How To Open a Business Bank Account in a Few Easy Steps

When you're starting a website for your small business, there are many factors to consider - from the domain name to the monthly bandwidth for the website. Many new website owners have problems estimating how much bandwidth they need. Is 5 GB a month enough? Or maybe 100 GB? Furthermore, are those unlimited plans truly unlimited? That's what we're here to answer today. Read on to learn more. Measuring Bandwidth Every website on the internet generates some amount of traffic whenever people visit it. When an internet page loads, it needs to pull up all the files included, like images, audio, and script files, which all need to be downloaded to the client's web browser. The same goes for any data that travels from the client's computer to your website. That traffic is called bandwidth, and it's most commonly measured in bits per second (bps). When you decide to make a website, your bandwidth will most likely have a monthly cap set by the hosting company. This is usually presented in gigabytes (GB), although some providers measure it in megabytes (MB). If you exceed your bandwidth limit, your hosting provider may charge you extra or even shut down your website until the next billing cycle. There's a common misunderstanding that bandwidth affects how fast your website works. However, it will not affect how many visitors you may have on your website at the same time before slowdowns happen or, worse, the website crashes. That is only determined by the actual hardware the server is equipped with, along with the physical distance from the server, i.e., ping times. That’s why many businesses choose to host their websites on a VPS platform instead of a traditional, shared server. Determining How Much Bandwidth You Need The average bandwidth for a website isn't universal. Therefore, in this section, we'll list a few essential factors for determining how much bandwidth to order when setting up your web hosting account. Type of Website Different types of websites have different bandwidth needs. A simple blog with text and a few pictures will need way less bandwidth than a video streaming site or an online store. To put it simply - the more complicated your platform is, the higher the chances it will require more bandwidth leeway. Size of Website Website size is another determining factor in the amount of hosting bandwidth you need. A static website with just a few pages will obviously use less than a website with hundreds or thousands of pages. The number of files on your website is important as well. If you have a lot of high-quality images, for example, those will take up more space and, therefore, use more bandwidth than plain text. Number of Visitors The more people visit your website, the more bandwidth it will use. However, other factors play into this as well. For example, if most of your visitors are just browsing through your website and not interacting with it much, they won't use as much bandwidth as visitors watching videos or downloading files. Average Time Spent on Website Another factor determining the necessary bandwidth for all websites is how much time people spend there. If your visitors are there for a long time, they’re more likely to interact with what you have on it, which means they'll be using more bandwidth than visitors who just spend a few seconds on your site before they click away. Average Pageviews per Visit If people only visit one page on your website, they won't use as much bandwidth as visitors looking through multiple pages. Since each page on your website uses some amount of bandwidth, so the more pages someone visits, the more bandwidth they'll use. Calculating the Necessary Bandwidth for a Website Now that we've gone over all the factors affecting how much bandwidth you need, let's talk about how to actually calculate it. You need to determine the average number of visitors your website has in a month by looking at your website's traffic data in the admin panel. If you don't have that, you can use a tool like Google Analytics to get it. Then, you need to multiply that by average page views per visit and average time spent on it. This will give you the total number of page views for your website in a month. Finally, multiply the total number of pageviews by the average page size. This will give you the total monthly website bandwidth. Let's say you have an eCommerce website with an average of 10,000 visitors per month. Each visitor spends an average of two minutes on the site and views an average of three pages. The average page size is 500 KB. The formula goes like this: 10,000 visitors x 3 pages/visit x 2 minutes/visit x 500 KB/page = 30 GB/month This means you would need at least 30 GB of bandwidth per month for your website, but it would be advisable to have more. You can now start shopping around for hosting plans that offer the right amount of resources for your needs. Optimizing Your Website's Bandwidth Usage There are a few things you can do to reduce the amount of bandwidth your website uses. One of the most important things is to optimize your images. This means saving them in a suitable format and using the appropriate resolution. You should also consider using a content delivery network (CDN) to serve your static content. This can help reduce the load on your server and, as a result, your bandwidth usage. A web