7 steps to start a creative business
You want to start a creative business, right? But, you have no clue where to start. Just thinking of figuring out the administrative hurdles gives you a headache. The process can be confusing at first and time consuming.
1. Have a plan!
Businesses fail for many reasons but they have one thing in common. A failure to plan! Take the time to research your market and customer. It will help you figure out your startup costs, revenues and profits. Determine what your goals and objectives are and how you will achieve them. This will provide you with a roadmap to operate your business.
2. Pick a name and register it.
Choose a name that reflects your brand and what your business is about. Once you’ve settle on a name, you may need to register it. This applies if you’re not operating your business under your own name. You can register your business at the state or local level.
3. Choose a business’s legal structure.
For tax and legal purposes you need to choose a business structure. Each one has it own tax and legal implications. Business structures include: sole proprietorship, partnership. limited liability company (LLC), corporation, s corporation and cooperative.
4. Register with the government.
An Employee Identification Number (EIN) is your business’ federal tax number. You need one if you have employees or your business is a partnership, LLC or corporation. You also need a resale license or seller’s permit. This allows you to collect state sales taxes.
5. Show me the money!
Without money you won’t be able to start a creative business. The money can be yours or borrowed from family, friends, investors or the bank. Also, get a separate bank account for your business. The IRS won’t be too happy if you use business funds for personal reasons.
6. Choose a location & set up shop.
Find a location or workspace to start your creative business. Buy equipment, materials, insurance and any local permits/licenses you may need. Once you’ve completed this step, you can start creating!
7. Get a website & get social.
All this won’t matter if no one knows your business exists. A website is essential to marketing and selling your creations. You can also use your website to collect emails. Email marketing is a great tool because it is highly targeted.
Social media is also a must have and it is free. You don’t have to be on all the social media platforms. Choose a few that is right for you and your business.