Questions You Need To Ask Before Starting A Business
The U.S. is the leading location for new business investment, both domestic and international. Besides having one of the world’s most attractive consumer markets with a GDP of over $17 trillion dollars, the U.S. also has one of the highest per capita GDP of $55,200. This equates to strong economic growth and high consumer spending – ideal conditions for starting a successful business. Yet, nearly 50% of all small businesses in the U.S. fail within the first 5 years, indicating that it takes more than the right environment to survive in one of the world’s most competitive market. To ensure that your business is among the few to succeed, here are 6 of the most-asked questions we receive about starting a business in the U.S:
What legal aspects do I need to consider?
There are many legal aspects that you will need to consider depending on the industry and state you want to start your business. From licenses, permits, zoning laws and regulations to L-1 and EB-5 visas for non-resident entrepreneurs, it is best to consult an attorney and business counselor for advice specific to your needs.
How much money do I need to get started?
The cost of starting a business depends on your business model and your chosen industry. Things like business filing fees, hiring an accountant, employees, conducting market research, researching a location, renting a property, purchasing inventory, insurance, internet, etc. all attribute to the cost of starting and maintaining a business.
What other financial responsibilities will I have?
As a business, your range of financial responsibilities includes state taxes, real estate taxes, laws, and specific regulations pertaining to your industry and choice of business location. Additionally, as an employer you will also be required to withhold federal and state income taxes from your employee’s wages and salaries, contribute to unemployment and workers compensation, and match Social Security contributions.
What is my market potential?
Your market potential can be assessed by a number of things, but ultimately it relies on who your potential customers are, what distinction your products have in relation to your competition, what prices are your consumers prepared to purchase your product and the geographic size of your target location.
Are some locations better than others?
Yes, selecting the right location is critical to the success and long-term health of your business. Taking the time and money to consider customer accessibility, demographic, potential market, visibility, availability of employees, competition and location cost can all play an important part in determining which location is better than others.
How do I find out about suppliers/manufacturers/ distributors?
You can conduct your own research by acquiring a list of manufacturers by categories and geographic location through most U.S. libraries. If you plan to import your products, there will be regulations and compliance laws you will need to meet in order to get your product into the country.
Where can I go for help?
Even with extensive planning and research, many businesses will still fail. Hiring an expert business consultant can minimize your risks and assist you in making the right moves towards success. At ReachOut Business Solutions, we are experts in the U.S. market. Contact us today to get the expert resources and counsel you need to start your business off right.
According to The World Bank
