Starting a business involves planning, making key financial decisions and completing a series of legal activities. These 10 easy steps can help you plan, prepare and manage your business.
Step 1: Writing a Business Plan
Use online tools and resources to create a business plan. We will post written guides to will help you map out how you will start and run your business successfully.
Step 2: Get Business Assistance and Training
Take advantage of free training and counseling services, from preparing a business plan and securing financing, to expanding or relocating a business. Your city has a great deal of information to assist you with this and most of it is free, you must TAKE ADVANTAGE OF IT!!
Step 3: Choose a Business Location
Get advice on how to select a customer-friendly location and comply with zoning laws. Start with cities with the highest black populations.
Step 4: Finance Your Business
Venture capital and research grants to help you get started. A loan for black businesses is next to impossible right now. Family funded businesses are your best bet. Buy Black will offer business funding in the future, and there will be some requirements to qualify for this.
Step 5: Determine the Legal Structure of Your Business
Decide which form of ownership is best for you: sole proprietorship, partnership, Limited Liability Company (LLC), corporation, S corporation, nonprofit or cooperative. In cases where FAMILY is involved you must legally form a partnership and CLEARLY define everyone’s role involved. Members/Owners can invest, but do not have to be part of the decision making. Members/Owners can be part of the day to day operation, but also do not have to make business decisions. The individual that has a STRONG business sense must lead the operation. *CHOOSE CAREFULLY*
Step 6: Register a Business Name (“Doing Business As”)
Register your business name with your state government.
Step 7: Get a Tax Identification Number
Learn which tax identification number you’ll need to obtain from the IRS and your state revenue agency.
Step 8: Register for State and Local Taxes
Register with your state to obtain a tax identification number, workers’ compensation, unemployment and disability insurance.
Step 9: Obtain Business Licenses and Permits
Get a list of federal, state and local licenses and permits required for your business.
Step 10: Understand Employer Responsibilities
Learn the legal steps you need to take to hire employees.
Start BOB in Africa:
Register with the Registrar of Companies
Decide on a company name and register the name with the Registrar of Companies (Registrar General of the Corporate Affairs Commission) for your chosen country. Once you’ve registered your name, it can take a couple of days for the process to complete. If it’s not already taken, your company name will be added to the Registrar’s database. Not all countries in Africa will have Registrar of Companies based there. If your country does not have a Registrar in the country where your business will be stationed, you should file with the Registrar of Companies in your country of residence for the country in which you wish to create your business.
Register with the Embassy
This step is vital for those seeking to do business in Africa where there are cultural and economical issues that need to be taken into account before running a successful business. The Embassy for your chosen country will provide important information for starting a business such as laws or permits needed for starting a business in your area of interest. The Embassy employs representatives of the foreign country to communicate about their home country. They act as a liaison feeding you vital information that will help you to plan your business.
Obtain a Permit
The law requires that businesses obtain a permit before they can begin to make transactions. This is done to ensure that you’re staying within the law for your particular city in the safety, structure, and appearance of your business. Find out what the regulation agencies in your chosen country requires in order to obtain a permit. Once you obtain a permit, you will be granted permission to legally run your business.
Obtain a License
When applicable, some businesses must also obtain a license in order to meet certain codes or standards for doing lawful business within an area. You can find out if you need to obtain a license by contacting the local government office in your country of choice.
Register with LRR
Also known as the office of the Local Receiver of Revenues (or Revenue Authority), registration with this office takes care of paperwork for obtaining an income tax number, employee withholding tax, and pin certificates. Each country in Africa has its own office, so be sure to contact the office that applies to you.
Register with the Department of Labor
If you plan to hire employees, you’ll need to register with the country’s Department of Labor for unemployment insurance. The DOL protects the rights of workers. Depending on the country, this department may go under the name of Ministry of Labor (as is the case in Namibia, Kenya, and Nigeria). Upon approval, you will be issued a reference number.
Open a Bank Account
It’s important to have a separate bank account for your business to separate your personal finances and expenses from that of your business. Ideally, this account should be opened in your chosen country in Africa. You will need to have your company documents with you once they are obtained in order to open a business account.
Steps to Start your BOB in the US and Africa