{"id":5515,"date":"2016-04-04T10:48:00","date_gmt":"2016-04-04T15:48:00","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/starting-a-business\/start-up-basics.html"},"modified":"2024-05-22T00:34:41","modified_gmt":"2024-05-22T05:34:41","slug":"start-up-basics","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/start-up-basics.html","title":{"rendered":"Start-Up Basics"},"content":{"rendered":"\n<div class=\"fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30  wp-container-core-columns-is-layout-9d6595d7 fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30\">\n    \n    <div class=\"fl-section-main fl-page-articles fl-section-main fl-section-main-full-width\">\n        <h1 class=\"fl-no-margin-top\">Start-Up Basics<\/h1>\n<section class=\"fl-gutenberg-byline\">\n    <div class=\"fl-gutenberg-byline-content\">\n                    <p><i>Created by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\">FindLaw&#8217;s team<\/a> of legal writers and editors<\/i><\/p>\n\n                | Last reviewed\n        <time>\n                            May 22, 2024\n                    <\/time>\n    <\/div>\n\n            <div class=\"fl-gutenberg-byline-editorial-note fl-text-sm\">\n            <p>Editorial Note: We earn a commission from affiliate partner links on FindLaw. Commissions do not affect the editorial integrity of our legal content.<\/p>\n\n        <\/div>\n    \n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-legally-reviewed\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Legally Reviewed\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>This article has been written and reviewed for legal accuracy, clarity, and style by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\">FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with <a href=\"https:\/\/www.findlaw.com\/company\/company-history\/editorial-policy.html\">our editorial standards<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n\n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-fast-checked\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Fact-Checked\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>The last updated date refers to the last time this article was reviewed by FindLaw or one of our <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/contributing-authors.html\">contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please <a href=\"https:\/\/lawyers.findlaw.com\/?fli=bylinelink\" target=\"_blank\" rel=\"noopener\">contact an attorney in your area<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n<\/section>\n<p>Starting and managing a business takes motivation and talent. It also takes research and planning. Although initial mistakes are not always fatal, it takes extra skill, discipline, and hard work to regain the advantage. Take time beforehand to explore and evaluate your business and personal goals, then use this information to build a comprehensive and thoughtful <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/business-plan-overview.html\" adhocenable=\"false\">business plan<\/a> that will help you reach these goals.<\/p>\r\n<p>Developing a plan will force you to think through some important issues that you may not otherwise consider. Your plan will become a valuable tool as you set out to raise money for your business, and it will provide milestones to gauge your success.<\/p>\r\n<p><b><i>Form your LLC with confidence.\u202f<a href=\"https:\/\/legalzoomcominc.pxf.io\/c\/4851649\/2115288\/26746?subId1=start-up-basics-in-content\" rel=\"sponsored noopener\" data-cta=\"Biz LZ - LATL Callout\" data-cta-url=\"legalzoom.com\" target=\"_blank\">Our trusted partner LegalZoom has packages starting at $0 + filing fees.<\/a><\/i><\/b><\/p>\r\n<h2>Getting Started<\/h2>\r\n<h2>1. List your reasons for wanting to go into business. Some of the most common reasons for starting a business are:<\/h2>\r\n<ul>\r\n<li>Self-management<\/li>\r\n<li>Financial independence<\/li>\r\n<li>Creative freedom<\/li>\r\n<li>Full use of personal skills and knowledge<\/li>\r\n<\/ul>\r\n<p>Starting and running your own business has its rewards, particularly the satisfaction of having built something greater than yourself. But entrepreneurs typically put a tremendous amount of time and resources and rarely take extended vacations. It&#8217;s important to determine <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/is-entrepreneurship-for-you.html\" adhocenable=\"false\">whether entrepreneurship is right for you<\/a> before you do anything else (see also, <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/do-you-have-what-it-takes.html\" adhocenable=\"false\">Do You Have What it Takes?<\/a>).<br>\r\n<\/p>\r\n<h2>2. Next determine what business is right for you. Ask yourself these questions:<\/h2>\r\n<ul>\r\n<li>What do I like to do with my time?<\/li>\r\n<li>What technical skills have I learned or developed?<\/li>\r\n<li>What do others say I am good at?<\/li>\r\n<li>Will I have the support of my family?<\/li>\r\n<li>How much time do I have to run a successful business?<\/li>\r\n<li>Do I have any hobbies or interests that are marketable?