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How to Start a Software Business
Starting a new business can seem to be an overwhelming
or daunting task at times. Use this basic checklist
to make sure all the important steps are taken
before you launch your new venture. This business
checklist will make sure that you cross all your
t's and dot all your i's before your business
launch.
Retain A Lawyer
Do not wait until you need a lawyer to locate
one. Contact a lawyer early in the process, establish
a business relationship with them, and have him/her
assist you in filing the appropriate paperwork
to establish your business.
Retain An Accountant
Even if you plan to manage the financial accounting
of the business yourself, it is good idea to have
a professional accountant available. The accountant
can assist you with tax preparation, and can provide
extremely beneficial advice and guidance on many
other financial aspects of your business.
Determine Business Structure
Determine the level of legal/financial protection
required, and structure your business accordingly.
In the US, incorporating a business provides the
highest level of personal protection, but it is
also the most expensive structure to setup. Other
business structure options in the US include Sole
Proprietorship and Limited Liability Corporation
(LLC). Check the laws in your region and determine
the appropriate business structure. Talk with
lawyers and other business professionals in your
area to determine what options you have for your
business structure. You may also want to involve
your accountant in the discussions as well, as
the business structure you select will have an
impact on the taxes and other financial aspects
of your business.
Register As A Business
Different States and Countries have different
laws regarding business registration. Determine
the appropriate actions required to register your
business in your area.
Select A Company Name
Research possible business names and conduct a
trademark search and domain search on any names
you are considering. For advice on choosing a
company name, read "How
to Select a Company Name"
Register A Domain Or URL
Locate a domain or URL for a company or product
website that will reinforce your brand. Consider
purchasing additional domain versions, as well
as urls for common misspellings of the selected
name.
Establish A Physical Location
Determine your business address. If working from
your home, you may wish to obtain a PO Box for
your business, which will allow you to have a
publicly published business address without revealing
the home location of you and your family.
File For Tax ID# Or Sales Tax Permit (if applicable)
Many States within the US require that businesses
register for a federal Tax Identification Number
and/or a state sales tax permit. Be sure that
you complete the appropriate paperwork. If you
are unsure of what paperwork is required, consult
with an accountant.
Establish A Banking Account
Establish a business banking account. It is important
to separate personal finances from business finances.
Establish a banking account from which you can
pay bills and deposit revenue, so that it can
all remain separated from your personal financial
dealings.
Setup Shipping Accounts
In order to send physical products to customers,
you will need to arrange for shipping accounts.
If you will be providing customers a priority
shipment option, you will need to establish an
account with a carrier that can handle accelerated
shipments. Establish accounts with shipping companies
before you have to ship any product. The shipping
accounts will also help you assess the cost of
shipments so that you can calculate the appropriate
shipping and handling fees.
Telephone And Fax Lines
Contact your local telecom carrier to install
appropriate telephone and/or fax lines.
Locate A Logo
Locate a company and/or product logo that will
help brand your company in the minds of consumers.
Do not rush this process, or settle for something
that is not perfect; the image you select for
your business needs to have a very long shelf-life,
and will be responsible for long-term brand recognition.
More information at - What
to Look for In a Logo
Build Your Website
Build a website. The easiest way to get your new
business to market and save time is to use a web
template. Spend your time where it is most valued,
building quality content for website visitors.
Consider using a web template to speed up the
design process and establishing your business.
More information at - Find
Web Templates or Web
Design Elements
Mail Server / Filtering
Setup a mail server to manage your business email.
It is best to send and receive business email
using a "yourname@yourdomain.com" email address,
which is far more professional looking than using
the personal email account of your local ISP,
or using a "free" email account such as Hotmail,
Gmail, Yahoo, etc. Keep it professional, and invest
in a hosting service that will handle your email
@yourdomain.com needs, or setup a mail server
and handle it yourself. Email accounts based on
your domain name are normally included in your
website hosting package. And don't forget to implement
a spam-filtering solution so that you do not become
overwhelmed with time-wasting junk email.
Business Plan
Create a business plan. The business plan should
have two sections: a short-term 1 year plan, and
a long-term 5 year plan. The 1 year plan should
contain specifics and attainable goals, while
the 5 year plan should be more general and contain
broad-brush goals and plans.
Marketing Plan
Create a marketing plan to launch your new business.
Come up with a complete strategy and budget to
launch your new business.
more information at Write
a Software Marketing Plan
Order Or Create Letterhead And Business Cards
Locate a printer and create a letterhead and business
cards that will serve your business needs, and
which will reinforce your company brand at the
same time. Use continuity in all your promotional
items, website graphics, letterhead, business
cards, etc.
Set Pricing
Determine a product or service pricing scheme.
Establish costs and profit margins. Be sure to
consider operational costs and discounts if you
have reseller plans.
more information at How
to Price Software and The
Pricing Game
Establish Order Processing
Setup a method for customers to purchase your
product or services, both online and offline.
You may want to work with a third party ecommerce
service provider to manage your online ordering
process, and many ecommerce service providers
also offer offline order handling. E-commerce
- http://www.developer-resource.com/ecommerce.htm
Setup An Accounting System
In order to manage any direct receivables and
payables, you will need to use an accounting system.
Setup an accounting system to monitor transactions
and manage accounts.
Register Copyrights / Trademarks
Register any copyrights and trademarks that will
be associated with your new company, products,
or services.
Insurance
Know the laws for your region regarding liability
insurance, workman's compensation (for employees),
and health insurance. Purchase the required policies
prior to your official launch.
Launching a new business need not be an intimidating
experience. Use these steps to ensure that you
have covered all the issues and paved the way
to a smooth launch.
Related Articles:
How
to Select a Company or Product Name
Employment Reviews
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Developer
101
Starting
a Business