people are already paying money to solve. An area that has already attracted a fair amount of competition.  Looking for keywords and the competition are crucial steps to starting a business. This will let you know that there’s money to be made.

 

Step 3: Research your competition.

Go on to Google and type in the keywords that best target your market.  Look at the top 3 organic search results.  Take notes on what other keywords you can find in their content.  Look at their products or services.  Look at the method by which the bring people to the purchase decision.

After that, start looking for customer interaction with those sites.  Look for comments under their posts. Look for reviews pertaining to those sites.  Search Amazon for their products and see what people are writing in the reviews.  This will give you an inside look at where people are looking for improvement.  This is how you can begin to set yourself apart from the competition.

 

Step 4: Make a business plan.

This is where steps 1 through 3 come together into one plan.  In reality, it’s the identity you give business.  You’re going to want to come up with a

  • A Vision Statement- What place will your business have in the world?  What would the world be missing in its future if you don’t succeed?  Look up the vision statements of other businesses similar to yours.
  • A Value Statement- This is about who you are. What are your values. It’s not just about making profits.  It’s the code of honor you will be adhering by as you pursue your goal.  What principals will you live by when catering to your market?  What culture will you build for your team who works with you?  What is important that you give back to the community.  This is vital for the longevity of your business.
  • A Mission Statement- This will be the GPS of your business. It will let you know when you’ve reached your financial destination, and will let you know when you’ve strayed from your path.  A mission statement needs to be more specific than your vision statement.  Who are you helping?  How are you helping them?  How are you going to meet your goals for growth and profitability?

There are other components like goal setting, financial projections, etc.  But the bottom line is that your business plan is your guide to keeping the course.  There are books, courses, and even consultants that can help you build a business plan that meets your needs.  And those expenses are usually either deductible or depreciable for tax purposes.

 

Step 5: Start out on the right foot with the proper business entity.

One of the first things my real estate mentor taught me is that the more money you make, the bigger the bulls-eye on your back becomes for lawsuits.  Discrimination, injury, breach of contract, etc.  Attorneys don’t take on cases when they can’t get paid.  So the large and more accessible your assets are, the more motivation they have to try and sue you.

Our legal firm set us up to have what they call a corporate shield.  That means if something happens to your business, your personal assets are protected.  And likewise, if something happens to your personal entity, your business can continue unaffected. It gets way more strategic than that. But the idea is that you need to protect yourself as you continue to build your wealth.

 

BLAST OFF!

Anything worth doing is worth doing right.  You’ll thank yourself for all the groundwork you lay upfront when your business outshines all of your competition. The majority of startup entrepreneurs skip this due diligence entirely. Get to know the steps to starting a business. Set yourself up by designing a business that works right out of the gate.

Need help with business, investing, or finances.  Get on our mailing list where we discuss multiple strategies and income streams that can maximize your investing and your business.

 

About The Author

herbertkoehler

I am a college drop out who found my passion as an investor. I love the many facets of finance, investing, and business. But even more than that, I love sharing what I learn with others.

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