Thinking about launching a small business? You are not alone. Every year, thousands of people around the world start businesses to sell their products and services. Some of those businesses thrive but many fail. The more information you have about starting a business, the more capable you’ll be to form a company with the potential to develop into a stable source of income.
So, rather than guessing where to begin, follow this 6-step checklist of the things you need in order to start your small business right the first time.
Table of Contents
1. Open the Company Bank Account
Take some time to select the best bank to open the company bank account with. The right bank for your company comes down to your banking needs, so writing down your needs can help narrow your focus to what you should be looking for. Schedule meetings with different banks and ask questions about how they work with small businesses in order to find the best one for your business.
In addition, check what the bank’s specific requirements are to open a business account. Some banks have fairly simple requirements, while other banks’ requirements are very complex.
2. Lease Office Space
Depending on the type of business you’re launching (office, warehouse, or retail), you’ll need to arrange for space to be leased. Start by determining the amount of rent you can afford. Then decide what neighborhood would be best and find out what the average rents are in that area. Before signing the commercial lease, be sure to examine it carefully and negotiate the best deal.
Once you have leased the space, make sure to arrange for office furniture and any equipment and supplies you might need, such as an easy-to-use commercial printer to help you work more productively, multipurpose machines, computers, smartboards, and so on.
3. Think About What Tech Tools You’ll Need
One of the most critical steps is to research and choose the best tools that will help you manage your small business. Today, there are tools for almost everything, from communicating with customers to accounting. Using tools like cloud storage, project management software, marketing automation, and Microsoft Excel can help you streamline business processes, facilitate many repetitive tasks, and help you gain a competitive edge.
Most of these tools are low-cost and easy to implement but if your business relies on a certain tool heavily, you might need to invest some extra money. For instance, most businesses use only a small portion of Microsoft Excel because they don’t have properly trained personnel to support the big number of applications and spreadsheets designed to increase the efficiency of operations. So, if your company relies on Microsoft Excel, you should consider using professional Excel support services that will enable you to optimize operations and train your staff to get the most out of it.
4. Get Business Insurance
Purchasing the right business insurance is an important step to take before the official launch. Incidents like theft, property damage, or customer lawsuits can be quite expensive, so you need to make sure you are properly protected.
There are several basic insurance plans for small businesses. For instance, if you are planning on hiring employees, you’ll need unemployment insurance and workers’ compensation. Most small businesses are also advised to invest in general liability insurance which covers bodily injury, property damage, and personal injury.
5. Obtain the Necessary Permits and Licenses
Most businesses don’t need a federal permit or license. However, if you are engaged in certain activities, such as investment advising, drug manufacturing, selling alcohol, tobacco or firearms, etc., you should get in touch with the responsible federal agency to determine the requirements.
Some professions and occupations such as accountants, physicians, building contractors, and real estate agents, require a state permit or license. Laws vary from state to state, so it’s best to contact the responsible state agency for more information.
If your business sells retail goods, you’ll need to obtain a seller’s permit from your state. Finally,
most states require you to obtain a business license, even if your business is home-based.
6. Hire Employees
Unless you are planning to be a solopreneur, you are going to have to hire a team of skillful employees in order to get your business off the ground.
Since the people you recruit will either make or break your company, you’ll need to pay special attention to your founding team, define the roles and responsibilities, and ensure that team members work well together.
If you intend to hire employees, you might need to register with the appropriate state agencies and obtain unemployment insurance/workers compensation insurance. In addition, you will need to obtain your EIN (Employer Identification Number, also known as an Employer Tax ID) from the IRS. This is a tax number that you as an employer need to set up in order to run the business (it is not something you will have to get for each employee).
Final Thoughts
When starting a business, things like choosing and registering your business name and creating a logo are obvious, but what about the other, less-heralded but equally important tasks? The workload can pile up fast, but the tips outlined here can save you lots of trouble and give you a simple checklist you can use as a starting point.