hosting plan should have enough resources for your website. This includes things like storage space, CPU power, and, of course, bandwidth. Your monthly bandwidth limit is fundamental if the website attracts a lot of traffic or uses a lot of data-heavy content, like videos and high-resolution images. If you're not sure how much data you need, you can use the formula from the section above to get a rough estimate and plan accordingly. Remember that this is just an estimate, and your actual bandwidth usage may be higher or lower than shown here. It's always best to err on the side of caution and choose a hosting plan with more resources than you think you need. Bandwidth Myths Debunked We've mentioned some common misconceptions about server bandwidth and how it affects websites. Let's look at some other popular cases of false advertising often used by hosting providers to lure inexperienced customers. Myth 1: More Bandwidth Means More Speed Many people believe that having more bandwidth will make their website faster. However, this is not necessarily true. Bandwidth only affects the speed of data transfer, not the actual loading time of your website. This means that, if your website is already fast, adding more bandwidth won't make it any quicker. The only thing that matters is the hardware your web host is using - i.e., its processing power and how fast the storage is. Myth 2: You Only Need Enough Bandwidth For Your Average Traffic Another common myth is that you only need enough bandwidth to cover your average traffic. However, this isn't always the case, as you can easily exceed this website bandwidth limit. If you have traffic spikes, you may need more bandwidth to accommodate them. It's important to keep this in mind when choosing a hosting plan. Myth 3: You Don't Need Bandwidth If You're Not Getting Much Traffic Likewise, many people believe you don't need much bandwidth if you're not getting much traffic. Again, a common misconception. Even with low traffic, you may still need a lot of bandwidth if you're using data-heavy content like videos and high-resolution images on each web page. Myth 4: Bandwidth Can Be Unlimited You might've seen a web hosting company advertising plans with unlimited bandwidth. Web hosting bandwidth is a finite resource. Most web hosts will impose limitations or even shut down your website if you use too much bandwidth. Hosting companies often advertise unlimited bandwidth, or unmetered bandwidth as it's often called, for plans dedicated to hosting WordPress websites and blogs. But, there's often a caveat: Fine print stating you'll either have limited speed after X amount of traffic or imposing some other limitation to what you can do with the website. As you can see, there are a lot of myths about bandwidth. It's important to understand how bandwidth works so you can make sure you have the right amount for your website. Conclusion We hope this article has helped you understand bandwidth and how it affects your website. It's a good idea to have an estimate of how much website-hosting bandwidth you need before launching your platform. Keep in mind that your actual bandwidth usage may be higher or lower than average. It's always best to err on the side of caution and choose a hosting plan with more resources than you think you need. This way, you won't have to worry about running into any problems down the road.

If you’ve ever tried to set up a business, you know how difficult it can be to decide on the structure the business should take. Once that’s out of the way, it’s time to work on branding, at which point you need to choose a name. Many business owners don’t want to associate their names or surnames directly with their brand; instead, they’ll use a “doing business as” name (DBA). In this article, we’ll explain what a DBA is, how to get a DBA, why you might need one, and any other related issues that might be causing you confusion. We’ll get right into it with a definition. DBA Definition A DBA is a pseudonym or alternative name that differs from the legal name of the business or that of its owner(s). It can be used to refer to the business as a whole or partially in instances where the owner(s) want to operate the business under a name other than its legally registered name. It’s also referred to as a fictitious business name, trade name (in Colorado, for example), or assumed name, depending on your location. A DBA doesn’t have anything to do with a business’s structure; it’s merely an official nickname used to present a brand to the public. A sole proprietorship, partnership, LLC, or any other business structure can get a DBA.  One famous example of this is Meta, Facebook’s newly renamed parent company. The company’s legal name is Meta Platforms, Inc., but its DBA is simply Meta. The original business entity and structure remain the same, but once the business owners create a DBA, they can market their company much more effectively using the DBA name. DBAs are not separate legal entities and will not offer you any asset or liability protection, no matter your business structure. They do, however, allow you to receive payments, open bank accounts, and market your business under that name. You may or may not need to register your DBA; this varies by state. It’s also important to note that DBA registration is not the same as registering a trademark; upon registration of your DBA, you should bear in mind that the additional rights and benefits associated with trademarks don’t apply to DBAs, unless you go through a separate trademarking process.  