by Kimberlee Leonard
Being the chief executive officer of your own business is a dream come true for those who don’t want to answer to anyone and have the energy and fortitude to persevere through business obstacles. While this avenue isn’t for everyone, every day new entrepreneurs seek employment freedom by opening their own businesses. In 2008, the Small Business Administration reported more than 627,000 new businesses with almost 600,000 business closures. Starting your own business and serving as CEO is simple, but building a business that endures early growth hiccups and withstands difficult economic periods requires diligent work and discipline.
- Write a business plan that develops a business idea into a viable product or service company that understands its target market and how to reach those buyers. Research industry, demographic and small business statistics through resources such as the SBA, the U.S. Census Bureau and your local Chamber of Commerce.
- Forecast start-up costs, annual operating costs and potential revenues. Check with leasing companies for office or retail space. Speak with contractors and developers regarding costs of renovations, product development and engineering. Estimate how many employees you will need and the costs associated with those employees using information from the Department of Labor.
- Choose a company name. Search the county clerk’s name database as well as the secretary of state’s database to ensure no one else is using your company name.
- File articles of incorporation with the secretary of state where your business resides. With the incorporation filings, include a list of existing board members, stating your name as the CEO of the corporation. Pay all required fees for the filing.
- Obtain proper tax registrations. The Internal Revenue Service requires corporations to maintain a separate tax identification number obtained by filing a form. Contact local state revenue boards for state registrations and business permits and licenses.
- Obtain financing for your business through personal funding, small business loans or venture capital. If you are seeking a loan or investors, speak with your local SBA representative to see what loans or grants you qualify for or what resources are available for venture funding. Provide potential investors with a copy of the business plan.
- Open your business and execute your plan. Most businesses fail in the first few years because of undercapitalization or poor planning, according to the SBA. Make sure you have the funding to keep operations open while you build your business.