SALT LAKE CITY – "Silicon Slopes", "The New Silicon Valley", "A Tech Bubble". All Utahns have heard the descriptors and the message is simple – the business and especially the tech business is booming in Utah.
By 2018, 99.3 percent of Utah's businesses were small businesses, according to the United States Small Business Administration. There were 557,794 small-business employees (46.3 percent of Utah employees) and 29,956 new jobs. The unemployment rate in Utah is well below the national average, and the state ranks third in terms of business simplification.
It is safe to say that starting a business in Utah in the current climate is not a bad idea. But starting a business is a big challenge. Here is a guide to starting a small business for the absolute beginner:
Before you can own a business, you have to start somewhere, and the first step is to come up with an idea. It should fulfill a need that you see in your community, and it should be an idea that will inspire you to the point where you will be thrilled even when things get difficult.
You want to do this before writing your business plan, as market research and competitive analysis will often check obvious loopholes in business strategies and inspire new ideas. Market research helps understand the customer base, and competitive analysis makes a company unique. Together, they create a competitive advantage for your idea.
For more information on conducting market research and competitive analysis, see the Small Business Administration.
You are not in a position to start a business that is doomed to failure due to poor financial condition. How to set up an LLC is a good way to judge how many customers and sales you need to make a profit and how much money you need to succeed.
Before you can own a business, you have to start somewhere, and the first step is to develop an idea. It should fulfill a need that you see in your community, and it should be an idea that will inspire you to the point where you will be thrilled even when things get difficult.
Take some time to calculate your startup costs and consider ways to finance your business. You could try bootstrapping (even pay for it), collect money from friends and family, look for venture capital or angel investor.
A business plan is fundamental to starting a business and is a great way to share it with others and apply for funding. The plan includes a roadmap for running and building the business as you go through the boot process and beyond. According to the Small Business Administration, business plans are divided into two categories:
- Traditional Business Plan: Uses a standard structure and delves into each section. The structure of a typical business plan includes a summary, a description of the business, a market analysis, an organizational and management structure, a service or product line, a marketing and sales plan, and financial forecasts. Focus on summarizing the key points. They are usually only one or two pages and convey the idea quickly. A lean startup plan includes key partnerships, key activities, key resources, value propositions, customer relationships, customer segments, channels (cost reduction or value maximization?), Cost structure, and revenue streams.
There are many templates for writing business Plan your plans online, use them when planning the layout and structure of your business.
When starting a business, there are many different business structures to choose from. In Utah, you may register your business as a Company, Nonprofit Corporation, Limited Liability Company (LLC), Sole Proprietorship, General Partnership, Limited Partnership (LP), Limited Liability Partnership (LLP), Business Trust, or a Collection Agency. [1
As this is a guide to starting a small business, we will continue with Limited Liability Companies You must register your LLC with the state of Utah. To do this, you must specify:
- The name of the LLC.
- The main address where the company is located.
- The name and address of members and managers.
- The duration of the business unit.
- The purpose of the business unit.
- Handover of the signature of the organizer.
LLC registration also in the state of Utah requires an original Organizational Certificate and a fee of $ 70. Entrepreneurs can apply for LLC status in person, by e-mail, fax, or e-mail, or they can be submitted and paid online at the OneStop Business Registration Web site.
The employer's identification number does not differ from a social security number, just for one company. It will be your tax and federal tax ID number, which facilitates the payment of state and federal corporate taxes. This allows you to pay employees, file tax returns, withhold income taxes, etc.
For more information on how to apply for an EIN, click here.
Many businesses require state or federal permits or operating licenses. Learn more about what you might need and where you can get it from the Small Business Administration website.
Your business is alive and well, so set up a bank account for your earnings and expenses to stay compliant and protected. Consider setting up an accounting system as soon as your bank account is operational, as it will help you to track all income and expenditure for tax returns and financial planning.
After you have a legal and operational business, you can get started with the fun: run and grow. Some aspects of running the business you want to focus on are:
Are you a local business owner? Comment out your tips below.