Registering a DBA  So, how do you go about registering your DBA? In the USA, you can do this by filling out the required paperwork and paying the filing fee at your local, state, or county agency, depending on the state. In this section, we’ll answer some questions associated with registering a DBA to give you a better understanding of how it works. Who Needs To File a DBA? Although businesses can go without filing a DBA, having a trading name can be great for branding purposes. Any formal or informal business that intends to trade under a name other than their legal one - or that may do so in the future - needs to file a DBA in most states. This is to prevent random “businesses” springing up under false names to defraud unsuspecting individuals. The main purpose of DBA filing is to prevent such cases of fraud. Once registered, the status of the business, its structure, and its ownership become clear not only to clients, but also to the state authorities where the business is registered. This way, everyone knows who they’re dealing with, especially if and when legal issues arise. DBAs are potentially more useful for partnerships than for sole proprietorships, simply because without a DBA, the business name will carry the surname of all partners. The more partners there are, the messier this can get.  A “doing business as” (DBA) name is also advised for formal business structures like an LLC. That way, if the business owner(s) want a rebrand, changing their DBA is much easier than filing for a legal name change. What Names Can Be Used as DBAs? You have great flexibility when picking a name for your DBA. It could be an acronym or an abridged version of your own name, a play on words, or an entirely new name. Filing a DBA with a brand new name is common among business entities trying to rebrand or branch out to focus on a single aspect of the business. You’re at liberty to be more specific about the nature of the business through the name of the DBA for the sake of creating awareness. When Should You File a DBA? You don’t have to file your DBA at any specific time, but it makes sense to do so early on, before you invest in branding. Don’t worry, though - even if you’ve been trading for years without a DBA, it’s not too late to get one.  Reasons to get a DBA later on include business expansion, rebranding, requirements from your bank, and bidding for contracts. The financial status of the company should also be considered when determining when to file a DBA. Registering multiple DBAs at once can get costly, so it’s worth considering whether you really need a DBA and, if so, how many. A better strategy might be to register separate business structures instead of piling up a series of liabilities on one business. In some jurisdictions, you’ll be required to file your DBA within 30 to 60 days after its first use. Step-by-Step Guide to DBA Registration The process for registering a DBA varies based on the state where your business is located or was registered. You should visit the county clerk at the closest registry or the website of the Secretary of State to find out what peculiar requirements apply to your jurisdiction. Your state may also require you to place a local newspaper ad for a stipulated amount of time. The filing fees range from $10 to $100.  You can manage the process yourself or hire the services of a professional to do it for you. Step 1 - Check business name availability  Conducting a name search by yourself or through the state will show you whether the name in question is available at both state and local levels. You should also be aware of the naming requirements applicable in your state. After you’ve confirmed the name’s availability, you can also conduct a quick web search to see if the URL is available and buy the domain name. After all, your business will likely need a website.  Step 2 - Ensure you fulfill the operating requirements After securing your DBA name, you may be required by your state to carry out business operations before proceeding with the registration process. Some examples of preliminary operations include printing branding materials like complimentary cards, staff identity cards (where necessary), and brochures. Step 3 - Complete the necessary forms  At this point, you’ll need to submit your proprietor information, including contact information, telephone numbers, and email addresses. This stage can be completed online. The completed forms can be handed back to the appropriate officer(s) in charge either online or via email. Whether approved or denied, you will be informed appropriately and this concludes the necessary steps to set up DBA. Other Things To Note About Filing a DBA 1. Restrictions on names Depending on your jurisdiction and the registration status of your main business, you may not be able to use certain words in the name of your DBA, including “Inc.” and “Corp.” at the end of the name. This will usually only apply if your business isn’t incorporated.  2. Announcement of your DBA When you start a business and need to find out how to get a DBA in your state, you may want to look out for requirements about announcing your trading name. Some states will ask that you announce your DBA in a local publication for a specific period. This is to create awareness that your legal business name and DBA belong to you and have been duly registered. 