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You have a great idea for a business — now what? Unless you know what to do with it, a great idea won’t get you far. This article outlines a few steps you can take right now to get yourself heading in the right direction.

Decide What You’ll Need in a Location

Will your business need its own physical location? Could you use a virtual storefront? What are your options?

So many people waste money on things they don’t need, mostly because they don’t realize there are other choices. For example, a lot of businesses don’t need a brick and mortar store. Some service providers never see their customers faces…so no one would ever know if they were working out of a shiny new skyscraper or an old dusty basement.

If you don’t need a store to deliver your product/service to customers, then figure out what you do need. Sometimes all it takes is a strong internet connection and a firewall. More and more companies have found ways for their employees to work entirely from home.

Don’t be afraid to think outside the box.

Photo by Nastuh Abootalebi on Unsplash

Quantify Your Financial Needs

Once you know your location needs and the related insurance and rental costs, you’ll have a much better idea of how much you need to get started. This is a good time to take everything you’ve decided so far and put it down on paper— enter the business plan.

The main purpose of a business plan is to convince someone to loan you the money you need to get started. After explaining how the company will generate a profit, the business plan should provide a breakdown of everything you need to get things off the ground. Costs tend to add up quickly, so it’s important that your business plan is concise, and thorough. Not long…thorough.

You need to convince banks and lenders that you’ve done your due diligence. It’s important to convey that you know what you’re getting yourself into and that their investment will be safely returned to them, with interest.

Think About the Type of Legal Entity Your Business Will Be

Will your business be a sole-proprietorship, LLC, or corporation? This is definitely something to discuss with an attorney before making a final decision. But in order to prepare for that conversation, it’s important to understand the context of the decision.

How do you feel about sharing control of the business with another person(s)? Depending on how the business is set up, you could have anywhere from a little bit of influence to complete control over the daily activities and direction of the company. Keep in mind, in the future you might not have the same amount of energy or enthusiasm to put toward the business as you do right now.

How much personal liability are you willing to take on for the business? Certain forms of business protect their owners from personal liability better than others. Corporations, for example, are separate legal entities that can be sued independently of the people who own and operate them. Sole proprietorships, on the other hand, are inseparable from the owner as far as courts are concerned. How your business is structured is especially important in an industry that’s more prone to lawsuits.

Get Your Employer Identification Number (EIN)

Even if you won’t have any employees at first, there’s a chance you might eventually, so go ahead and apply for an EIN on the IRS’s website. It only takes a few minutes, and it’s free.

While you’re at it, check out your state’s department of revenue website too — it can be a helpful resource for information on licensing requirements, business taxes, and sales tax.

Once you’ve registered your new business with the state and applied for a federal EIN, you’ll have two of the biggest administrative hurdles behind you.

This can actually be a fun part of the process — it makes everything feel less like a dream and more like a reality.

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Utilize Friends and Family Where You Can

Even though the internet can be an incredible source of information, getting honest feedback from someone you know and trust is an even better resource.

Do you know anyone who’s already involved in the industry you’ll be competing in? Have them tell you what it’s like. Try to consider everything from a big picture standpoint; information about your suppliers and vendors can be just as valuable as information about your competitors.

Has anyone in your network applied for a small business loan? Ask them about the process. There are a ton of resources available to small business owners, especially if you’re female, or a minority.