Starting a business is a common aspiration for many Americans who want to achieve the American Dream. To succeed, careful preparation and consistent execution are necessary. It’s important to follow expert advice and exercise diligent effort tempered by patience. You stand a good chance of getting a successful and profitable venture off the ground if you do.

Here are some tips on how to get your business started:

– Take a realistic self-inventory: Do you have the motivation, adaptability, optimism and resilience necessary to realize a business idea? A prospective business owner should assess their strengths and temperament. It’s also important to be prepared to possibly lose money in the short term when starting a business.

– Have a strong idea: A business should be built around something that the owner is enthusiastic about and is experienced in, and that improves people’s lives.

– Write a business plan: A business plan is crucial to understanding the path your business will take. This document usually projects three to five years forward, outlining an organisation’s steps to grow revenue. The business plan should include an explanation of the company’s organizational and management structure and a description of the product line or services. Outline the sales and marketing approach with a well-thought-out and realistic strategy. Provide realistic financial projections. Finally, add an appendix containing useful information, such as permits, certificates, leases and resumes.

– Create a financial assessment: Measure your available assets versus the necessary costs of the startup business. Although often difficult to obtain, commercial bank loans can bridge the gap. There are also small business loans from the Small Business Administration. When sizable capitalization is needed, many new owners turn to outside investors, although these investors will usually demand a large say in the running of the business. Once you acquire funding, you have to spend the money wisely. That means reducing business expenses without sacrificing your product or service.

– Pick a designation for your business: A business can hold several technical, officially recognized designations denoting the organization’s basic structure. The simplest form is a Sole Proprietorship (SP), meaning that one person — the owner — will assume all responsibilities. A Limited Liability Corporation (LLC) offers a compromise between the simple, streamlined SP and the more complex, liability-shielding Corporation. There are also such designations as Cooperative, Partnership and S-Corporation, the latter for larger companies.

– Figure out tax obligations, licenses and permits: A business may owe income, self-employment, employee and excise taxes. It is recommended to plan for these financial allotments at the outset. Larger businesses will need to get a federal employment identification number, and most companies will require state licenses, a local tax registration certificate and local permits, such as zoning variance and conditional use.

– Decide if you’ll offer an employee benefits plan: If you plan on hiring employees for your small business, offering an employee benefits plan can help attract talent and provide protection for workers. Luckily, plenty of flexible employee benefit plan options are tailored for small businesses.

– Obtain the legally necessary and recommended insurance plans: A new business requires certain kinds of insurance. Some types are mandated, and others are strongly suggested to protect against worst-case scenarios. The two required insurance plans are surety bonds – required in some industries – and workers’ compensation insurance. Among the recommended insurance plans are personal disability, general liability and BOP (Business Owner Policy), professional liability (often called malpractice), employment practices liability, commercial auto, cyber liability and umbrella.