3. Certificate of good standing In some jurisdictions, you may be required to present a certificate of good standing from the office of the Secretary of State before your DBA registration can be accepted. This requirement is mostly for LLCs to show proof of the good standing of the business and its owner(s). 4. DBA renewals DBAs expire and need to be renewed after a certain period. In the majority of states, the lifespan of a DBA is five years. Take note of the registration date and the eventual expiry date to avoid any dramas. 5. Information change If the information you provided at the point of the DBA filing changes, your DBA may need to be revised. This can include changes to the structure of the business or to your principal address. 6. Employer Identification Number To protect your privacy and keep your personal and business matters separate, you’re advised to apply for an EIN. Having this number means you don’t need to use your Social Security number for your business identity. Advantages of Registering a DBA 1. Targeted branding When you need to branch out or focus on a certain aspect of your business, you may do so by getting a DBA registered and marketing it to your target audience. You’re at liberty to create separate logos, websites, and anything else related to branding to fit the description of what you’re registering as a DBA. This way, that aspect of the business can stand alone and have a more focused appeal. 2. Privacy protection Since the legal name of a business is usually the name of its owner(s), it makes sense to apply for a DBA. For some businesses, using a DBA ensures the protection of the owner’s privacy and reduces the number of unsolicited postcards and catalogs sent to your address. Privacy protection also helps reduce unsolicited calls, most of which probably aren’t from potential customers. Some of those calls may even be prank calls. You should consider creating a DBA if you don’t run a business that requires using your name to give you some form of leverage and boost personal branding. 3. Business flexibility For a business that already exists and is looking to expand, a DBA affords you the flexibility to do so while avoiding the need to register a new business entity. This flexibility even allows you to expand your business to a region where your legal business name has already been registered.  Flexibility also means that you can decide to use more fun and relatable names for your DBA. So if you haven’t already done so, the time to follow our guide on how to get a DBA is now! 4. Ease of legal compliance Fraudulent businesses and schemes can wreak havoc, and getting a DBA is the surest way to protect yourself and your business from avoidable legal issues. If you trade under another name in a state where you need a DBA but you haven’t done the paperwork, you’ll be in trouble.  The last thing you want is to end up defending a lawsuit that could have been avoided by filing the correct ‘doing business as’ paperwork. There’s no reason not to; it’s quick, easy, and not too expensive. Disadvantages of a DBA 1. Little or no liability protection Unlike registering certain types of businesses, getting a DBA doesn’t protect your assets from liability if your company gets hit with a lawsuit. The DBA does nothing to separate you from your business; it’s simply a legally recognized alias.  Of course, that’s not the purpose of a fictitious business name. Whether you’re opening an LLC or a corporation, you shouldn’t rely on your DBA for protection. 2. Maintenance difficulties Managing too many DBAs under one legal business entity can be a hassle, especially when you’re planning on doing business internationally. That’s because some other countries will also require you to file registration of trade name paperwork.  When you have to repeat that process for multiple DBAs across dozens of countries, then keep on top of renewals, there’s every chance some important admin could slip through the cracks and cause you some major headaches.  3. No extra tax benefits When you register a business name in the form of a DBA, you’re only getting an alias you can use for clearer branding. You shouldn’t expect the DBA to affect your company’s tax status - that all comes down to your business structure. 4. Lack of exclusivity of business names Seeing as a DBA is not a trademark, it doesn’t offer you exclusive rights to the name you have chosen; it only allows you to conduct business under that name. This means that multiple businesses can conduct business using the same or very similar DBAs. By extension, you can’t use DBAs for legal paperwork, since they aren’t legal entities. It should be noted, however, that you can trademark a business name if you desire some extra protection. Final Thoughts Registering a DBA is an easy and inexpensive way to expand your business and create brand awareness. It’s the best way for small businesses to experiment with other goods or services without having to break the bank or go through the process of registering a brand new business. At the same time, you can also enjoy the privacy a DBA affords you. Now that you know how to get a DBA, we encourage you to follow the steps discussed here and get one if your business needs it.

