Starting a business involves planning, making key financial decisions, working with the right people, and completing a series of legal activities. Taking the right steps can make the difference between your business succeeding or failing.

If you are considering setting up a new business, read these SMART steps below.


What Type of Business Do You Want to Start?

Market research will tell you if there’s an opportunity to turn your idea into a successful business. It’s a way to gather information about potential customers and businesses already operating in your area. Use that information to find a competitive advantage for your business.

You have to study the market trends and demands to select a business activity you wish to set up. It is important to understand the market and region where you wish to set up your business.

Ask yourself these questions: Is there a demand for the products or services you wish to provide? How niche is your business? What is unique about what you want to do in the business? How feasible or profitable can your venture be? Once you answer these questions, you prepare the ultimate blueprint, and you can go about putting these plans into action.


Where Do You Want to Setup Your Business?

Your business location is one of the most important decisions you’ll make. Whether you’re setting up a brick-and-mortar business or launching an online store, the choices you make could affect your taxes, legal requirements, and revenue.

These are also known as jurisdictions with their own set of laws and regulations regarding the kind of business activity you wish to perform. These zones also cater to different business needs, and you must select the zone that suits your business needs.

Many businesses look to expand their businesses, especially in emerging markets such as India and China. Dubai is one of the fastest-growing cities in the world. The UAE is known all over the world for its well-equipped, safe, secure, and beautiful infrastructure when it comes to office space.

Setting up your business there can be a good option. It is advisable to hire an agency to help you with office space in Dubai, business licenses, tax registration, and other legal formalities.


What Type of Business Structure Will You Choose?

The legal structure you choose for your business will impact your business registration requirements, how much you pay in taxes, and your personal liability.

It is important to choose the correct legal structure for your business. The business structure you choose influences everything from day-to-day operations, to taxes and how much of your personal assets are at risk. You should choose a business structure that gives you the right balance of legal protections and benefits.

Below is a list of the different types of entities.

  • Limited Liability Company
  • Sole Proprietor
  • Partnerships
  • S-Corporation
  • C-Corporation

In addition, you will want to choose your business name. It’s not easy to pick the perfect name. You’ll want one that reflects your brand and captures your spirit. You’ll also want to make sure your business name isn’t already being used by someone else.


Do You Need Any Business Licenses or Permits?

There are many types of licenses you need based on your profession. Do you want to work as a financial advisor? An electrician? An engineer? An architect? Make sure that you understand what you need and get the necessary education or training required.

Keep your business running smoothly by staying legally compliant. The licenses and permits you need for your business will vary by industry, state, location, and other factors. Here are the most common types of licenses.

  • Commercial License
  • Professional License
  • Industrial License
  • Tourism License

Along with getting your company’s license, it’s time to make it legal and protect your brand. If you’re doing business under a name different than your own, you’ll need to register with the federal government, and maybe your state government, too.

The next step is to get your federal and state tax IDs. You’ll use your employer identification number (EIN) for important steps to start and grow your business, like opening a bank account and paying taxes. It’s like a social security number for your business. Some — but not all — states require you to get a tax ID as well.


Do You Need Funding?

It costs money to start a business. Funding your business is one of the first — and most important — financial choices most business owners make. How you choose to fund your business could affect how you structure and run your business.

Your business plan will help you figure out how much money you’ll need to start your business. If you don’t have that amount on hand, you’ll need to either raise or borrow the capital. Fortunately, there are more ways than ever to find the capital you need.

Every business has different needs, and no financial solution is one-size-fits-all. Your personal financial situation and vision for your business will shape the financial future of your business.

  • Fund your business yourself with self-funding
  • Get venture capital from investors
  • Use crowdfunding to fund your business
  • Get a small business loan
  • Use Lender Match to find lenders who offer SBA-guaranteed loans 
  • SBA investment programs

Conclusion

These are just a few of the important steps you need to take to make sure your business is set up properly. The key is to develop a reputable brand, whether it be a product or service so you can grow your business.

Your business plan is the foundation of your business. It’s a roadmap for how to structure, run, and grow your new business. You’ll use it to convince people that working with you — or investing in your company — is a smart choice.

Your business plan will help you figure out how much money you’ll need to start your business. If you don’t have that amount on hand, you’ll need to either raise or borrow the capital. Fortunately, there are more ways than ever to find the capital you need.

Lastly, find good mentors and choose who you work with wisely. They can give you great advice and help you make SMART decisions as you continue to grow your business.