How to Start a Small Business in Florida

When considering starting a small business in Florida, there are many things to consider first, such as the type of business and the type of products or services to be sold. How many retailers in and around the area where the business is intended to locate? How are these businesses doing in today's economic climate? How long have these other establishments been in the area? What percentage of the public would be interested in this type of product or service and is it seasonal and what percentage of that market lives in the area demographically speaking? Another important factor is the median income in the area to see the percentage that can afford the product or service.

Step 1: Determine the total cash on hand, the ability to acquire more cash through the use of equity in property, assets that can be used as collateral to secure a loan, stocks, bonds, mutual funds, IRAs, term life insurance policies and so on.

Step 2: Find a location that affords the best visibility, access, parking, the correct image, the right amount of walk in traffic and the right cost and terms. If you are near the beach or one of the major resorts, take into consideration the amount of tourists and what the tourists will be willing to spend their money on.

Step 3: Purchase several double entry journals, one for cash on hand and personal taxes, one for business expenses, one for payroll, and another for sales and sales tax collected due to the IRS. In the alternative, you can purchase accounting software if you are comfortable using accounting programs. Most major cities in Florida also have many accountants that you can hire, should you not feel comfortable doing your own accounting.

Step 4: Determine the classification for the business. Weigh the pro and cons as associated to the business when choosing a limited liability corporation, an S corp., a sole proprietorship or a profit corporation. Decide who the officers will be. Apply for the entity with Florida's division of corporations. Most applications can be made online at sunbiz.org.

Step 5: Contact the IRS and apply for a federal employer identification number. This can also be applied for online through their website at irs.gov.

Step 6: Get a county and city occupational license, a employee tax permit, and sales tax permit, and register the business as the entity decided on and file a DBA fictitious name. Start looking for a good insurance company for business insurance. This is a must have and can be pretty expensive. It may take a bit of shopping prices as they differ considerably. The problem with many of them they are not only high but want 50 percent or better down and only give six months to pay the difference.

Step 7: Get all the exposure possible prior to opening. If it is a retail business, install a big sign in front of the establishment. Have it professionally painted with the business name in large letters and a message to make notice of a grand opening extravaganza. Use something that creates as much interest or excitement as possible. Use of the news media or television is a good vehicle for propagating this type of information to the masses in the area and creating interest. Offer enticing reasons for the public to anxiously anticipate the opening of the business and to visit the business once opened.