By Tom Pedreira

A first thing to do is to research as much as possible about what it takes to start up a business in the state where one will be operating. There are scads of resources available online and elsewhere. Sources would include the official state web site, where there will no doubt be lots of information about starting up a business. The web site for the Small Business Administration is another place to look.

A new business owner should also check with local government officials in the city where he or she will be doing business.   In addition to the likelihood of having to obtain a business license or registration, there may be other regulations or ordinances that apply. 

Knowing about tax reporting requirements is critical.  They can be detailed and onerous for new business owners.

A next step would be to square away the ownership arrangement between owners. Who is going to own what percentage? Who is going to contribute what? Is the business going to be incorporated or will the owner(s) form an LLC?

If someone is operating out of his home, unique issues may arise. Will homeowner's insurance cover a home business? Would operating out of a home violate any local zoning rules or other ordinances?

Next, new business owners need to assimilate all this information by writing out a business plan. Figure out a budget and how much money will be needed. Where will it come from? How is the business going to attract customers?

People who want to go into business for themselves should also hire a lawyer and an accountant to help them through the process. They should get to know a banker, as well. In short, it is important to develop relationships with people who will be good and necessary resources for the business.

This list is not exhaustive, but emphasizes the need for pre-planning before embarking on a new business venture.

(Mr. Pedreira has also shared this information at lawyers.com, where he is a regular contributor.)