You have a great idea for your startup company. The idea of going into business for yourself has been brewing for a long time and you are finally ready to jump. The name of your company is key.
When it comes to choosing a name, you shouldn’t become obsessed but at the same time, you should understand that the most appropriate name is an extremely important part of your business and can definitely be a contributing factor when it comes to the success of your business. If the name that you have chosen for your startup is not the best, you may want to rethink that and rename the company.
Another thing to bear in mind when choosing a name is that you only have to pay for the name once and you will own it forever. It is important to be satisfied with what you have chosen so that you don’t have to go through the hassle at any time in the future of having to choose again. Additionally, if you have to change the name of your company, the longer you wait, the more expensive it will be.
There are many thoughts and factors that are important when it comes to choosing the name for your startup:
A description of what you do: The name should reflect what you do and what your startup stands for. A simple name is usually the best choice because it is easier than a more complicated name to remember.
A legal name: It is very important that you make sure that no other company has the same name as you have chosen and that the name is not trademarked to that other company. An easy way to find out if your name is unique is to go to .
A single-meaning name when spoken: Make sure that whichever name you choose cannot be interpreted more than one way when spoken out loud. An easy way to tell this is to tell someone the name of your startup and ask them to repeat it to you. You will be able to tell easily if there is any ambiguity in the name.
A single-meaning name in the search engines: If the name that you have chosen sounds like some other word, it will be harder for people to distinguish the name.
Your domain name can be obtained: When you try to register your domain name, you should have chosen a name that has not been registered by anyone else yet and can be purchased by you for a reasonable price. Your domain name should be simple, memorable, and should not have any punctuation in the middle of it. You want people to be able to type it easily. Also regarding the domain name, make sure that you get a name that has extension and . The reason why this is so important is that when people type in your company name and hit enter, it will go directly to your website. It won’t happen …
Bootstrapping a startup means looking for every opportunity to cut expenses. Thus, it is common for first-time business owners to skip over registering their business, assuming that running it as a sole proprietor will be sufficient. While it’s true that sole proprietor status is the least complicated to manage — less paperwork, fewer filing requirements, the most flexibility — the reality is that the benefits of organizing as an LLC far outweigh the complications.
LLCs Provide Protection
The structure of an LLC or corporation exists for one primary purpose — to separate business and personal liability. With sole proprietorships, all of your personal assets, including your house, cars, and savings, are potential targets for any lawsuit or judgment against the business. Don’t assume that none of your dedicated customers would ever sue — if you make an error that costs them dearly, their attorney will turn to you for reparations.
In addition, businesses can struggle for all sorts of other reasons, such as a lagging economy, that are out of control of the owner. With the protections of limited liability, the business can take the fall without significantly impacting the owners. Sole proprietorships and partnerships can leave the owners holding the bag, and paying off the business’s debts (or worse, filing personal bankruptcy)…outcomes that will affect you for years.
LLCs Provide Opportunities for Your Business
Particularly in the case of independent contractors, securing an LLC can open doors not available to sole proprietor independent contractors. The reason for this is that many large companies secure independent contractors for months or years at a time, and hiring a individual, sole proprietor, into those positions can put the larger company at serious risk. If you have LLC or corporate status, there is no doubt that the hiring does not meet the standards of being an employee, because the presumption of independence is evident in the entity status, thus the company is more likely to hire your company over a sole proprietor.
LLCs Open the Doors to Growth
Operatinga business as a sole proprietorship not only limits your options, but also can limit your thinking. As a solo owner, there is no easy way to bring in investors for growth and expansion. With an LLC or corporations, your options are wide open for including partners as you see fit. You can build the business’s credit separately from your own, enter into contracts, and own property in the name of the business, presenting a more professional image. And, your own ideas of how far the business can go can be influenced by the formality of organizing as a limited liability entity. Something about formalizing your operations inspires a lot of folks to think bigger than just working for yourself.
