Starting A Business Checklist

How to start a new business

There is no question about it: starting a new venture is both exhilarating and terrifying. It can be helpful to break down the process into smaller steps with a checklist on how to start a new business. This will make the matter more manageable and give you the momentum you need to get to your first sale. If you are an entrepreneur who has a great concept for a business but are unsure how to get from the idea phase to the final product, take a look at this checklist for guidance. This writing is informed by representing thousands of business owners since 2005; additionally, the best data comes from my first-hand conversations with business owners and their leadership team. When you open a new business, ensure you comply with employment law by consulting with our employment law attorney for employers.

Do market research

First on starting a business checklist is to research the market. Perhaps you already have an idea simmering, or maybe you are prepared to create something from scratch. Regardless of the case, you should first conduct some research. Look into how much demand exists for your service or product, in addition to any competition. This information can assist you in narrowing down your idea.

Market research includes both first and secondhand sources. It involves surveys, focus groups, and interviews (primary), as well as reviewing market reports and government statistics (secondary).

Test the concept

Starting a business checklist must include testing the business concept. Prior to diving into your business, you should test the concept to ensure that it is based on a legitimate market need. Be sure to conduct a competitive analysis to see if a service or product already exists. It may be necessary to do beta testing or create a prototype to get feedback from potential customers on the service or product before it is launched.

Study your pricing model

There are different ways to price your service or product, including a subscription mode, premium pricing, or flat-rate pricing. The model you choose should help you land on the proper balance of revenue and value, in addition to fine-tuning the price for each item.

Make a business plan

Vital for starting a business on the checklist is writing a business plan. A business plan is critical for when an entrepreneur applies for funding. It can also help steer operations. According to the Small Business Administration, the purpose of a business plan is to help identify financing, demonstrate that you have tested the market, and fully go over the execution strategy.

A business plan typically is composed of financial projections, market analyses, as well as details concerning business operations. The plan should be revisited as the company grows, to reflect updated goals and expansion.

Practice the sales pitch

You should focus on what separates your business from the others. When you are just beginning, you should create an elevator pitch that establishes what makes you different and why customers and investors should pay attention. An excellent sales pitch will go into what you sell or do in two or three sentences.

Secure funding

There are plenty of funding sources for new companies. Some financing options include SBA loans, short-term loans, angel investments, crowdfunding, working capital loans, and venture capital.

A number of entrepreneurs will use their personal savings as initial capital or will ask friends and family for contributions. Use your business plan to pick the course that is best for you.

Choose a business structure

Startup checklist includes deciding on the business structure for starting a business. The structure you choose for your business has liability and tax implications. Whatever structure you pick, whether it is a limited liability company, a sole proprietorship, or a nonprofit, you may need the help of a lawyer if it is more complicated than a sole proprietorship to set up. To avoid tax problems, be sure to seek guidance from the beginning.

Secure permits and licenses

All business startup checklist must include obtaining licenses and permits for the new business. Certain businesses, like cafes and restaurants, require specific licenses to operate. An entrepreneur may need many licenses and permits depending on their location and industry.

Open a bank account for the business

We cannot forget to include to open a bank account on our starting a business checklist. It is important to separate personal and business finances, even if operating a sole proprietorship. Be sure to have a separate bank account for your company to keep cash flow trackable and organized. This will make it easier to do taxes.

Organize accounting

Think about tax season ahead of time and organize your accounting system. You will want to organize your income expenses into three different categories: inventory costs, business income, and other expenses (rent, payroll, overhead, etc.). You may wish to bring on an outside accountant to assist you with staying organized as your business grows.

Build your supply chain

If your business idea concerns a new product, you will have to identify a way to get it produced that is scalable. While you may be able to do this on your own in the beginning, as your business grows, you will not be able to do it all yourself. To get started, you can get referrals from other business owners over forums and social media. This is a good way to get feedback on various suppliers you have been studying. You can also use a directory to identify available manufacturers.

File a patent or copyright

After you have created a plan for your service or product, you will want to safeguard your intellectual property via a trademark or copyright. You may file to protect your company’s logo, name, creative ideas, content, or original creations, as well as a service offering or product design.

Choose where to sell

Many businesses launch online prior to investing in a physical space. Some of these companies include Casper, Everland, and Warby Parker. By launching online, you can keep costs down. However, there are some significant benefits involved in having a physical location.

Create a brand

It is important that you establish a strong brand identity, including a logo, name, and branding materials. A brand identity should convey your company’s mission, personality, and values. This will help your company distinguish itself from competitors and reach new customers. It would be wise to work with an experienced designer who can communicate your brand identity.

Design product packaging

After you have established a brand, you should create the shipping materials, packaging, and any physical store assets that can communicate this identity. Service businesses should think about using branded invoices or putting a logo on vehicles to encourage brand recognition.

Get a lease

If you choose to open a physical location, you will have to identify real estate property. Usually, this means negotiating a business lease. You should think about how much space is required, study the neighborhood, and look through the contract carefully prior to signing.

Choose the proper insurance policies

The insurance you pick will depend on the size of your business, as well as your liabilities and assets. The policies you may need include professional liability insurance, product liability insurance, workers’ compensation, general liability insurance, small business health insurance, and property insurance.

Create a website

A website helps customers learn more about your company. Create a business website that communicates your story, which can help build excitement prior to your companies grand opening. Even if an entrepreneur does not plan to sell their service or product online, they still need a website that can convey information like location, hours, and phone number.

Register the business

A new company may need to register with the state government, the federal government, or it may not need to register whatsoever. In general, if an individual wants to file for a trademark, or if he or she requires a federal tax ID, it may be necessary to register with the federal government.

Choose the right tools

When an entrepreneur first sets up their business, they may not need fancy equipment to get started. However, they will need the basics, such as wireless Internet, telephone service, and a point-of-sale system. Office equipment, such as chairs and desks, may also be needed.

Get ready for order fulfillment

Certain restaurants and retailers have to think about getting the product to the customer. If the business offers ordering online, what logistics partner can ensure the item is delivered? Is curbside pickup offered? Retailers will have to determine what shipping partner is most reliable and has the best rates. Restaurants may consider working with a third party such as Caviar or Uber Eats.

Create social media channels

These days, customers often discover new brands on social media. You should create an Instagram, Facebook, and Twitter profile for your business. You can share news about your grand opening on these platforms, as well as launch your products and create buzz.

Hire employees

If it fits within your budget, you can hire an employee. You should find someone trustworthy, to whom you can delegate some of the daily operations. This will allow you to focus on the bigger picture. This employee may be a partner, a manager, or an hourly worker who can watch the store.

Advertise the grand opening

If you’re ready for your first customers, you should make sure they know that you are open for business. Post on your social media channels and in local media outlets about your grand opening. Think about running an opening day discount or promotion to increase foot traffic.

Open your doors

Congratulations, you have opened your business. Good luck!