If you’re planning to start a small business or are already a small business owner, you surely understand the importance of having a business plan. A good business plan can help you build a solid strategy, decide which resources you need, set a budget, and stay ahead of any potential complications that may happen along the way. Sounds like a dream, but not everyone knows how to write a business plan. That is why we’ve decided to write a comprehensive guide with all the important information summed up. By the end of this article, you should have a clear idea of where to start and how to develop a business plan that will make your business bloom. What Is a Business Plan? In short, a business plan is a document that includes your company’s goals and the steps you intend to use to achieve them.  Many entrepreneurs don’t even start developing a business unless they have a business plan set and ready. That’s because it’s important to put all your ideas on paper and see if they make financial sense. If your business idea doesn’t look promising on paper, it’s unlikely it will work in real life. Here are some elements you should think about while writing a business plan: Product goals Monthly goals and deadlines Financials for the first two years Profit and loss statements for the first three to five years Of course, as each business is different, you should adjust your approach accordingly. You don’t have to strictly follow any specific rules as long as you have all the fundamentals covered. Why Is a Business Plan Important? Business plans are important for both business owners and potential investors, and here’s why. If you’re just starting out, a business plan will keep you focused and help you position your brand. A solid business plan will help you: Prove that you’re serious about your business. If you have a successful business plan that shows your commitment, your partners and those looking to invest in your company will be confident about doing business with you. Determine your financial needs. One of the main purposes of any business plan is to help determine how much capital you need and for what. By allocating funds properly, you can plan ahead, which is especially important if you intend to ​​raise additional funding later on. Understand your competition. While creating a business plan, you can’t only focus on your company. You need to do a competitive analysis and review the market conditions as a whole. Knowing more about your main competitors will help you step up your game and boost your company’s competitive advantage.  Understand your audience. A business plan can help you better understand your customers and what they expect of you. It can help you make better products and services and tailor them to your customers’ needs. Reduce risk. By following the guidelines set in your business plan, you’re reducing the risk of investing in the wrong opportunities or missing the right ones.  Attract partners and investors. If you’re running a startup, finding prospective investors is the first order of business. Potential investors will be interested to know your goals and how you will go about pursuing them. They will want to see how you plan to manage stressful situations and whether you have an exit strategy. At the same time, prospective partners will want to check your business plan to see how it benefits them. As you can see, there are multiple benefits to making a business plan. It shows you are committed to your business and helps get funding, bring new business partners, reduce risk, and engage with your customers.  How To Write a Business Plan, Step by Step Now that you know all the basics and the advantages of a good business plan, let’s see how you can go about writing one. Here is a traditional business plan template: 1. Executive Summary First things first. Your business plan should start with an executive summary. The summary should include an overview of your company with a brief description of your product or service. It should summarize all your plans, ideas, and logistical details.  If written properly, your executive summary will attract potential partners and investors and convince them to read the rest of your business plan. The executive summary should include a short review of: Your business concept Your product description Your target audience The marketing strategy The current and projected financial status The information about your team 2. Company Description This is the part of a business plan where you should provide a detailed description of your company, including your company’s registered name and address and information about your products and services. You should explain your goal, what sets you apart from the competition, and what makes your business a good investment. Here are some of the particulars you should include in this segment of your business plan: Your business model Your business structure Your mission Your business history Business objectives Thorough information about your team and their salaries 3. Market Analysis Market analysis is one of the crucial parts of business plan writing. By conducting in-depth market research, you will get a better understanding of the current trends and the nature of your industry. It will also help you learn how to outshine the competition, which is extremely important, especially if you’re new in the business. One of the main questions you should answer in this part of your business plan is how big your target market is and how many people are interested in what you have to offer. That might sound overwhelming, but there are various sources you can consult.  You can do some academic research, check government statistics on particular demographics, or simply observe relevant news outlets. The more information you have, the easier it will be to make an informed decision. 4. Organization and Management This is the section in the business plan where you should describe the legal structure of your company. You should explain whether you’re running an S or C corporation, or if you’re operating as an LLC.  