Now is a great time to start a business in Southern California. California boasts diverse and vibrant cities, with endless networking opportunities and an abundance of resources. California’s sunny climate means that a variety of services, concessions, and activities are available year-round, allowing businesses to make money year round, unlike other areas of the country.

While there are many exciting aspects of launching a business in California, it is important to remember that there are also some legal and logistical requirements to consider. California has strict regulations in place, for all businesses, especially those with employees.  As such, it’s essential to make sure you understand them before you start. 

With California’s diverse economy, start-up culture and its strong support for entrepreneurs, now is the perfect time to make your dreams a reality!  Here are some things to consider as you begin.

What Do You Have That The Market Needs?

The first step in deciding what type of business to start is to think about your talent and interests. Identifying what you are passionate about can help you decide on the perfect business for you. It’s also important to consider if there is a gap in the market for a particular product or service, as this could give your business an edge over the competition. 

Additionally, think about who would be your target audience and how to create a unique customer experience that will make your business stand out from others in the market.  Southern California has an incredibly diverse community of people, making it likely that there is a market for the talent you want to provide.  Doing research into your potential customers and identifying their needs can help you develop products or services that they will be eager to buy.

Figure Out the Finances

Starting a business is an exciting but daunting prospect from a financial standpoint for most people.  It’s important to take the time to research funding options and make sure you have enough capital for your venture and to make sure that the money you get to start your business comes with risks you can live with. Here are some of the ways to get funding for your start-up.

Venture capital funding comes from sources such as venture capitalists, private equity firms and other investment organizations. It involves providing funding to start-ups with potential high returns on their investments.  

A bank loan is the traditional type of business financing.  A bank loan is a secured or unsecured loan option for funding your business. Secured loans involve providing collateral as a guarantee against the loan, while unsecured loans do not require any security.  Most banks will want to see a solid business plan along with other guarantees before they provide a loan.

Many governments offer grants and funding programs to help entrepreneurs start their own businesses. These can include tax breaks, free advice and grants for research and development.  If your business idea involves green energy, education, or other services the government is interested in, it’s worth researching what grants may be available.

Self-financing as well as money from friends or family can also be a great solution.   Funding from people you know is often unsecured and does not involve credit checks, making it a popular choice for many start-ups.

Hire an Accountant and a Lawyer

Even if you think you can’t afford to hire an accountant or a lawyer, you probably can’t afford not to.  

Accountants are great assets to businesses. They provide insight into financial data and trends, helping business owners make sound decisions and plan for the future. Accountants can also help set up internal controls to ensure financial accuracy, to help the business owner understand the business’s money, and to  advise on tax planning strategies.  Many small businesses who cannot afford a full-time or permanent accounting team find big benefits in outsourcing accountants, such as TGG-Accounting, especially if the business plans to grow.  A good accounting consultancy will often pay for itself.  

A business lawyer can be a great resource for start-ups to ensure they stay compliant with local laws and regulations, such as the requirements for specific types of businesses, like food service, health and beauty, medical providers, and other types of regulated companies. Business attorneys are able to provide insight into the complexities of California business law, such as incorporating your business, forming an LLC, or drafting contracts. They are also knowledgeable in employment law and tax issues specific to Southern California businesses, so they can help guide you through the legal process and ensure that your business remains in compliance, avoiding costly fines and penalties.