Starting your own business is a huge accomplishment. Working as an entrepreneur gives you independence and the ability to pursue your passion. However, there are several tasks you’ll need to complete to get your new venture up and running. Here are seven things to square away before opening the doors of your small business for the first time.
1. Develop a Business Plan
A business plan serves as your operational road map to success. It’s something that you’ll be able to refer back to as your business grows and changes. If you’re not bootstrapping your venture, you’ll also need a business plan to secure funding.
Start by researching your competitors and identifying your target audience. This will help you determine where your company will fit into the current market landscape. Your business plan should also contain a mission statement, descriptions of your products or services, your staffing plans, and your long-term financial strategy.
2. Choose a Legal Structure
The legal structure you choose for your business will affect how you pay taxes and handle business liability. There are several possible legal structures to choose from. If you’re operating alone or as a team of two people, you might opt for a sole proprietorship or partnership. Other options include a C corporation, S corporation, or a limited liability company (LLC). All three structures limit your liability, but they involve different methods of taxing company profits.
In addition to choosing a legal structure, you’ll also need to register your business with your state and local governments. When you register, you’ll get an employer identification number and be able to hire employees. Depending on your industry, you may also have to obtain additional licenses in order to operate legally.
3. Set Up Banking and Payment Processing
Before you launch, you’ll need to find trustworthy financial service providers. Start by setting up a business bank account. Even if you’re a sole proprietor, you’ll want to keep your business and personal finances separate. Look for a bank or credit union that caters specifically to small businesses in your industry.
You’ll also have to decide how you want to let your customers pay you. Software designed for small business credit card processing allows you to process payments quickly. To make doing business with you even more convenient, look for platforms that allow you to accept ACH and digital payments. You’ll also want to consider payment processing fees and how they fit into your budget.
4. Find a Tax Advisor
Business taxes are more complex than personal taxes. Don’t attempt to do them yourself, especially when you’re just starting out. Hire a tax advisor before you launch your business to avoid headaches down the line.
Your tax advisor will let you know when you need to make payments. They’ll also assist you in navigating the complexities of state and local taxes, both of which can be daunting. A tax advisor will help you factor taxes into your long-term budget and avoid any unwelcome surprises.
5. Purchase Business Insurance
Business insurance protects you financially from liability for things like bodily injury and property damage. If a customer slips on your sidewalk or your delivery driver dings someone’s car, you’re covered. Should someone file a lawsuit against you, being insured means you won’t have to pay legal fees or settlement amounts out of pocket.
Your business should at least carry general or professional liability insurance. However, you might also require commercial property insurance or directors and officers insurance if a board helps you run your business. Talk to a local insurance expert to determine what types of insurance you need and take out the relevant policies.
6. Create a Website
There are few businesses today that can do without having a website. A website serves as your company’s online home, and it’s also the way your business makes a first impression on prospective customers. Your site should provide clear and concise information about your products or services. It should also share your contact information and your location and hours, if applicable.
Your small business website can be simple at first. Platforms like Squarespace and Wix make it easy to create a site yourself. However, as your business grows, it pays to hire a professional web designer. You will also likely want to work with an SEO professional to optimize your site for Google and other search engines. Implementing a solid SEO strategy will make it easier for customers to find you via search.
7. Market Your Business
Before you launch, you’ll need a marketing strategy to reach potential customers. Start by reviewing the target audience research you conducted when developing your business plan. Use those insights to identify marketing strategies that are most apt to resonate with them.
Your business can employ multiple digital marketing channels to promote your offerings. Begin by setting up a Google My Business profile to increase traffic to your website and physical location, if you’ve got one. You may also want to implement pay-per-click ads via Google or Meta. As interest grows, build an email list to use for direct marketing.
And don’t neglect to use local marketing strategies to find new customers. Look for events in your area where you can promote your business. Networking with other businesses in your community is also an effective way to spread awareness.
Final Thoughts
There’s so much to celebrate when starting a small business, but be sure to check these seven tasks off your to-do list before your initial launch. Doing so will set you up for success, even as your business grows and changes.