Idea

• Before you can open a business, you have to survey your interests, education and experience to help come up with a business idea. Find something you're passionate about, then research the market to determine whether there's need. Identify your potential competition and come up with ways to differentiate your business from your competitors.
  
  

Business Plan

• You don't have to spend months creating a 30-page business plan, but you do need to invest time in creating a plan you can follow to take your business from an idea to a startup company. At a minimum, your business plan must include a description of your business along with a list of the products and services you plan to sell and their prices. Include a plan for distributing and promoting your products and services, a plan for attracting and obtaining funding, and a startup budget that outlines your initial expenses and sales projections for your first year of business. Develop a plan for staffing if your business requires employees.
  
  

Legal Entity

• Whether you run a one-person business or hire a team of employees, contact your local Chamber of Commerce to determine how to register your business as a legal entity in your state. There are several options to choose from, such as registering as a sole proprietorship, partnership or corporation. When you register your business, have a name or two in mind that you'd like to use to represent the products or services your offer. Work with a lawyer to decide which legal entity makes the most sense for your new business before you open your doors.
  
  

Licenses, Permits and Certifications

• In addition to registering for a business license, check with the Chamber of Commerce to find out whether you need special licenses or certifications to operate the business you plan to open. Lawyers, doctors and real estate brokers needs licenses to start practices, while a boutique owner may need a reseller's certificate to operate his shop. If you plan to open a bar, club or lounge, you may need liquor licenses to sell wine, beer and other spirits to patrons. Rules and regulations may vary by state, and by industry, but neglecting to get the proper licenses, permits and certifications can lead to legal trouble.