Starting a new business can be a fun and exciting time. You get the thrill of running your own business according to your rules. You can truly pursue a passion and make money off of it.
It’ll be a challenge, though. There’s a lot of prep work you have to do and plenty of unforeseen obstacles. To better prepare yourself, take a look at these five helpful tips when starting a new small business.
1. Do your research
When starting a new business, one of the first things you need to do is research the market. You need to carefully evaluate how well you might fare entering a new industry.
Some basic internet searches are a good starting point, but you should ask people in your targeted industry how business goes. They may view you as potential competition, so be careful about how you structure your questions. Instead, focus on obtaining some general knowledge about the industry.
While you are encouraged to ask others for help, you should also be asking yourself some common questions. Is there a demand for whatever product you plan to sell? What kind of unique angle will you take to separate yourself from the competition? These questions will provide a framework for your research.
2. Develop a plan
Once you feel comfortable with your research, start to develop a plan on how you will run and develop your business.
While you can create a complex plan that forecasts how your business might fare ten, or even twenty, years down the line, focus on what you need to do to start and get returns within five years. You need to decide what your business will stand for and why it has the potential to be successful. Your plan should also include anything relevant you found during the research phase.
You’ll also need to take into account your costs, marketing strategy, customers, potential partnerships, and how you will run the day-to-day business. Now, odds are you won’t follow your business plan to a tee, but it’s the launching point you’ll need to get things started.
3. Open a bank account
When you start accepting and spending money, you’ll need to set up a business bank account.
Opening a business bank account is similar to opening a personal bank account. Some common items you’ll need to open a business bank account are personal identification (like a birth certificate or a social security card), business licenses, and formation documents.
It’s a pretty important step, and you shouldn’t use your personal bank account. Business bank accounts can offer some unique benefits that can help when you’re starting. You should do your research and see what kind of offers you can get.
4. Decide on your brand
Your brand is how your customers will perceive you. Everything from your business name, logo, website, and marketing materials matters, so take careful consideration in how you craft it.
If you’re not sure how you want to market yourself, consider consulting with a marketing professional. They can help with guiding your business to your desired image.
Of course, you can always rebrand if you feel your image doesn’t match your business. Do be careful, though. You don’t want to quickly or constantly rebrand yourself, as it shows a lack of confidence in your customers.
5. Get required documents
This one will vary on a case-by-case basis, but you’ll probably need some type of license, permit, or document to show you can legally run a small business.
If you’re based in the U.S., you’ll have to take into account documents you’ll need at both a federal and state level. This can include things like a federal and state tax ID number.
Documents may also have an expiration date and fee attached with them. You’ll need to take account of that information when acquiring these documents.
When you’re starting a new small business, it feels like there’s a lot to be done in a short amount of time. With careful planning and hard work, you can avoid feeling completely overwhelmed and set your business on the path to success.
