Do you have a commercial idea that lights you up? Or maybe you want the freedom of being your own boss? Either way, once you’ve made the decision to create your own business, there are three key areas you’ll need to cover if you want to make your dream a thriving reality.
Starting a small business from scratch can easily become overwhelming. Many startups make the mistake of rushing in with guns blazing, only to come crashing down in two to three years because they didn’t build the right foundation.
This guide explains all the the logistics and financial planning to set you up for long-term growth. Don’t miss Part 1 for the mindset needed to overcome challenges, plus Part 3 for the marketing steps that will earn you lots of customers.
If you’re dreaming of being your own boss, but haven’t fully decided yet what type of business is the right fit, this guide is for you: Most future-proof small business ideas you can start today.
And if you're looking to bringing new ideas to life without any cost barrier, check out the Business Starter Kit – get all this for free: LLC registration, a .com domain, business email, easy website builder, SEO tool to get found online, and social media tool to for fast posts to grow your reach. What’s stopping you?
From planning, funding, and accounting, to data backup and security, any cracks in your business operations can lead to big problems as you grow your startup.
Here is a checklist of the critical admin To-Dos that every business needs to cross off their list so they don’t end up making things much more complex than they need to be, or in the worst case derail their business.
You might be tempted to first focus on product research or brand creation, but nailing down a Business Plan as your first step is the wisest move for startups, because it will give you a solid structure to lean on.
A good Business Plan will help you organize all the moving parts, and is also crucial if you intend to seek funding. Here’s what you need to know:
Wondering where to start? There are a number of Business Plan software tools these days to help you. Some popular platforms to check out while shopping around for the best fit are:
A small business management system (SBMS) is crucial for streamlining your operations, productivity, and customer service to increase overall efficiency.
You'll want to clarify and define your processes for efficiently managing these logistical essentials:
It’s a good idea to invest in tools that will help you stay on top of customer management, inventory, and payroll to keep things headache-free from the start. Do your own research to explore what suits you best, but here are some of the most popular examples for small business owners, based on affordability, ease of use, and scalability:
Inventory Management
Payroll Management
Customer & Sales Management
Keep these factors in mind when setting up your small business management system:
As with the Business Plan, financial planning may seem like a boring step that you can put off until later, but it’s a vital part of laying a strong, sustainable foundation.
First be sure to calculate your startup operating costs, to make sure you don’t stall at a crucial stage of growth. Bear in mind that it takes most startups at least a year to become profitable, so it may not be your main source of income for some time.
That said, the advantages of bootstrap financing are that you get to keep full ownership of your venture and finances. Here are some tips to help you tighten your purse strings: How to save money as a small business.
The majority of startups need some sort of outside financing. Careful financial planning, along with a good Business Plan, will be the key that unlocks this door. Follow these steps:
There are a number of avenues you can look at to help finance and grow your startup. It’s also common for business owners to use a mix of options.
Tracking expenses and efficient budget management can make or break small businesses, especially when you first start out. So it’s a good idea to use a software tool to keep this side of things tightly managed.
There are a variety of options, but to get you started in exploring what will best suit your needs, here are some of the most popular platforms for their affordability, ease of use, and useful features:
Liability insurance protects you against potentially crippling financial costs that can suddenly spring up. Ultimately it gives you peace of mind, knowing that you’re covered against potential lawsuits or claims, so you can focus on growing your business.
Here’s a summary of the advantages:
You can opt for general liability insurance, which protects you if someone is injured on your property, or as a result of your company's activities. And there are additional policies to choose from depending on your specific needs, such as:
With the rise of hackers attacking smaller platforms these days, cyber insurance is a good idea. It will give your startup comprehensive cover against technology-based threats — IT infrastructure risks, systems failure, cyber attacks, data breaches, liability, legal costs, and more.
Registering your business, otherwise known as Business Formation, gives your startup a strong foundation, including legal, financial, and operational perks.
Going legit puts your startup on track for sustainable growth:
Whatever type of business structure you choose, know that you can always change it later as your needs evolve. Here are some tips to make going legit easier.
When starting a small business in the US, there are various licenses and permits you may need to obtain depending on your industry, location, and operations.
Unfortunately these days, it seems like you need them for just about everything. Here are the common types of licenses and permits:
Each state and local jurisdiction may have specific requirements, so you’ll want to check with your city or county office to confirm their most current regulations.
If you don’t want to deal with this bureaucratic headache, let’s explore your options. In a heavily regulated sector, the assistance of an experienced professional could be well worth the extra price.
While using professionals is an extra cost, if you weigh that with the stress and time involved in trying to figure it out yourself, not to mention the potential cost of mistakes and delays, they might be well worth their fees.
This three part guide explains the Three Pillars that create an unshakeable foundation for a small business startup, so you’re all set for long-term growth. Part 2 has covered the logistics to create a rock-solid foundation, like business registration, financial planning, and permits. Don’t miss:
So as not to overwhelm, we’ve focused purely on what you need to know in the early stages of starting your small business. But we link to more advanced guides throughout, so you can learn more when you feel ready.
If you want a quick steer on the right tools to make starting a small business easier, including a short Quiz that offers recommendations based on what stage your business is at, check out the Build & Grow Hub.
And if you're looking to bringing new ideas to life without any cost barrier, check out the Business Starter Kit – get all this for free: LLC registration, a .com domain, business email, easy website builder, SEO tool to get found online, and social media tool to for fast posts to grow your reach. What’s stopping you?
What are the benefits of writing a Business Plan?
Nailing down a strong Business Plan as your first step is the wisest move for startups, because it will give you a solid structure to lean on. If done right, it will help you organize all the moving parts, prevent misunderstandings with people that work for you, and help you gain funding if you need it.
Wondering how to start writing a Business Plan? There are a number of software tools these days to help you. This guide will give you some of the most popular and affordable options
Why is financial planning important for startups, and what is the first step?
As with a Business Plan, financial planning plays a vital part of laying a strong, sustainable foundation, so your startup can sustainably grow over the long-term. .
First be sure to calculate your startup operating costs, so you don’t stall at a crucial stage of growth. Bear in mind that it takes most startups at least a year to become profitable, so it may not be your main source of income for some time.
This guide walks you through the crucial financial planning steps, including saving money, investor options, budget tracking, and liability insurance.
What is business formation?
Also called business registration, this is the process of establishing your business as a company with a separate legal entity, by registering it in your state.
This guide gives you the know-how and tools to make it easy, including further guides to help you choose between different forms of company, such as an LLC or CORP.
Do I need a business license, and how much does it cost?
When starting a small business, there may be licenses and permits you’ll need to obtain depending on your industry, location, and operations. The cost will vary accordingly. This guide gives you a list of the most common ones, as well as who you can turn to for help if the bureaucracy gets too complicated.
From starting up to creating your site, here’s everything you need to make big splash online.
guideRead now
18 minsguideRead now11 minsguideRead now12 minsguideRead now10 minsguideRead now9 minsguideRead now10 minsguideRead now8 minsguideRead now9 minsguideRead now11 minsguideRead now8 minsguideRead now6 minsguideRead now9 mins
Need help? We're always here for you.