Starting a New Business
1. Test your concept
Before you dive in, test your business idea to make sure it’s based on a valid market need. Perform competitive analysis to make sure your product or service doesn’t already exist. Find out if there’s a solid customer base who will want what you have to offer.
2. Business Plan
3. Sales Pitch
Hone in on what makes your business different from everyone else’s. When you’re just starting out, you must craft an elevator pitch that articulates what sets you apart and why investors and customers should care. A great sales pitch will explain what you do or sell, to whom, and why in two to three sentences.
4. Find Funding
5. Decide on a Business Structure
Sole proprietorship, limited liability company (LLC) or nonprofit: the way you structure your business entity has tax and liability implications. No matter which business structure you choose, if it’s more complicated than a sole proprietorship, you will need a lawyer to help set it up correctly. Consult an expert from the start to avoid any tax complications down the road.
6. Get the right license and permits
Some businesses, like restaurants and cafes, need specific licenses to operate. Depending on where you operate and your industry, you may need several permits and licenses. Check this list from the SBA to find out what, if any, you need to procure.
7. Open a business bank account
Even when you start a sole proprietorship, it’s critical to keep your business and personal finances separate. Open a separate bank account for your new entity to keep your cash flow organized and trackable for when it comes time to do your taxes.
8. Organize your accounting
Anticipate tax time and set up your accounting system to make April that much less stressful. Organize your expenses and income into three categories: business income, inventory costs and other expenses (like payroll, rent and other overhead). Find and hire an outside accountant or buy an accounting tool to help you stay organized as you grow your business.
9. Develop your product/service
Does your business idea revolve around a new product? Some entrepreneurs need help getting their concept made into a physical prototype. Work with a partner who can take your initial idea, work on a design and get it manufactured for distribution through a partner or online store.
10. File a copyright or patent
Once you have a solid plan for your product or service, protect your intellectual property with a copyright or trademark. You can file to protect the rights to your company’s name, logo, content, creative ideas or original creations, in addition to a product design or service offering.
11. Decide where to sell
There are many companies that launch online before moving into a physical retail space. Warby Parker, Glossier, Casper and Everlane are all companies who were founded as online-first retailers. Launching online can be a good way to keep costs down, but there are some serious benefits to having a brick-and-mortar location.
12. Negotiate a lease
Should you decide to open a storefront, you will need to find real estate property. That usually means negotiating a business lease. Make sure you know how much space you need, carefully vet the neighborhood and read the contract thoroughly before signing.
13. Get the right insurance policies
14. Set up a website
Your website is crucial to help customers learn more about your brand. Build a business website that tells your story to build excitement before your grand opening and to help people learn about your product or service. Even entrepreneurs who don’t intend to sell online need a website with their store hours, location and phone number, at a minimum.
15. Register your business
New businesses may need to register with their state government, the federal government or may not need to register at all. Generally speaking, if you want to file for trademark protection or if you need a federal tax ID, you will need to register with the federal government.
16. Get the right tools
17. Set up your social media channels
Social media is how many customers discover new brands. Create Facebook, Instagram and Twitter profiles for your business. These platforms are where you can share news about your upcoming grand opening, launch your products and generate buzz.
18. Hire an employee
If you have the budget, it’s time to bring an employee on board. Find someone you can trust to delegate part of the day-to-day operations so you can continue to focus on the big picture. This might be a manager, a partner or your first hourly worker who can oversee the store.
19. Advertise your grand opening
20. Join the chamber and open your doors!