A record number of small businesses started in 2020 and 2021. Those records are set to get shattered in 2022, with an estimated 17 million new small businesses starting.
New business opportunities appear all of the time, and it’s never been easier to start a business. You don’t need to invest a lot of money to get started.
What you do need is to follow a series of steps to make your business official and serve customers as soon as possible.
Read this guide and discover a business startup checklist that shows you what you need for entrepreneurial success.
Business Plan
The business plan is your starting point for the business. This is where you learn if you have a good business idea or not.
Figure out how much it costs to start and operate the business. Look at the competitive environment and the marketplace. You can also use this business financial model template to make it easier to make accurate projections. A business plan maps out how your business is different, who your customers are, and why they should buy from you.
The business plan is where you develop a marketing strategy and timeline to get new customers.
The Legal Side of Business Ownership
As a small business owner, you’re going to enter a new world of bureaucracy and procedures. There are legal and financial implications for making mistakes in this area. Hiring an LLC formation attorney could help your business stay compliant with the regulations and avoid costly trouble.
Your best bet is to hire a business attorney who can help you get started. They’ll help you register the business with the right legal structure.
If you have a retail location, you’ll need to learn about permits and safety inspections in your town. An ecommerce company may have sales taxes in several jurisdictions.
Understanding these things before you get started prevents delays and issues before you open your doors.
Adequate Insurance
Starting a business is a financial risk. You put your money on the line with the expectation that you’ll build something of value over time.
You can lose the entire investment in an instant. All it takes is a lawsuit or a natural disaster to wipe everything away.
You can’t control these things, but you can reduce your risk by getting comprehensive insurance coverage.
If you have employees, you’ll need to get workers compensation insurance. Is workers comp taxable? It depends on the laws of your state.
You should consider general liability, errors and omissions, and cyber insurance as well.
The Ability to Adapt
This is one of the most underrated skills for business owners. In these changing times, you need to prepare your business for anything.
A small business owner has to think through many different scenarios and plans to respond to them. For instance, what would you do if a new competitor enters the market with a larger marketing budget? What happens if the economy enters a recession?
These are things that are part of business ownership. You’ll find entrepreneurial success if you have a plan.
Be the Boss With This Business Startup Checklist
Everyone dreams of entrepreneurial success, but not everyone realizes that dream. Business ownership isn’t easy and you’re going to make mistakes.
This business startup checklist showed you the important smart management tips to run your business and reduce your risk.
Do you want more business and financial tips? Check out the Business and Finance section of the blog.