Sure, there are valid arguments for selecting sole proprietorship status. Whether you organize as an LLC or corporation, there are some fees and paperwork required, usually once or twice per year. And, new business owners are often required to provide personal guarantees for bank or …
This article speaks directly to your personality. I don’t discuss planning and budgeting but you should be aware that you will need to plan, plan, plan but don’t get caught up in “paralysis by analysis” and no matter how good your business plan you will not receive money from “angel investors” or banks unless you’ve already started your business and have a proven track record with a large upside – which you don’t have if you are a business startup.
First, here’s the quick synopsis of opening your own business
Register with your county or state as a business.
Start doing business.
Really? That’s all there is to it? Yes, that’s all there is to it. Unfortunately, its so easy that many businesses fail because they do exactly like what’s above. There are a few skills that complement success and generally you’ll either have those skills or will develop those skills over time. Here’s what you can expect.
You’ll work crazy hours.
You’ll be a salesperson.
You’ll always worry about your business.
You’ll become an expert on many things because you can’t afford to hire experts – especially in the beginning.
What many don’t realize is that you are always a salesperson. If you don’t like sales then having a business of your own is not for you. If you don’t have an outgoing personality you’ll need to develop one quickly. Whether you’re set up a booth at a county fair, open a retail mall location, or work from home you will be a “people-person”. You will network with others, attend events, and more. Sounds like fun? For many it is but remember while you’re somewhere having fun someone has to run the business. Here come the crazy hours.
If you’ve got customers or clients then you’ve got projects that you haven’t been working on while you’re out selling yourself and your company. So now after the fun is over you will begin your day’s work. Remember that while you were out networking you were creating your future (and probably spending money) but now you’ve got the present to think about. How do you pay your bills? What about the customer that is late with the payment? Now the worrying begins.
You’ve got bills to pay and customers to satisfy. You may have a payroll to meet or at least you’ll need to make ends meet. Is there enough cash flow or have you extended credit because you are new and the thought of work, any work was too much to pass up? How do you collect on unpaid invoices without offending and thereby cause other problems? Oh the fun never ends.
Lastly (for this article), you’ll need to learn how to be an expert. There’s nobody to do the day to day accounting but you or hopefully, a significant other so you’ll become a bookkeeper and bill payer. There’s nobody to design graphics for your marketing materials so you’ll learn software programs and design principles for creating brochures, flyers, …
Whether you are still developing your business idea or already know exactly what you want to do, it is important to define the best distribution channels for your product, for your customers, and for you. The distribution channel is the way your product gets to your customer. Traditionally, businesses relied on a single distribution channel. These days, the most successful startups use multiple routes to reach a broader customer base.
For some products, the route to getting it into customers’ hands is self-evident. For specialized, service-only ventures, you or your employees will personally deliver to the client, either on-site or at your place of business. Selling retail products, on the other hand, allows multiple options for distribution — online sales, brick-and-mortar storefront, direct sales through sales reps, etc. Consider the distribution routes used by your closest competitors. Are they using the most effective channels? Is there any way to modify or improve on the standard methods that will still be appropriate for your product?
Your target customers also play an important role in the distribution channels you select. If you are selling directly to the end user, you probably have more options than if you are targeting distributors to market your product. Think about it from your target market’s perspective. What is the easiest way for them to access your product? Under what circumstances are they most likely to be looking for what you offer? If it is easier for your customers to buy from you than your competitors, they will come.
Your own work style and personality are also relevant in considering distribution channels for your product. If the idea of spending your days chatting up strangers is distressing to you, then a brick and mortar storefront is probably not the best option. If spending countless hours in front of your computer sounds agonizing, avoid any wholly web-based options. Be honest about your preferences — one of the greatest advantages of starting your own business is the freedom to choose how you get work done. Don’t sabotage yourself by choosing a business that requires you to be out of your comfort zone for every sale.
Many modern startups have a broad range of choices about how to distribution their products. Consider all three factors — your product, your customers, and yourself — before deciding the best routes for your business. If possible, consider developing multiple distribution channels within your startup, even if you only start with one initially. The more ways your product can get to your customers, the bigger your potential market.…