If you have recently decided to start a business, you are probably wondering how exactly to expand it and which steps to take first. You will first want to start off with selecting the exact type of business you plan on running and how you would like to expand it. It is best if you consider beforehand what the effects will be on your liability and your taxes.
- One option when expanding your business would be for you to name yourself as the sole business owner through the title of “sole proprietor”. Doing this shows that you alone are registering your business for tax and legal purposes. It also means that it is only you who will keep all of your profits generated by your business after taxes and will be held liable for any losses or damages. Another option is to set up your business as an LLC (limited liability company). This holds you less liable for any damages or losses incurred as a sole proprietor. Limited partnership can always be given in a sole proprietorship because it provides a cap on how liable your partner is and can also give them limited authority. One of the most difficult parts of expanding your business is determining how exactly to structure your ideal business. It is really in your best interest to consider seeking the advice of a business structure and contacts lawyer so that he or she can explain all of the options to you.
- You should do extensive market research on your competition when attempting to expand your business. It is vital that you know exactly who your competition is and how they operate. Research how your rivals conduct their business, what kind of sales they run, how much they yield in a year and their demographic. Learn all that you can about their successes and failures as a similar business. This will help you expand in the long run. Try to talk to customers and employees within the other business, or even go to any conference that they are at and try to speak with them directly about their business without leading on that you are in the same field.
- Remember to heavily review documents like business and legal reports including those put out by publishers like Simba Information. This will be helpful in preparing a business plan that will bring in more revenue. Because a business plan is pretty much a roadmap that will lead you to a thriving business, it should include your projected growth, budget, and what your business brings to the table for investors.