So you’ve got an idea and a plan to make it profitable…but now what?

Depending on your desired business structure, the requirements for starting your business will vary. However, there are several questions that every entrepreneur, regardless of business structure, should consider when starting their business.

1. How Do I Make My Business Legal?

First and foremost, you want to ensure your business is legal before you begin operations.

Licensing and registration requirements for businesses vary by state and industry. Most states require small businesses to at least register their name with a state agency. A visit to your local city hall should provide you with a definitive answer on how to register your business in your state.

Next, make sure your business will not unfairly mimic the name and services of another company. Operating a business that is substantially similar in name to a competitor is likely to result in a cease and desist letter and lawyer fees.

Many wise entrepreneurs consult with small business lawyers to ensure their startup complies with the law.

2. How Much Do I Pay Myself?

Pay yourself enough to survive, but not more than your worth to the business.

This can be a difficult balance to strike. Consider yourself from both the employee and employer perspective. How much would your business pay someone else to do the same work you are doing?

There are various complex equations one can use to determine their worth to a company. For help calculating your worth to your business, contact one of our experienced professionals.

For planning purposes, it is advised that you pay yourself a flat salary instead of a percentage based on monthly performance.

3. How Do I Find Good Employees?

The easiest way to find the best employees is to pay the best salary. However, a small business in the startup phase cannot dish out too much cash on employee salaries.

Startups who want to attract and keep the best talent must find creative ways to compensate their employees. There are many ways to entice talent to join your team other than cash. Some creative, non-cash perks include offering work-from-home days or flexible working hours.

A popular method for startups is to pay employees a smaller base salary but offer shares of stock for each quarter the employee stays with the company or meets certain milestones. If an employee has a financial stake in the company’s performance, they are more motivated to help the business excel. Of course, this method is only available to those small business owners who are comfortable with a shared-ownership structure.

Every small business startup will need to consider the target audience of employees and cater to their desires in the workplace to win over their hard work and talent from a more established, competitor company.

These are just a sampling of the many questions a small business startup will face. For more guidance on creating your startup, give us a call to see how we can help.