If you want to become one of the thousands of Michigan residents who run their own small business, you are in excellent company. Some respected Midwestern and national brands have their birthplace right here in the Great Lakes State.
Of course, for every business that thrives, there will be others that fail or struggle along for years before closing. To achieve success, you need a good idea and a lot of motivation. You also need to take the right steps early in the process or risk complications and delays.
Every idea requires a different approach, but there are some basic steps that will benefit almost every entrepreneur about to embark on their own business endeavor.
Draft a business plan and estimated budget
Exploring what it will cost to start and run your business and what you think operations will involve can help you be more realistic about your approach to the new company. The process of drafting a business plan often requires that people think at length about the long-term prognosis for the industry and also their goals for the company. Budgets can help you be realistic about the return to expect on the money and time you invest in the business.
Check the industry for competition
When you have an idea, there’s a strong chance that other people could have come up with a similar concept before you. Before you start spending money on the development of a business concept, it’s important to familiarize yourself with the competition. Figuring out both local and large-scale industry leaders can help you explore whether you can compete in the industry and generate enough profit to keep your business open.
Decide on the best business structure for your needs
Michigan gives you many different ways of structuring your new business, and it’s important that you consider their benefits and drawbacks.
Forming an LLC does take more effort, but gives you more protection if your business fails or if you ever face a lawsuit. You could also choose a partnership or even a more complex corporation. If your intention is to provide something back to the community, you may even be able to incorporate as a not-for-profit organization. Exploring the benefits of each of these forms can help you decide the right one for your future company.
Taking the right planning steps early in the process of starting your company will make it a safer and hopefully more successful endeavor.