Starting a new business is an exciting and transformative journey, but it’s also a demanding one. From the spark of an idea to opening your doors, there are key steps every entrepreneur must take to ensure their venture is built on solid ground. Whether you’re launching a side hustle or a full-time endeavor, having a clear roadmap is essential. Here are ten fundamental things you need to get started, explained in a practical way to help you move from planning to execution.
1. A Distinct Business Name
Your business name is more than just a label—it’s the foundation of your brand. A memorable, unique name helps potential customers find and identify you. Before settling on one, check its availability. Search domain registries for matching website addresses and consult your state’s business registration database to ensure the name isn’t already taken. You’ll also want to confirm that your name isn’t too similar to an existing trademark to avoid legal headaches down the road.
2. The Right Business Structure
Choosing the correct legal structure is critical for protecting your personal assets and aligning with your business goals. Common options include sole proprietorships, limited liability companies (LLCs), and corporations. Each has its own advantages, tax implications, and compliance requirements. For example, an LLC can shield your personal assets from business liabilities, while an S Corporation might offer tax benefits if you plan to scale. Consulting a lawyer or financial advisor can help you make the right decision.
3. Licensing and Permits
Depending on your industry and location, you’ll likely need various licenses and permits to operate legally. This could include a general business license, zoning permits, health department certifications, or specific professional licenses. Research your state and local regulations to identify what applies to your business. Failing to obtain the proper licensing can lead to fines or even force your business to close, so this is not a step to skip.
4. A Tax Identification Number
Also known as an Employer Identification Number (EIN), your tax ID is issued by the IRS and functions as your business’s social security number. It’s required for paying employees, filing business taxes, and opening a business bank account. Obtaining an EIN is a straightforward process and can be done for free on the IRS website. Even if you’re a sole proprietor, an EIN can help separate your personal and business finances.
5. A Business Bank Account
Mixing personal and business finances is a mistake that many new entrepreneurs regret. Open a dedicated business bank account to keep your financial records clean and easy to manage. This will make tax season far less stressful and help establish your business’s credibility. Look for accounts with low fees and features like integrations with accounting software or access to small business loans.
6. A Plan for Inventory or Services
Whether you’re selling products or offering services, having a solid plan for delivery is essential. For product-based businesses, inventory management can make or break your success. Start by identifying reliable suppliers and tracking costs. For service-based businesses, focus on creating repeatable processes that deliver consistent results. Either way, ensure your pricing strategy allows for both competitiveness and profitability.
7. Written Processes and Systems
Even if you’re running a one-person operation, documenting your processes can save you time and prevent errors as your business grows. From how you onboard new customers to how you handle returns or refunds, having a clear system keeps things organized. It also makes it easier to train future employees and ensure your operations run smoothly in your absence.
8. A Marketing Strategy
No matter how excellent your product or service is, people won’t buy it if they don’t know it exists. A marketing strategy helps you reach your target audience and build awareness. Start by identifying who your ideal customer is and where they spend their time—online, offline, or both. From there, explore tactics like social media, email marketing, local advertising, or even attending industry events. Consistent branding and messaging across all your marketing channels are key to building trust.
9. A Functional and Professional Website
A website is the modern-day storefront, even if you’re not selling anything online. It’s often the first place potential customers will go to learn about your business, so it needs to be both functional and professional. Include essential details like your services, contact information, and customer testimonials. If your website includes e-commerce capabilities, prioritize a smooth user experience and secure payment processing. Platforms like Shopify or Squarespace make it easy to create a polished site without needing extensive technical skills.
10. Business Insurance
Insurance might not be the most exciting part of starting a business, but it’s one of the most important. Depending on your industry, you may need general liability insurance, professional liability insurance, or even commercial property insurance. These policies protect you from lawsuits, accidents, and other unexpected events that could threaten your livelihood. Research the coverage that’s most relevant to your business, and speak with an insurance agent to tailor a plan to your needs.
Bringing It All Together
Starting a business is a balancing act between big-picture planning and handling the day-to-day details. Each of these ten essentials is interconnected, and getting them right from the start will set the stage for long-term success. From choosing the right name to setting up a website and everything in between, taking the time to prepare properly ensures your business is ready to grow and thrive.
If you’re feeling overwhelmed, don’t hesitate to reach out to professionals for guidance. Accountants, business lawyers, and marketing experts can provide the expertise you need to navigate the complexities of entrepreneurship. The key is to take it one step at a time and keep your focus on the ultimate goal: building a business that you’re proud to call your own.