<\/li>\r\n<\/ul>\r\n<h2>3. Identify your business niche. Research and answer these questions:<\/h2>\r\n<ul>\r\n<li>What business am I interested in starting?<\/li>\r\n<li>What services or products will I sell?<\/li>\r\n<li>Is my idea practical, and will it fill a need?<\/li>\r\n<li>What is my competition?<\/li>\r\n<li>What is my business&#8217;s advantage over existing firms?<\/li>\r\n<li>Can I deliver a better quality service?<\/li>\r\n<li>Can I create a demand for my business?<\/li>\r\n<\/ul>\r\n<p>Regardless of your interests, knowledge, and abilities, any new business venture must <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/finding-a-niche.html\" adhocenable=\"false\">find a niche<\/a> in which to operate. Then, <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/evaluating-your-new-small-business-idea.html\" adhocenable=\"false\">evaluate your general idea<\/a> to determine how you can bring something new or better to the table.<br>\r\n<\/p>\r\n<h2>4. The final step before developing your plan is the pre-business checklist. You should answer these questions:<\/h2>\r\n<ul>\r\n<li>What skills and experience do I bring to the business?<\/li>\r\n<li>What <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/choosing-a-legal-structure.html\" adhocenable=\"false\">legal structure<\/a> will I use?<\/li>\r\n<li>How will my company&#8217;s business records be maintained?<\/li>\r\n<li>What <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/liability-and-insurance\/insurance-policies.html\" adhocenable=\"false\">insurance coverage<\/a> will be needed?<\/li>\r\n<li>What equipment or supplies will I need?<\/li>\r\n<li>How will I compensate myself?<\/li>\r\n<li>What are my resources?<\/li>\r\n<li>What <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/start-up-financing.html\" adhocenable=\"false\">financing<\/a> will I need?<\/li>\r\n<li>Where will my business be located?<\/li>\r\n<li>What will I <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/choosing-your-business-name.html\" adhocenable=\"false\">name my business<\/a>?<\/li>\r\n<\/ul>\r\n<p>Once you&#8217;ve gotten this far, you&#8217;re ready to figure out <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/start-a-new-business.html\" adhocenable=\"false\">how the business will be created<\/a> and operated. See FindLaw&#8217;s <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/business-start-up-checklist.html\" adhocenable=\"false\">Business Start-Up Checklist<\/a> for more tips on how to get started.<br>\r\n<\/p>\r\n<h2>In Conclusion<\/h2>\r\n<p>Your answers will help you create a focused, well-researched <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/creating-a-business-plan.html\" adhocenable=\"false\">business plan<\/a> that will serve as a blueprint for business operations, management, and capitalization. Once you have completed your business plan, review it with a friend or business associate. When you feel comfortable with the content and structure, review and discuss it with your banker. The business plan is a flexible document that should change as your business grows.<\/p>\r\n<h2>Need Legal Help?<\/h2>\r\n<p>Starting a business requires focus, dedication, and a certain amount of luck. But while attorneys may seem costly at first, getting legal help can mean the difference between a successful startup and a failed one. Contact a <a href=\"https:\/\/lawyers.findlaw.com\/business-commercial-law\/\" adhocenable=\"false\" target=\"_blank\" rel=\"noopener\">business and commercial law attorney<\/a> in your area to get some peace of mind.<\/p>\r\n<p>FindLaw&#8217;s extensive <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business.html\">Starting a Business<\/a> section provides additional resources to help you get your venture off the ground and running, including a printable <a href=\"https://www.findlaw.com/static/fi/images\/public\/pdf\/startingabusiness_miniguide.pdf\" target=\"_blank\" rel=\"noopener\">mini-guide to starting a business<\/a> (PDF).<\/p>\r\n<p>Looking to start your own business? Use FindLaw&#8217;s <a href=\"https:\/\/www.findlaw.com\/forms\/business-formation.html\" class=\"diy-biz-txt\">DIY forms<\/a>&nbsp;to get a legal business entity set up in minutes.<\/p>\r\n<div class=\"was-this-helpful\">\n    <div\n            class=\"was-this-helpful__question-container\"\n            aria-labelledby=\"was-this-helpful__question\"\n            role=\"group\"\n    >\n        <span\n                id=\"was-this-helpful__question\"\n                class=\"was-this-helpful__question fl-text-lg-bold\"\n        >Was this helpful?<\/span>\n        <button\n                class=\"was-this-helpful__button fl-text-sm\"\n                aria-label=\"Yes\"\n                value=\"yes\"\n        >\n            <span class=\"was-this-helpful__button-text fl-text-bold\">Yes<\/span>\n            <i class=\"was-this-helpful__button-icon\">\n                <svg width=\"22\" height=\"22\" viewBox=\"0 0 22 22\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n              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