You want to start a business. So how do you get started? In order to successfully start a business, there are some important steps you need to take. This article will help you to get your business up and running.
How to Start a Company: The Basics Develop Your Company Structure. Choose a business structure, such as a partnership, limited liability corporation (LLC), or corporation. Choose a name and location for your new business. Set up an operating agreement (or operating agreement for LLCs), which details who is responsible for what in the case of a lawsuit.
Choose a business idea. One good idea is to start a non-profit venture. You could also start a technology company with complementary products. Some potential customers are small businesses, corporations, or individuals who are innovative and have creative ideas. You can register a corporation for tax purposes if the idea is non-profit.
Write the Non-Disclosure Agreements (NDA). Before you make contacts with potential investors or venture capitalists, make sure you have signed non-disclosure agreements. The NDA protects you from any potential lawsuits that might come up during your startup. Many entrepreneurs do not use NDA’s because they feel they will be vulnerable to lawsuits; however, it is better to be safe than sorry.
Build a Team of Key Employees. Many startups fail because of under capitalization and/or weak teams. The most successful companies have a team of key employees: marketing, technical, accounting, legal, and support. You should consider investing in employees who have a lot of entrepreneurial experience; entrepreneurial skills help them build a strong foundation on which to build their business.
Get a confidentiality agreement. This helps ensure that employees and you will not be distracted from your business by competitors or other investors. A confidentiality agreement can also help with your finances. If you decide to raise money through an angel investor, for example, he or she will likely require a confidentiality agreement. The NDA should also be signed by all employees. When you’re working with venture capitalists, you should make sure he or she has a copy of your NDA.
Develop a Non-Disclosure Agreement (NDA). This document outlines the responsibilities of the employer; it explains the type of information you must disclose, how those documents and information may be used, and when you must disclose them. A non-disclosure agreement should also include an assignment of intellectual property rights piece by piece. This will help protect your inventions.
Offer Letter. Your prospective employees have probably submitted resumes, and you have reviewed them. To make your review of your prospective employees’ resumes more effective, you should include a short written offer letter. Your offer letter should tell the reader why he or she would be great for the position and what his or her obligations are. It should also include a pledge of confidentiality and an employment agreement.
Stock Options. A person does not need to have a college degree or patent to invest in the stock market. A person only needs to have a good grasp of the basics. Using an investment broker, you can buy and sell stock options. Using an investment broker will allow you to buy and sell stock options without providing upfront financial information to your future employers.