The Entrepreneurs Checklist: How to Start Your Own Business in Bozeman
You may not realize it but Bozeman has been dubbed as the most livable place by the Montana Office of Tourism. The rock climbing, skiing, mountainous views make it a dreamland for nature enthusiasts! But even if you’re not too keen on things involving nature, Bozeman still has something for the city slickers as well. From symphonies and art galleries to farmers’ markets and street festivals, Bozeman has brought so many people to this thriving city for numerous reasons.
Because Bozeman practically has something for everyone, it’s no wonder why it’s been dubbed as the most livable city! There’s just one more reason as to why it’s earned that title that the Montana Office of Tourism failed to mention… What lots of people don’t realize is that Montana is actually a prime location for aspiring entrepreneurs to start their businesses.
To be fair, the fact that Bozeman is an entrepreneur’s dream isn’t necessarily a Montana “attraction” that brings people to the city for the Montana Office of Tourism to report. BUT... with it being an “attraction” to aspiring entrepreneurs, Montana’s Office of Tourism should make it an exception in tourism!
Just kidding, but if you’re currently living in Bozeman or are thinking of relocating to Bozeman and are wanting to start your own business here, there are a few things you need to do. Follow this checklist on how to get your business up and running in the most livable place called Bozeman.
Create a Detailed Business Plan
In short, your business plan is going to be the blueprint for the future of your business. You might have it in your head that you’re going to do this and that but it means nothing unless you have laid everything out in full detail.
To create a detailed business plan, you’re going to outline how you plan on achieving success for the next three to five years. It needs to explain your business goals and how you plan to achieve them. It also needs to list the risks your business could potentially face as well as how you plan on overcoming those risks (i.e. type of coverage your business needs).
One of the more important aspects of your business plan is going to be how you plan on funding your business. Lenders and financial institutions are going to want to see this portion of your business plan in great detail. You’ll also need this detailed business plan if it comes down to needing or wanting to sell your business too, according to Entrepreneur.
Determine the Best Legal Entity for Your Business
Whether you choose a sole proprietorship or an LLC, you are going to need to determine which one is best for the type of business you plan on starting. Each entity has its own set of pros and cons but again, based on the type of business you’re starting, you’re ultimately going to be the one to determine which one is a better fit.
Get Your Employer Identification Number (EIN)
An easy way to think of an EIN is by looking at it as a social security number but for businesses. Your EIN is the unique identifier that classifies your business as a legal business. In all honesty, the only reason you even need an EIN is solely for tax purposes. If you want to open a business in Bozeman, you’re definitely going to need to obtain this… Your EIN is going to be the very factor that’s going to allow you to hire employees and open a business bank account, etc.
Get Your Business Registered in the State of Montana For Tax ID and State Taxes
Each state has its own state tax ID So with you wanting to start a business in Bozeman, you’re going to need to get yours registered in Montana. Now, the requirements and obligations vary from state to state so you’re going to need to look up Montana’s requirements so you can go on and get the process rolling.
Obtain the Proper Licenses and Permits Needed For Your Business
Depending on the type of business you’re starting, there are certain licenses and permits that might be required of you by the state of Montana. For example, if your business will be selling alcohol in any way, you’re more than likely going to have to present your EIN and then apply for the licenses and permits you need… they won’t just hand them to you.
Open a Bank Account Specifically For Business Transactions
One of the biggest mistakes business owners make is keeping their personal and business transactions in the same account… this is the quickest way to lose your personal assets and to simply mess up the accounting for your business.
To prevent any confusion and loss of monies, keep a business account and your personal account. Also, to save yourself any confusion, you should just hire an accountant to help you in that area. There are plenty of experienced accountants in Bozeman that would be more than happy to assist you with your accounting needs.
Hire! Hire! Hire!
Yes, the products or services you’re selling are going to be an important part of growing your business but what business owners fail to realize is that the employees are the ones who keep the business afloat. From their knowledge of the products or service you’re selling to their overall attitude and customer service they provide, they’re the face of your business, ultimately.
The great news about hiring employees is that Montana’s minimum wage is increasing in 2020! That should help you get people in the door ready to work!
When you hire your first employee, you can consider that as a major milestone on the journey of your business. But before you start hiring people, make sure you have insurance that will cover them for any type of accidents (it’s illegal not to) and just make sure you’ve checked off everything on this list.