Furthermore, you should explain how your management team works and their roles and responsibilities. You should describe the hierarchy between all your team members and how each contributes to your vision. 5. Products and Services Your business plan should also have a dedicated section about your products and services. What exactly is your product? Who is it for? How much does it cost? Why is it better than what your competitors are offering? These are just some of the questions you should answer in this section. If you’re planning on adding some new products in the future, you should describe them as well and explain how they will contribute to your business. 6. Marketing and Sales To build a business plan, you need to define your marketing and sales strategy and how you plan to accomplish it. You should write about your sales process in detail and describe how you plan to attract and retain your customers. Of course, as the market conditions change, your marketing strategy will also change and evolve, and you can always adjust this part of your business plan accordingly. 7. Funding If your business needs funding, you should include that in your business plan. You should specify the type of funding and how much you need. You need to explain how you plan to use that capital, as that is the information your potential investors will be most interested in. Also, if you have any plans to sell the company at some point in the future, you should include that information as you write a business plan. 8. Financial Plan Having solid financial projections is probably the most important aspect of any business plan. Even if you have an excellent business idea and you’re invested in it, it won’t mean much unless you’ve figured out how to finance it. Each financial plan should feature a balance sheet, an income statement, and a cash-flow statement. A balance sheet gives an insight into how much equity you have in your business. Equity is the value the company’s shareholders would get if all of the company’s assets were liquidated and all its debts paid off. In plain terms, the balance sheet will show what you own vs. what you owe. The next segment your business plan should include is an income statement. An income statement is used to show a company’s financial performance over a given period of time. This statement includes all the necessary information about your company’s revenue, expenses, gains, and losses. So, whoever reads your business plan will be able to see how your business has performed in the past and whether or not it’s worth investing in. A cash-flow statement is similar to an income statement, but there are some differences. A cash-flow statement shows the source of cash but also helps track all ingoing and outgoing transactions. If the incoming cash is greater than the outgoing cash, your company has a positive cash flow.  And if it’s the other way around, your cash flow is negative, which can be a serious issue. According to some statistics, 82% of businesses fail because of cash flow problems, which is why you should regularly analyze your cash flow statements. Types of Business Plans Although there are some general guidelines, each business plan needs to be tailored according to your company’s needs and stage of development. With that being said, there are different kinds of business plans you can go for. The Operational Plan An operational plan is a plan that defines how each part of the team contributes to the company and its goals. It outlines the daily operations and tasks for over a year. A good operational plan ensures each manager and employee knows what’s required of them and understands their deadlines. Operational business plans are very important as they provide a roadmap for managing a business, but they can also be extremely helpful if you’re trying to get funding. They help assign human, physical, and financial resources, making it easier to reach your goals. The Strategic Plan The strategic plan is similar to the operation plan, with one major distinction. While an operational plan focuses on day-to-day operations, a strategic plan focuses on the company’s long-term goals and whatever is required to fulfill them. And while these are both action plans, a strategic plan heavily depends on an operating plan and its efficiency.  As a business owner, you need to ensure you have both operational and strategic plans in place, as that will make it much easier to achieve your business mission.  The Marketing Plan A marketing plan is another business plan example we cannot forget. It is a document that shows how you intend to promote and sell your products and services. It is an outline of your advertising strategy and all your promotional activities for a specific period of time.  Some of the key elements each marketing plan should cover include market research, marketing objectives and activities, the current business marketing positioning, marketing budget, and KPIs that should be tracked over time. Having good marketing can help you raise brand awareness, increase market share, and enter new niche markets. The Financial Plan Financial plans are another vital part of any business plan. As the name suggests, this document focuses on a company’s financial goals and the strategies it needs to employ to achieve them. A financial plan is especially important if you’re just starting a business, as it will show whether or not your business idea is profitable.  Each financial plan should include an investment budget, a financial budget, an operating budget, a cash-flow budget, and a personal expense budget. Once you have all this information in place, you should not have any trouble with your business planning and achieving your business goals. Just make sure to review your business plan periodically to see if it requires any adjustments. Final Thoughts As you can see, the process of writing a business plan isn’t as perplexing as it may seem at first, and the final product can be very beneficial to your business. By following the guidelines set in our article, you should be able to make a business plan outline and start developing your business strategy. All you have to do is define where your business currently is and where you want it to be in the future.