Starting a new business is an exciting endeavor. You may invest in a franchise or start from scratch based on an idea, a passion or a market gap. Here are some tips for starting your first business.

Find Your Niche and Target Market

Before you can start a new business, you need to decide what your business will do and who it will cater to. The most successful startups find open niches and develop business plans to fill them. For example, many app developers determine what people want to be able to do with their phones that they can’t already and then find ways to meet those needs.

Develop a Business Plan

Once you know what your business will do, you need to develop your business plan. A business plan is an outline of your business’s structure and your plans for its future. You should include information on how you plan to run the business, your budget and growth projections, market research and equipment and tools. Business plans help leaders keep their teams and businesses on track. Lenders also typically require borrowers to include them in their applications.

Seek Funding and Financing

Startups may access many unique and useful types of funding. Base your financing choices on your business plan and industry. Think about what you need funding for and how long you will need it. There are long-term and short-term options available. New businesses may need to finance equipment, take out commercial business loans to purchase property or apply for small business loans for access to working capital until their cash flows stabilize.

File All Applications and Paperwork on Time

Startups require large amounts of paperwork. You will likely need to apply for or submit requests for loans, registration and insurance coverage. Depending on your industry, you may also need to file paperwork to receive licenses and permits. Make sure you also receive an employer identification number (EIN) for tax purposes and fill out all paperwork related to taxes, accounting and payroll. Filing all paperwork in a timely manner ensures your business remains on schedule and is able to operate legally and safely.

Not everyone wants to start a business, but those who are tend to be driven, passionate and flexible individuals. Do market research. Work with people you trust and with whom you can collaborate comfortably. Choose locations and a business structure that make sense for your needs.