Business Startup Steps
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Market Research for Small Business
Q: When should I conduct market research?
A: Market research can be especially beneficial during key stages of your business’s development. Here are some examples:
To evaluate a new business idea and see if it is viable:
- Have a concept for a new business? Market research helps you determine whether there’s genuine demand—don’t just rely on assumptions
When expanding into new markets
- This is particularly important when reaching beyond familiar areas. Even neighboring communities may have different customer preferences. Research ensures your strategy is tailored to fit the market.
Before introducing a new product or service
- What seems like a winning idea to you might not resonate with customers. Gathering feedback early allows you to refine your offering before launch, making necessary changes for success.
When seeking funding
- Investors want evidence of market demand. Thorough research helps show there’s a gap your business can fill.
Utilize analytical tools like ESRI or consult local resources through the Auburn Chamber to evaluate the market demand for your business. We’re here to support your success!
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How to Create the Perfect Business Plan in 10 Steps
Q: Why is a business plan necessary?
A: You might wonder why a business plan is important. After all, you already have a clear vision of your goals, understand your market, and possess the necessary skills. So why take the extra step?
There are many good reasons. Here are just a few of them:
To organize your ideas
- Putting your thoughts on paper gives them structure and clarity, making your vision more concrete.
To identify and address gaps
- Writing out your plan can reveal overlooked challenges or areas that need more attention.
To gather feedback
- A well-written business plan allows you to seek advice and insights from trusted advisors.
To demonstrate professionalism
- Banks, investors, accountants, and legal advisors often require a formal business plan as proof of your commitment.
To stay focused
- As your business grows, a plan serves as a roadmap to keep you aligned with your goals, even amid daily distractions.
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Are You Ready to Seek Funding? This 10-Point Checklist Will Decide
Determine how much funding you’ll need
- Evaluate your business goals and expenses to establish how much capital you’ll need to launch and sustain operations.
Self-Fund Your Business
- Self-funding, or bootstrapping, can involve tapping into personal savings, seeking contributions from family and friends, or even accessing retirement accounts like a 401(k).
Secure Venture Capital from Investors
Venture capital offers an alternative to traditional loans, particularly for high-growth businesses. Key characteristics include:
- Equity investment rather than debt (not a loan)
- Focuses high-growth companies
- Higher risk in exchange for potential higher returns
- A longer investment horizon compared to conventional financing
Apply for a Small Business Loan
To improve your chances of approval, prepare these essential documents:
- A comprehensive business plan
- An expense sheet
- Financial projections for the next five years
These materials demonstrate your preparedness and provide lenders with confidence in their investment. When you’re ready, reach out to banks and credit unions to compare offers and secure favorable loan terms. The Auburn Chamber of Commerce is here to support your journey—reach out for guidance and local resources to help you succeed!
Looking for commercial real estate in Auburn? Contact Leslie at the Auburn Chamber of Commerce at 402-274-3521 to explore available opportunities!
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Q: What is a business structure?
A: Whether you’re launching a new venture or managing an established business, selecting the right business structure is essential. It influences key factors such as:
- legal protection
- administrative requirements
- tax obligations
Your decision will shape your rights and responsibilities. The primary options include:
- Sole proprietor
- Partnership
- Limited Liability Company (LLC)
- Limited Liability Partnership (LLP)
- S-Corporation
- C-Corporation
To learn more, visit the resource linked above or seek guidance from local experts like Heather Pemberton, CPA, at 402-858-2041. The Auburn Chamber is here to help connect you with the resources you need!
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Register and secure your business name to protect it.
There are four key ways to register and protect your business name:
- Entity Name: Provides state-level protection.
- Trademark: Offers federal protection for your brand.
- Doing Business As (DBA): May be legally required, though it doesn’t provide legal protection
- Domain Name: Safeguards your business’s online presence.
Create and Commit to Your Logo!
Choose a memorable logo and stick with it. While it may seem repetitive to you, it will remain fresh and recognizable to new customers and help build brand loyalty with returning ones.
Need additional support? The Auburn Chamber is here to help!
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Get Federal and State Tax ID Numbers
Get a federal tax ID number: Internal Revenue Service
Your Employer Identification Number (EIN) serves as your federal tax ID. It’s essential for:
- Paying federal taxes
- Hiring and paying employees
- Opening a business bank account
- Applying for licenses and permits
Your business needs an EIN if it:
- Has employees
- Operates as a corporation or partnership
- Files tax returns for employment, excise, or regulated products (e.g., alcohol, tobacco, firearms)
- Withholds taxes on income paid to a non-resident alien
- Uses a Keogh Plan (tax-deferred pension)
- Works with specific types of organizations
Get a state tax ID number: Nebraska Department of Revenue
Whether your business requires a state tax ID depends on its tax obligations, such as:
- State income taxes
- Employment taxes
The process for obtaining a Nebraska state tax ID is similar to getting a federal one but varies slightly. Check with the Nebraska Department of Revenue for specific instructions and requirements.
For assistance, reach out to the Auburn Chamber for helpful connections and resources!
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Nemaha County Health Inspector: Mallory Alden 402-430-3932 (cell)
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Local Banks:
Business bank accounts typically provide benefits not available with standard personal bank accounts.
Protection
- Business bank accounts provide limited personal liability protection by keeping your business finances separate from your personal funds. Merchant services also offer purchase protection for customers and ensure their personal information remains secure.
Professionalism
- With a business bank account, customers can pay via credit card and issue checks to your business name, rather than directly to you. Additionally, you can authorize employees to manage day-to-day banking tasks on behalf of the business.
Preparedness
- Business accounts often offer access to lines of credit, which can be used in emergencies or to cover equipment costs, providing added financial flexibility.
Purchasing power
- Business credit card accounts help facilitate large purchases and contribute to establishing a solid credit history for your business.