10 Startup Tips

Here are 10 tips that the editors of Cover have gathered at recent business meetings for starting a new business:

  1. Outline your company’s mission statement, goals and define your corporate culture.
  2. Outline your business plan. It is critical to have a detailed business plan for the first 60 days, the first six months and the first 12 months.
  3. Create a three year budget, because your potential equity investors and debt lenders will demand it.
  4. Find an accountant geared to small business to help you select the best business structure for your operation; C corporation, S corporation, LLC or another structure.
  5. Set up a legal entity and register the company name with the state.
  6. File for state and federal tax ID numbers.
  7. Find an attorney geared to small business issues.
  8. Do a company name search to avoid conflicts with existing firms.
  9. Get legal advice on shifting personal assets to protect them in case the business does not thrive as planned.
  10. Carefully plan and implement employees/partners compensation plans. If the plans are too generous up front and you need to cut back on them later, it can be a disaster.