Do You Have a Clear Business Plan?

Most new businesses don’t fail from lack of effort. They fail because there’s no plan, no structure, and no control over the money. I Failed My First Business—Here’s What It Costs Me, is a Step-by-step guide to help you avoid these costly lessons. To get a preview of the guide you visit the full Hardway library.

An EIN is a free tax ID issued by the IRS, used to separate your personal and business finances. It is required to open a business bank account, hire employees, and file taxes. You can apply online in minutes at IRS.gov.

NAICS is a code that describes what your business does. It is used by the government and lenders to categorize your business. You may be asked for it when applying for licenses, grants, or business credit, but not always when starting. You can look it up anytime using the official NAICS website (census.gov).

A  DUNS number is a free business ID issued by Dun & Bradstreet, used to track your business credit and verify your business to lenders and partners. Not required to start, but often needed when applying for business credit, grants, or contracts. You can apply for one online at dnb.com.

Your business must operate as its own entity. A separate bank account, separate spending, and separate records. Mixing personal and business money leads to tax issues, poor tracking, and can eliminate your legal protection. If your money is mixed, your business isn’t structured no matter what paperwork you filed.