So after you have build your MVP and you start getting money from your first customers, you should incorporate a company. I would not advise you to do it before you actually have first customers.
There are few things to consider when choosing a legal form. The best would be to contact your local agency which helps small businesses and ask them which legal form is best for your business. If you are located in the USA I could advise you Legal Zoom a company which provides legal advice to starting your own business hassle free. When talking about incorporation the main topic is about liability and to what extent you are liable with your personal assets in a certain legal form.
Another important topic is finance: basically you have to have it under control. If you do not it is only a matter of time, that your business will fail. And you should have it under control from the very beginning.
Create a spreadsheet in Google Docs, you can use the templates which are out there but I would strongly advise you to adapt it and use something which will make sence to you and what you will understand. Basically you need two documents a profit and loss acount and a cash flow. Profit and loss keeps track of your profits and expenses and cash flow of the cash flow situation in your business. Create three scenarios when projecting your revenues, worst case, middle case and best case. Be very realistic and my advice would be to hope for the best case but be prepared for the worst case. If you have the three scenarios calculated you will also have a peace of mind and will be able to reduce the stress and uncertainty.
I would advise you to try to keep your costs low, especially in the begining so you are flexible and can cut them. Another good tip would be to rent or lease stuff instead of buying. There are many great websites which allow you to do this, join the sharing economy 🙂
I could also advise you a great programme called YNAB you need a budget. There you can track record of your expenses and run a budget for your small business. It is also great way to keep track of your personal finance, which you should also get under control. Because if you can not do this, it will be hard to run the business.
From the very beginning you should also do the accounting. There are few great programmes which make it very easy. You can choose either
Xero or Freshbooks. YOu will have the order from the beginning and will not have to be then sorting it all at once.
Where do you get the financing to start your own business is another key question. Project what your initial investment could be and consider your options. The best would be if you have savings or if your family or friends could lend you the money to start your business. Like this you will have less stress. If you borrow money from your freinds and family, calculate when you plan to give it back and how (maybe by month) and have a written agreement in terms of timeframe so there are no misunderstandings and conflicts at the end.
If this is not an option and if you dont have any savings. You could go to a bank, I am personally not a fan, but depending on your bank you might get good conditions on a credit. Be very careful what you are signing up for and better consult with a third person before you decide this.
Another options are state grants or startup competitions which provide support or finding an angel investor and crowdfunding.
Want to learn more about how to start your business? Join my Udemy course to find out all the essential information you need to know to start your own business and be successful. Click here to find out more