Minnesota Business Startup Guides
Start a Business in Farmington, Minnesota
Are you starting a business in Farmington, Minnesota? This article discusses the most important things to consider when opening a business in Farmington.
Are You Sure You Want to Do This?
An entrepreneurial life is hard work, much more challenging than working as an employee. Are you certain you are ready to take on this challenge?
Here are three things we recommend you do before you fully commit to starting a new business of your own.
- Speak with other entrepreneurs in Farmington. Ask them candidly what it's like to run a business.
- You should read Starting a Company. It's a good read for those who are thinking about becoming an entrepreneur.
- Talk it over with a close friend or partner. The people who know you best are often in the best position to tell you bluntly whether you will be a good entrepreneur.
Farmington, Minnesota Demographic Information
Farmington has an active business community that includes small businesses, mid-sized businesses and large businesses.
To give you a better feel for Farmington demographics for small businesses, we have tabulated the small business sizes, based on number of employees, for business in Farmington.
Businesses
As a new Farmington entrepreneur, you may also be interested in the table below. It shows how many businesses there are in Farmington for each business category. By looking at this chart, you can get a general sense for how much competition there is in the business niche that you are pursuing.
Businesses
Have You Considered Buying an Existing Farmington Business?
If you have some capital to play with, you may want to Buy a Business in Minnesota. Follow that link and you might discover several good businesses for sale in Farmington.
Before buying a business, be sure to read this article: Hold Harmless Agreements When Buying Businesses.
Company Formation in Farmington, Minnesota
It's essential that your business is formed as a legal entity that is separate from its owners. Without a legal structure for the business, you can be held personally liable for the actions, debts and obligations of your company.
When forming a company, you will decide among many company types, such as a traditional C-corporation, a Limited Liability Company (LLC), or an S-corporation.
Incorporating is a very popular way to form a business. Of course, you have to decide which type of corporation to form and where to incorporate. Just because you are starting a business in Minnesota, you don't necessarily have to incorporate in Minnesota. In fact, you can incorporate in any state you would like to. However, if you do incorporate in another state, you'll have to register as a foreign corporation in your home state.
There's a lot to know about forming a company. To learn the fundamentals of company formation, browse articles on our site, such as Where to Incorporate. You may also want to seek the advice of an lawyer. On a final note, since you will be starting a business in Farmington, Minnesota, our web page covering Incorporating in Minnesota may be a useful resource if you decide to incorporate in Minnesota.
Do You Need a Business Plan?
A business plan is critical in laying a solid foundation for your business success. Simply put, a business plan describes what you plan to do with the business and how you plan to do it. Starting a business without a business plan is a recipe for disaster.
To learn more about business plans, read The Art of the Executive Summary. You should also take advantage of free business counselors available to you through your local SCORE chapter in Minnesota.
Raising Capital for Your Business
Raising money to fund your new Farmington business is very difficult due to the ongoing business credit crunch. To obtain business financing, you will need to hear a lot of rejections before you finally find a funding solution that works for you.
To learn about raising money, we recommend you read the fundraising articles on our site, such as Borrowing Money from Friends and Family.
For Farmington entrepreneurs on the hunt for startup funding, check out our List of Minnesota Angel Investors and our List of Minnesota Venture Capital Firms.
Next Steps
As an entrepreneur in Farmington, you won't be working for the boss anymore. You are the boss.
From this point on, you control your own destiny.
Our goal here is to promote the vitality and growth of small businesses in Farmington and throughout the United States . We believe entrepreneurship is an amazing engine for job creation in Farmington, neighborhood development and overall economic health.
More Entrepreneurial Resources for Starting a Business in Farmington, Minnesota
Here are more links that we believe will help you be successful in starting a business in Farmington.
- Resources for Farmington, Minnesota Entrepreneurs - Browse a variety of resources we've collected to assist Farmington entrepreneurs.
- Minnesota Entrepreneurial Resources - We've gathered state-level entrepreneurial resources to help new entrepreneurs who are based in Minnesota.
- Minnesota Small Business Development Center - The Minnesota Small Business Development Centers provide no-cost, professional business consulting to Minnesota small businesses covering a variety of business needs.
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