To start a small business in NYC is such a daunting task and a challenge that only the toughest will be left standing. According to Small Business Administration, start-up companies have 50-50 chances of surviving the first five years, but this fact hasn’t dampened the spirits of wannabe entrepreneurs. Commercial moving specialists NYC had seen a lot of businesses in the Big Apple come and go. We can only wish you good luck and let you know that there is a lot of free help along the way. Our goal here is to try and help you find the “start” in the “how to start a small business in NYC”.
The beginning of every business
Everything starts with a great idea, but to be able to materialize your dream, that idea needs to turn into action. Before your dream potentially turns into a nightmare, you need to consider a few things:
- Are you knowledgeable about the business? First thing is first you need to know how to provide the service or produce the product you are intent on launching as your business idea. If you are not, our advice is to find a job in the industry for at least a year and see if this is really for you.
- Is your idea good? You don’t need a completely new never-seen-before product to be successful, but you also don’t want to launch something to an already crowded market.
- Can you raise enough money? Start from a realistic estimate of the amount of money you will need to start up your business. This should be done very early in the process, so you will have to try to predict all the costs including rent and advertising expenses.
To start a small business in NYC-is to do a market research
If a long introspective look at your business idea hasn’t deterred you from your goals, it’s time to see if the market is ready for your idea as well. With a thorough marketing research, you will potentially gain a competitive advantage for your business. This can only be done by gathering information about potential customers and similar businesses already operating in your area.
Finding enough information may seem like a daunting task but there are many free aids you can consult. For example, a good starting point can be the “Census Bureau”, which offers detailed information in many areas including population, income and economic indicators for business. If you find Census Bureau a bit overwhelming, try something easier such as Census Scope. This website brakes down demographic information into more manageable segments.
Next comes the business plan
A business plan is the backbone of everything you will do next, it’s the most crucial of components. As someone who is aspiring to create a successful small business, you need to keep things as simple and as cost efficient as possible, especially in the startup phase. Your business plan is a living document that you will use not only as a blueprint for your operations but as a way to convince potential investors that your idea is worth it.
To start a small business in NYC you need a one-page business plan. Begin from trying to define your vision, what will be the end goal of your startup. Continue defining your mission and your objectives, further explaining the reasoning behind your companies existence and its goals. Make your basic strategy, how are you going to achieve your objectives, outline a simple action plan. For more ideas and in-depth instruction go to SBA’s website.
Work out a budget for your business
Thankfully, it has never been so easy finding capital for your startup than it is today. Your budget starts with your business plan, which will help you determine how much money you will need to run your operations. Keep the costs down as much as possible, especially if you are self-funding, and keep it real by adding an extra 20% cost buffer to your budget.
A “burn rate” is how much money you’ll need on monthly bases to run your business. Determining this rate will help you figure out how long can you stay in business before turning a profit. If you are not self-funding you will have to either raise or borrow the capital. When creating a budget, set it towards getting profit in the first 30 to 90 days, but also set aside some extra money if this doesn’t go as planned.
Now comes the serious paperwork
To start a small business in NYC you need to check which laws and regulations are applied to NY state. To register your business means to make it legal and to protect your brand. We found the best quick guide for startups on NYC Business, a government operated a website. Here’s our quick checklist:
- Choose a legal structure
- Register your business (check if your business needs to be registered with NY state or Country Clerk)
- Apply for EIN number (Employee identification number)
- Register as a Sales Tax Vendor with the NYS Department of Taxation and Finance
- Research required insurance
There is so much more work needed to start a small business in NYC and it all depends on the type of your startup. Paperwork will also vary in case of an online operation compared to a land-based one. The good thing today is that there are so many websites offering free legal help even expert assistance. If “moving and storage NYC” has thought us anything, here at Capital City Movers, is that a lot of businesses in NYC are started and finished every year. We do believe that you can succeed with a lot of determination, learning ability and knowing how to be flexible when facing a challenge.