Economies across the globe need saving right now, and small business is the answer. In the US alone, small enterprises create over 1.6 million new jobs a year and employ 46% of the population.
So, if you’re thinking about becoming your own boss, it’s time to get started.
You’ve probably got some questions though, like ‘how long does it take to start a business?’. Let’s figure it out.
How Long Does It Take to Start a Business From Scratch?
An age-old rule of thumb is that it starting a business usually takes twice as long and costs twice as much as you expected. Every business timeline depends on three things:
- The complexity of the business
- The type of business
- Your location
For instance, a home-based business with no employees, complex equipment, or premises to hire can be up and running within a month or two. A large business involves more involved steps such as finding a building, vetting, and hiring staff, and dealing with local regulations.
Before you get started with the nuts and bolts of creating a business, you must work on a business plan.
According to Pacific Accounting Group, you need a strategic plan for more than just your finance application. Don’t keep your ideas to yourself. Write them down and let them guide the course of your business.
The Steps Involved in Starting a Business
If you’re good at multitasking or have expert assistance from someone who knows how to start a business, you can complete some of these phases in tandem.
These are the basic steps involved:
Creating an Identity
Every business needs a name, a logo, and a domain name. Without a name, you can’t proceed to any of the other stages. Once you’ve got these elements sorted, you’re good to go.
Choosing the Best Premises
After a name, you need an address. Finding an affordable office, factory, or store in a desirable area is one of the most time-consuming parts of the business process.
It could take a few months to find the ideal spot and up to six months more to complete any necessary renovations.
Dealing With the Paperwork
Once you’ve found the ideal spot for your start-up, you’ve got an address to fill out on the endless forms that come next. You can apply for a business license, a telephone number, and start setting up your website.
This is another lengthy stage that can take as long as a month. Once you’ve got your license, it takes about another month to register your business.
The good news is that the IRS will issue your employer ID immediately if you do the application online.
Stock Your Shop
This is the final obstacle before you can open your doors. Sourcing the best equipment and supplies takes some time. The good news is that you can start your research while you’re busy with the other steps.
Aren’t we forgetting something? Yes, finance.
There’s no wrong or right time to apply for funding. You should get the ball rolling as soon as you know how much money you need. Always add a little extra for unexpected expenses and have your business plan handy every time you meet with a lender.
Set Yourself Up for Success
Now that you’ve got a better idea about the issue of, ‘how long does it take to start a business?’, you can forge ahead free of unrealistic expectations.
Remember, lack of planning’s public enemy number one when it comes to business success, so don’t neglect this important phase. Good luck in your venture and if you need any further guidance keep browsing our website.