Setting up a business might seem daunting, but it is not hard if you know what to do. While it depends somewhat on the type of business you want to start, most businesses are easy to set up within 24 hours. Making a lot of money is everyone’s dream. It is easy to set up a business, but you need to have the right mentality and the fortitude to push on even when things are not going smoothly.
How do you go about setting up a business in 24 hours? There are a few simple steps to achieving this.
The importance of research cannot be over-emphasized. You cannot just wake up one day and decide to start a business without research. Business is about finding a vacuum, and filling it. Find your niche and do all the necessary research.
Research the market trends, the market prices and any relevant information on the particular type of business. Find out who your competitors are and what they are offering, then try to do more and differently. This will be the most important aspect, because it will inform how you run the business and how likely it is to take off. Technology has made research easier than ever, because you can find all the necessary information online.
2. Develop a business model
Organisation is a major asset. To set up a business in 24 hours, a business plan is not what you need. A business plan is a document that highlights the course you expect your business to take in the future. To set up a business in one day, you need to create a business model, which is more realistic and hands-on. A model identifies the company’s plan on how it intends to generate income, and make profits as well.
The business model identifies your client base. It also pinpoints how to get the business off the ground fast, which in this case is 24 hours. For those who don't have time to create a model, consider outsourcing this task. You will find a talented individual here on freelancer.com, which will help you locate and engage a professional to create a business model in the shortest time possible. Since you will later need a business plan, the same freelancers are available to help you draft one. But first things first.
3. Find a name
This is a no-brainer. You definitely cannot start a business without a name for it. The first step is looking for a unique business name that is also easy for clients to remember. Think outside the box, and come up with one that easily identifies your intended business.
Most people expect to come up with an amazing name for their businesses and agonize for a long time over it. The longer you dilly-dally in name searching, the longer you will take in starting the business. Keep it short and simple, and you are good to go.
4. Get your EIN
EIN means Employer Identification Number, a federal tax number that identifies any business. But you do not need the EIN if you do not intend to have employees, or plan to expand to a corporation or a partnership. That said, it is still important to get one. It is free and this way, you do not expose your Social Security Number to identity theft. If you do not have an EIN, your business’s identity is your Social Security Number.
5. Register and acquire a business license
Having done this, the next step is to register your trade name if you will not be operating under your own name. Most localities require registration, and the registration is done in minutes. A business license is a necessity, and it only takes a short time to get it done.
As advised earlier, use your EIN for privacy while registering. While at it, you will get a request to provide an estimate of your annual receipts in gross. Do not worry so much about this, it is merely an estimate of what you expect to earn.
6. Fill any tax forms necessary
Find out which tax forms and permits you will need. Some areas will require you to fill out a business-personal property tax form. In some areas, regulations differ. If you work from home, you do not need to fill this form if the equipment (computer, desks or printers) is pre-owned. If you purchase the equipment during your first business year, you will list them in the business-personal property tax form the following year.
You can acquire a certificate of resale if you deem it necessary. The certificate is also a seller’s permit. It allows you to collect tax on any products sold. There is no sales tax charged on services. You can fill out these forms online.
7. Open a business account
It is crucial that you separate your business finances from your personal. This makes it easy to track how you spend money, and whether you are making profits or losses. Mixing your personal and business finances is also likely to get you in serious trouble with the IRS, something you certainly do not want!
Open a business account using your EIN, making sure you only do business transactions with this account. You might want to open an account with a credit union than a bank as it provides much better rates and deals.
If you need to take a loan in the future, a bank might end up frustrating you. The endless and strict requirements required by banks are more likely to favor large and established businesses. A credit union will give you much better deals and rates on any loans taken out.
8. Spreadsheet account
Do not worry yourself about setting up sophisticated spreadsheet accounts like Quickbooks. The best thing at this point is to set up a simple spreadsheet that documents money in and out.
At this early point in the business, bookkeeping is as simple as ABC. All you need is two columns - revenues and expenses - with any subsequent columns adding up as you go along. Instead of wasting time and money setting up sophisticated systems, make do with what is available, and instead, inject that cash into the business.
Remember, at this point, you barely have any data to enter, so having such a spreadsheet defeats the purpose. Grow the business, get some money in, then you can consider installing other systems. It is like gathering a group of people for a meeting with no agenda - somewhat useless and a complete waste of time and resources.
The ancient saying, “The journey of a thousand miles begins with a single step,” makes a lot of sense. But not making that single step to starting your dream business is tantamount to never completing the journey.
While it may seem that the process of starting a business is an uphill task, it is possible to start a business in 24 hours, if you are willing to try. Technology has made everything easier, and you do not have to spend frustrating hours lining up in offices asking for information and obtaining permits.
The first ingredient to a business is identifying a need or a vacuum, and then working towards filling it. The minute you find a way to meeting this need, you will always have customers to buy your product or service. Competitors may provide the same or at least a similar service, but you have to find a way to stay a step ahead.
You must first meet all legal requirements, and true to word, 24 hours later you will be in business!
Have you had any experience on how to start a business in 24 hours, or what seems an impossibly short time? Do you have any pressing questions to ask? Feel free to post them in the comments section below. We would love to hear from you!