Starting a business in California can be achieved by following a seven-step process.
Table of Contents
Step 1: Devise a business plan
The most important and crucial step for starting a successful business in California is planning. Trying to launch a business without a plan could prove to be detrimental. The plan will need to cover your target market. This detail will list whom you plan on selling or providing a service to, noting that too much detail is never an issue. Then you need to list your competition, who exactly will pose the greatest threat or competition to your business and more importantly what sets you apart from your competition. You will also need to identify a market need; specify which problem you intend on solving that no other business ever has. Listing your milestones are also crucial, noting what you plan to achieve as well as what has been achieved, setting goals are always important. Another important factor to consider is the market plan, outlining what the marketing budget will be as well as how your focus will be divided. As time progresses you will see how both the milestones and marketing plan evolves, which is inevitable, but having an initial strategy in place always makes the process so much easier.
During this stage, the business should also consider creating its USP (unique selling proposition). Just as the business plan the USP intends to concisely describe the mission of your business.
Step 2: Register your California business
You will now need to register the business with the state of California. Noting that before this can be done you need to determine upfront what business structure you intend on forming; LLC, S Corporation, C Corporation or Sole Proprietorship.
Step 3: Determine business licensing and tax obligations
It is during this step of the process that you make sure that your business is fully compliant with all federal, state and local government bylaws. Ensuring that you meet the requirements is a smart business move, this avoids any unnecessary surprises and also eliminates any chances of being issued with any fines.
Step 4: Separate your assets
Ensuring that you have a dedicated business banking and credit accounts are essential when wanting personal asset protection. As a wise business practice, it is advisable to establish the business as an independent entity, which allows for personal asset protection. Mixing your assets with those of the business will hold you liable for any lawsuits that the business should face in the future.
Step 5: Fund your business
Businesses probably do not realize it, but there are tons of funding available in California, but the approach taken is not usually a one-size-fits-all scenario. Before committing to a funding method it is wise to consider, what will the ownership structure of the business be? What is the nature of the product? What to anticipate your sale forecast to be? What is the current level of your financial security? What is the state of your credit?
Business owners who would prefer to maintain control of the business then should not consider the option of an angel investor, as often angel investors will often want to seek partial control of a business. Another route to consider is selling off your assets to help fund the business, this is especially effective for businesses that do not have a high-value of assets that they can part with.
Step 6: Build your brand
During this step of the process where you start building your brand. Considering what your logo will be, the layout of your website, as well as what colour scheme you will follow.
Step 7: Market your business
By now all the tasks should be under control, so the biggest task is marketing. You need to consider how you plan on marketing your business. This is the ideal opportunity to think of which platforms will be utilized, also who will be responsible for this role, the sooner this is considered the better. Ensuring the success of the marketing of your business there are some fundamentals to keep in mind, be mindful of what colour scheme you opt to go with, colours can impact on the first impression of customers. Be sure to stand out from the rest, opt for something different. Often costs will impact decisions, but in this instance ensuring that your business comes across as legitimate and professional counts for way more. As often, a picture can tell a thousand words, first impressions are usually what matters most.