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ZayFlex Group

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Hunter Roberts
Hunter Roberts

Building Business

A business plan is a dynamic document that serves as a roadmap for establishing a new business. This document makes it simple for potential investors, financial institutions and company management to understand and absorb. Even if you intend to self-finance, a business plan can help you flesh out your idea and spot potential problems. When writing a well-rounded business plan, include the following sections:

building business

If you start a solo business, you might consider a sole proprietorship. The company and the owner, for legal and tax purposes, are considered the same. The business owner assumes liability for the business. So, if the business fails, the owner is personally and financially responsible for all business debts.

A corporation limits your personal liability for business debts just as an LLC does. A corporation can be taxed as a C-corporation (C-corp) or an S-corporation (S-corp). S-corp status offers pass-through taxation to small corporations that meet certain IRS requirements. Larger companies and startups hoping to attract venture capital are usually taxed as C-corps.

Before you decide on a business structure, discuss your situation with a small business accountant and possibly an attorney, as each business type has different tax treatments that could affect your bottom line.

Make it memorable but not too difficult. Choose the same domain name, if available, to establish your internet presence. A business name cannot be the same as another registered company in your state, nor can it infringe on another trademark or service mark that is already registered with the United States Patent and Trademark Office (USPTO).

Legal requirements are determined by your industry and jurisdiction. Most businesses need a mixture of local, state and federal licenses to operate. Check with your local government office (and even an attorney) for licensing information tailored to your area.

There are many bookkeeping services available that can do all of this for you, and more. These services can be accessed online from any computer or mobile device and often include features such as bank reconciliation and invoicing. Check out the best accounting software for small business, or see if you want to handle the bookkeeping yourself.

Before you fund your business, you must get an idea of your startup costs. To determine these, make a list of all the physical supplies you need, estimate the cost of any professional services you will require, determine the price of any licenses or permits required to operate and calculate the cost of office space or other real estate. Add in the costs of payroll and benefits, if applicable.

An insurance agent can help determine what coverages are appropriate for your business and find policies from insurers that offer the best rates. An independent insurance agent represents several different insurers, so they can shop around for the best rates and coverage options.

Customers use online directories like Yelp, Google My Business and Facebook to find local businesses. Some city halls and chambers of commerce have business directories too. Include your business in as many relevant directories as possible. You can also create listings for your business on specific directories that focus on your industry.

To scale your business, you need to grow your customer base and revenue. This can be done by expanding your marketing efforts, improving your product or service, collaborating with other creators or adding new products or services that complement what you already offer.

Think about ways you can automate or outsource certain tasks so you can focus on scaling the business. For example, if social media marketing is taking up too much of your time, consider using a platform such as Hootsuite to help you manage your accounts more efficiently. You can also consider outsourcing the time-consumer completely.

You can also use technology to automate certain business processes, including accounting, email marketing and lead generation. Doing this will give you more time to focus on other aspects of your business.

To rank the best states to start a business in 2023, Forbes Advisor analyzed 18 key metrics across five categories to determine which states are the best and worst to start a business in. Our ranking takes into consideration factors that impact businesses and their ability to succeed, such as business costs, business climate, economy, workforce and financial accessibility in each state. Check out the full report.

The best business structure for your business will depend entirely on what kind of company you form, your industry and what you want to accomplish. But any successful business structure will be one that will help your company set realistic goals and follow through on set tasks.

The cost of starting a business will vary depending on the size and type of company you want to create. For example, a home-based business will be less expensive to start than a brick-and-mortar store. Additionally, the cost of starting a business will increase if you need to rent or buy commercial space, hire employees or purchase inventory. You could potentially get started for free by dropshipping or selling digital goods.

The best way to get a loan for a new business is to approach banks or other financial institutions and provide them with a business plan and your financial history. You can also look into government-backed loans, such as those offered by the SBA. Startups may also be able to get loans from alternative lenders, including online platforms such as Kiva.

Business building is the top priority for organic growth at companies during the COVID-19 pandemic, and incumbents are launching new businesses with ever greater frequency, according to our new global survey.1For the purposes of this research, we define business building as the creation of new products or services for which a company does not have an existing footprint, or the building of completely new business models. The findings suggest that companies that prioritize business building tend to grow faster than their peers, respond with greater resilience to volatility and economic shocks, and, as they gain experience building businesses, see more success from it. But not all companies succeed: only 24 percent of new businesses launched in the past ten years are viable large-scale enterprises today.

To shed light on the differences between outperformers and also-rans, our survey included more than 800 company executives across a range of industries, sectors, and geographies. So far as we know, this was the first at-scale research to explore corporate business building. The survey revealed that an impressive 52 percent of executives consider business building a top-three (or higher) priority for growth. We also found that a small set of companies enjoy success rates two times higher than those of high-potential start-ups (24 percent versus 8, respectively).2As a proxy for the success rates of high-potential start-ups, we considered the share of start-ups admitted to a leading incubator that went on to reach a Series C investment round or beyond. The experience of these companies clarifies the winning approach to launching and scaling new businesses. As more companies adopt these successful practices, a new wave of innovation could arise from not just entrepreneurial efforts but also intrapreneurial ones. That would boost organic growth and improve the prospects of companies looking to jump into the top tier of performance.

Only a small segment of companies capture most of the growth from business building: of the viable large-scale businesses built in the past ten years, respondents report that 66 percent of them were created by only 20 percent of incumbent companies. These leaders say that this approach to growth helps them meet shifting customer expectations, protects them against industry disruptions and economic shocks, and increases their organizational agility (Exhibit 4).

Meanwhile, most companies have yet to see their business-building efforts bear fruit: only 24 percent of the new businesses in big corporations become viable large-scale enterprises, even as respondents say they expect the success rate to rise in the future. Businesses that cannot scale up their operations encounter a range of barriers to success, from insufficient time and resources to a lack of operational freedom from the core business. But the following two reasons were cited most frequently by the less successful business builders:

Commenting on the business building they were most familiar with, 30 percent of failing businesses cited unexpected disruptions in the market and business environment as the biggest reason these news businesses fell short of expectations. This might seem intuitively obvious. In business, after all, just about the only certainty is that the future is uncertain and will bring unforeseen challenges that are difficult to plan for.

Business building is all about reaching scale: significant and profitable customer penetration in a target market. Underperforming business builders were half as likely (23 percent) as high performing ones (52 percent) to have a strategy for acquiring customers profitably at scale.

Business building can be learned. Low as the success rate might be, our survey shows that companies that have launched at least four new businesses in the past ten years were upward of twice as likely to generate returns of five or more times their investment than less frequent business builders were. This suggests that business builders learn from experience and can even improve their rate of success over time (Exhibit 5).

Part of this success results from a portfolio effect. Instead of betting on a single new business, leading companies build a series of businesses, diversifying risk and generating above-average returns. Meanwhile, they build the capabilities needed in the core of the company to launch and scale new businesses successfully. About two-thirds of the large-scale enterprises built in the past ten years were developed by companies that took a portfolio approach and successfully built more than one large-scale enterprise. 041b061a72


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