As a follow up my previous post, this article contains a relevant list.
10 MAJOR TASKS WHEN STARTING A NEW BUSINESS
1. Determine startup costs and find the money (e.g. savings, home-equity loan, business loan, etc.).
2. Find location (many startups begin in owner’s home).
3. Choose legal structure (sole proprietorship, partnership, corporation, limited liability corporation).
4. Apply for business license if city requires it and/or other required permits and licenses, depending on type of business.
5. Register a fictitious business name and/or apply for trademark (a franchiser will handle this issue).
6. Obtain seller’s permit if business will sell products subject to sales tax.
7. Apply for tax-identification number for IRS if business will have employees.
8. Set up business bank account to keep company revenue and spending separate from personal account.
9. Set up record-keeping system to track finances, deductible business spending, etc.
10. Write a business and marketing plan.
Of course, these are the most basic prerequisites and there are MANY more major tasks and gut checks, but this is a good start.
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Ryan is an attorney and valuation specialist residing in Chicago. He chronicles his thoughts and research on FranchisePundit.com. You may reach him by email ryanknoll@gmail.com or mobile telephone 312-715-8115.
The most important thing to do if you are interested in a franchise system is to work there for 3 months.
"The most important thing to do if you are interested in a franchise system is to work there for 3 months."
What if that is not possible? I work fulltime and don’t think I can quite and work for minimum wage for 3 months. What else is can I do?
Anonymous –
Michael makes a good point. Work in the franchise part-time if you can, or once or twice a week for a few hours. You’ll be surprised how much you will learn in that short amount of time. Can you imagine yourself spending 50-70 hours per week in that franchise?
Shouldn’t writing a business and marketing plan be #1? If you haven’t figured out how the business will be profitable and how you are going to market it, why go through the trouble of doing all the rest of the steps? Seems like a good way to force yourself into a business that you shouldn’t have started in the first place.