Requirements to open a Commercial Property: Necessary procedures, What it is and MORE

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Today there are many people who want to start in the business world in order to know their services. However, it must be borne in mind that for open a business premises and to carry out all the processes that this implies, it is necessary to be well informed about the requirements and procedures necessary to carry out this project.

Only valid for Colombia

This information will help you, if what you want is to establish your business and know what are the processes to follow. Some people know from an early age that they should own their own business.

Others are starting a business due to life changes (parenthood, retirement, job loss). Others may be employed, but wonder if the role of the employer is right for them.

There are several benefits to starting a business, but there are also risks that need to be weighed.

Requirements to open a business premises

Following, the requirements to open a business premises, briefly explaining each of them:

  • Select a name and legal structure: you will need to have an alias in mind for your business and also legal planning to do so as such.
  • Write a business plan: If you haven’t already, prepare at least a preliminary business plan. This is necessary as they will request this procedure.
  • Get your Federal Employer Identification Number (FEIN)– If you are set up as a Corporation, LLC, or Partnership (or a sole proprietorship with employees), apply for a Federal Employer Identification Number (FEIN) from the IRS. A FEIN will be required to open a bank account or process payroll.
  • Open the company’s bank account: select a bank and open the company’s bank account.
Tip: Contact the bank before opening the account to see what their specific requirements are for opening a business checking account; The requirements of some banks are quite simple, while the requirements of some banks are extremely complex.

On the other hand, you’re going to need a leasing office, warehouse, or commercial space – depending on your type of business (retail, office, or warehouse), arrange to rent the office space.

Contacting a commercial real estate agent in your area can be helpful. Also, be sure to organize your utilities and office furniture.

Then get licenses and permits:

  • Federal permits: Depending on the type of business you are in, you may need a federal license or permit. Most businesses DO NOT require a federal license or permit. However, if you are involved in one of the following activities, you should contact the responsible federal agency to determine the requirements for doing business.
  • State licenses: some occupations and professions require a state license or permit. Laws vary from state to state, however, if you are in one of the following professions, you should contact the responsible state agency to determine the requirements for your business.

If you intend to hire yourself or others as a full or part-time employee of your company, then you may have to register with the appropriate state agencies or obtain workers’ compensation insurance or unemployment insurance (or both. ).

There are more requirements depending on your desire. You will be able to learn more by attending directly to the management module that is advising you on your undertaking.

What are the necessary procedures?

Some documents to speed up the opening of your business can be difficult to getr, however they are necessary:

one.Get Business Insurance (High of Record) – There are many types of business insurance, but they are usually packaged as «General Business Insurance» or «Business Owner’s Policy.» This can cover everything from product liability to company vehicles. A decent policy can cost as little as $ 300 a year and offers a great additional level of protection.
two.Develop a business identity and enrollment in the business service: request business cards, letterheads and promotional materials for your business. A Logo professionally created can make your business look professional and established.
3.Obtain Required Business Permits and Licenses – Like any other business, independent contractors must obtain the proper permits and licenses.

Depending on your industry and the location of your business, you may need a license at the federal and state level. Federal licenses are required for companies involved in any type of activity supervised and regulated by a federal agency.

Step by Step

As you progress through the processes to open your business You will see that, apart from the Requirements to open a Commercial Premises, a series of steps needs to be followed in order to achieve the general objective. In addition, through the following guidelines you can have a complete guide of what to do:

Refine your idea

If you are thinking of starting a business, you probably already have an idea of ​​what you want to sell, or at least the market you want to enter. Do a quick search for existing companies in your chosen industry.

Conduct market research

Conducting extensive market research in your field and the demographics of your potential clientele is an important part of developing a business plan. This involves conducting surveys, organizing focus groups, and researching SEO and public data.

Assess your finances

Starting a business comes at a price, so you must determine how you are going to cover those costs. Do you have the means to finance your startup or will you need to borrow money? If you plan to quit your current job to focus on your business.

Do a balance analysis

One way to determine how much money you need is to perform an equilibrium analysis. This is an essential element of financial planning that helps business owners determine when their company, product, or service will be profitable.

Take care of your expenses

Don’t spend too much when starting a business. Understand the types of purchases that make sense for your business, and avoid overspending on fancy new equipment that won’t help you meet your business goals.

Choose your sellers

Running a business can be overwhelming, and you and your team probably won’t be able to do it on your own. That’s where third-party providers come in. Companies in every industry, from HR to business phone systems, partner with you and help you better run your business.

Bookmark yourself and advertise

Before you start selling your product or service, you need to develop your brand and have a following of people ready to jump in when you open your literal or figurative doors for business.

Grow your business

Your launch and first sales are just the beginning of your task as an entrepreneur. To make a profit and stay afloat, you always need to grow your business. It’s going to take time and effort, but what you put into your business will get you out of your business.

If you follow these steps to the letter, you will be able to carry out your venture without any inconvenience.

Benefits of opening a business premises

When you have already met the requirements to open a business premises. You can start to enjoy some of its benefits that include the following:

  • Rewards: not everyone defines reward in the same way. For some, you could be watching a new business grow and succeed. For others, it may be conquering the unknown and attacking on its own.

Regardless of how you define the reward, starting a new business could hold the promise for you.

  • Being your own boss: When you start a business and are self-employed, you are your own boss and ultimately control your own destiny.
  • Income: if you consider that starting a business is an economic necessity or a way to generate additional income, it is possible that it generates a new source of income.
  • Flexible schedule: Owning your own business is hard work and often requires long and odd hours.

In some cases, having your own business can allow you to have more flexible hours. Many stay-at-home parents, for example, choose to become entrepreneurs.

  • Buy an existing business: While it may not look like «starting» a business, buying an existing business has been beneficial to many business owners, but it certainly requires time and financial investments.

For companies that are already profitable, these new business owners skip the true startup phase and run a mature business.

The benefits will depend on your growth.

Functions of a Commercial Premises

Not all people know the functions of a business who is affiliated with a business premisesThis is why I will mention the functions or roles that it has within the world of entrepreneurs:

  1. Production function: production is the creation of goods and services with the help of certain processes. The production of goods essentially depends on the organization of men, money, materials and facilities in a business that runs smoothly.
  2. Marketing function: Marketing is the process of putting goods and services in the hands of the consumer in order to satisfy the needs and wants of consumers and producers.
  3. Financial function: the finance function of companies is responsible for three decisions and their proper implementation. It can be subdivided into the following: Investment decisions, financial decisions and dividend decisions.

What is a Commercial Premises in Colombia?

The general definition of a business is when a person or organization benefits by providing goods or services in exchange for money. However, earnings can include other items of value, such as credit, and items and services that are exchanged in lieu of money. A commercial premises is the same with the difference that, in this case, it is starting from scratch.

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