CHECKLIST: 10 Necessary Steps To Launching A Small Business
There is a lot that goes into launching a small business.
You need to come up with a great idea, develop a sound business plan, get funding, and figure out marketing.
In this blog, we will cover 10 necessary steps every business must take before launching a business.
Treat it like your checklist.
10 steps to launching a small business
1. Come up with a profitable business idea
Coming up with a great idea is harder than you think.
There are 2 types of entrepreneurs, those that are driven by their passions and interests and others who are driven by the market and the opportunity.
Ideally, you’d combine the two.
If you’re a passion-driven entrepreneur – ask yourself what are you good at? What is that you can do fo hours without getting bored? Is there a way to turn your passion into a business? To answer this, you have to do market research and look at the sales of your competitors. Is the market piping hot? If the answer is yes, and you can offer something better than your competitors, there is a big chance you’ll succeed.
Once you’ve come up with a few ideas, it’s time to take a closer look at each one. First, ask yourself if there’s a need for your product or service. Is there a target market that you can reach? Is it cost-effective to reach that market? And most importantly, how much money you can realistically make after all the costs/investments.
For example, the recruitment industry can be very profitable and is straightforward to set up. If this is something you are considering, read this recruitment business plan written by an ex-recruitment agency owner, who now educates aspiring recruitment agency owners by teaching them all about candidate and client attraction, sales forecast, and more.
2. Develop a business plan
The next step is to write a business plan. This document will outline your business goals and how you plan to achieve them. It’s important to have a clear and concise business plan before moving forward with your small business.
Your business plan should include:
1. An executive summary:
This is a brief overview of your business idea and how it will be profitable.
2. A description of your product or service:
What are you selling? What are its features and benefits?
3. A market analysis:
Who is your target market? What are their needs and desires? How large is this market?
4. A sales and marketing plan:
How will you reach your target market? What sales strategies will you use? What’s your pricing strategy?
5. A financial plan:
This section should include your start-up costs, projected income and expenses, and funding requirements.
3. Choose a business legal structure
One of the first decisions you’ll need to make when launching a small business is what legal structure to choose. Small businesses have four main options:
- Sole proprietorship
- Limited liability company (LLC)
Each option has its own advantages and disadvantages, so choosing the right one for your business is important.
Quick overview of each option:
This is the simplest and most common type of business structure. A sole proprietorship is owned and operated by one person, and there is no legal distinction between the owner and the business. This means that the owner is personally liable for all debts and obligations of the business.
A partnership is similar to a sole proprietorship, but two or more owners are involved. Partnerships can be either general partnerships or limited partnerships. In a general partnership, all partners are equally liable for the business’s debts. In a limited partnership, at least one general partner is liable for the business’s debts, and one or more limited partners are not.
Limited Liability Company (LLC)
An LLC is a legal entity that offers some of the same protections as a corporation but with less paperwork and fewer regulations. Owners of an LLC are called members, and they are not personally liable for the debts of the business.
A corporation is a legal entity that is separate from its owners. The owners of a corporation are called shareholders, and they are not personally liable for the debts of the business. Corporations can be either for-profit or non-profit.
4. Register your business
The next step is to register your business with the state/country in which you will be operating. Each state/country has its own requirements for business registration, so it’s important to check with your state’s rules and regulations.
You will also need to register company name for your business and make sure it is available.
Registering the company name is a must, especially when it comes to copyright and legal issues that might crop up from copycats.
5. Obtain licenses and permits
Depending on the type of business you are starting, you may need to obtain certain licences and permits from the federal, state, and local governments.
For example, if you are selling food or alcohol, you will need to obtain the appropriate permits from your state and local health department.
6. Open a business bank account
You can open a business bank account once you have registered your business and obtained the necessary licences and permits. This will help you keep your personal and business finances separate. It’s important to have a business bank account because it will make it easier to track your expenses and income and to apply for loans or lines of credit in the future.
7. Get insured
Another important step in launching a small business is to get insured. There are many different types of insurance that businesses need, such as property insurance, liability insurance, workers’ compensation insurance, and so on. The type of insurance you need will depend on the type of business you are starting and the laws in your state.
You can attend insurance conferences to find out which type of insurance is best for you.
8. Create a marketing plan
No matter what type of business you are starting, you will need to market it in order to attract customers and grow your sales. There are many different ways to market a business, such as online marketing, social media marketing, advertising, public relations, and so on.
In addition, it is vital to create a website for your business, you can use Web Design Services. The best way to market your business will depend on your budget, target audience, and marketing goals.
9. Hire employees
If you are starting a small business that requires employing staff , you will need to take care of all the necessary paperwork and compliance issues. This includes things like getting an employer identification number (EIN) from the HMRC, applying for workers’ compensation insurance, and so on.
10. Launch your business 🎉
Once you have taken care of all the necessary steps above, you are ready to launch your small business! This is an exciting time, but it’s hard work, which takes dedication, and perseverance.