Business Foundation Checklist

If you are on the ground floor of starting a business, it can be easy to get overwhelmed. You may worry that you won’t think of everything, or even know where to start. This business foundation checklist can help you organize your thoughts and get everything in order, even before you talk to a business attorney to start the process.

What to Think About for Business Foundations

There is a lot to think about when starting a business in Connecticut. From funding to location to business structures, it can feel like there is always another thing to consider. But perhaps the most important thing to think about for business foundations is “why.”

Your reason for starting this specific business should be at the center of everything else you do. Being a business owner can dominate your life and become central to your identity. You need to make sure it is a business idea that will play to your strengths and ignite your passion. Consider your own business experience and skills, and whether you can supplement those by working with a partner or shareholders. Identify the parts of running a business you will enjoy, along with things you will want to delegate as soon as possible. By making this personal assessment part of your business foundation, you can avoid professional burnout and ensure your company has strong leadership to guide it to success.

Checklist for Starting a Business

• Define your vision for your company

Maybe your business is starting as a good idea, or based on a gap in the existing marketplace. Or maybe it is sprouting out of your own skillset and professional experience. Take time to germinate that seed of a business idea, allowing it to grow into a vision for your company. What will the business look like when it is in full swing? By having a clear vision in mind, it will make it easier to define practical steps toward making it a reality.

• Find the Right Name

In today’s market, choosing the right name is essential for a successful business. You need something marketable, without treading too close to your competitors. It should be something memorable, and with a website URL that is easily communicated. Once you have a short list of names, you need to perform a trademark search and do a Business Records Search on the Connecticut Secretary of State website, to make sure it isn’t already taken. You may also want to do a URL availability check using a website like whois.com to make sure you can claim the domain name.

• Contact a Business Attorney

No matter what industry your new business will be in, you will need the help of a knowledgeable business attorney to guide you through the business foundation process. A business lawyer can act as a thought partner, counseling you through developing your business idea, and keeping you out of common pitfalls along the way. Retaining a business attorney early can help you ensure that every box on your business foundation checklist gets checked off, and will avoid legal problems down the line.

• Draft a Business Plan

Every business needs a good business plan – one that identifies your company’s unique business offering, sets out your short and long-term goals, and lays a path toward profitability. Especially if you will be seeking funding from a bank or venture capital company, you will need to show that you have thought through the financial aspects of the work.

• State of Connecticut Business Registration & Licenses

Once you are ready, you will need to organize your business with the Connecticut Secretary of State. You can reserve your business name as soon as it is chosen, even if you aren’t ready to formally organize. That will give you time for choosing the right business structure for your company, setting up a partner or LLC, and completing the State of Connecticut business registration paperwork. You will also need to apply for a business license and may need additional special licenses or permits before you begin your work.

This is why working with a business attorney is most important, because it ensures that all the right paperwork is completed correctly and filed on time, with the right office, to protect your company’s interests.

• Funding Business Startup Costs

Organizing allows you to receive an FEIN, and open a business bank account. Once you do that, you can start receiving the funding you need to launch your business. In building your business plan, you should have determined how much money you will need to cover things like startup costs, facilities, and initial inventory. Now, you can gather those funds from outside sources like:

• Shareholders or business partners
• Venture capitalists and investors
• Grants and business development projects
• Small business loans from the bank
• Friends and family
• Personal savings
• Crowdfunding options (like Kickstarter)

By diversifying your funding sources, you can protect your ownership interest, and make it easier to meet your financial goals.

• Have an Exit Plan

It may seem counterintuitive, but knowing your end goal is an important business formation consideration. Are you founding this company so it can be a family business that gets passed down to your children? Or are you hoping to develop a profitable and marketable business that you can sell to investors? What will success look like, and how will you know if it is time to cut your losses? Creating an exit plan before business gets hard can help you be objective about your goals and help you avoid going down with the ship.

At Lawrence & Jurkiewicz, we focus our practice on helping people. We know how to help entrepreneurs and business owners establish strong business foundations to set up their new companies. We can guide you through the business foundation process, giving you advice and legal services every step of the way. We want to help you make the right decision for you, your business, and your family. Please call 860-626-1333 or contact us for a consultation.