Starting your own business is not for the faint at heart. It is important to plan but be prepared

for the inevitable problems that will arise. The more you plan, the better your chance of

success. These five steps simplify some of the tasks that are necessary to be successful. These

are items to consider but please know that they are not easy. Some items take time, research,

money, and outsourced expert advice.

1. Know your why

If you are thinking of starting a business, you already have an idea of what you want to sell or

what service you want to provide. Do some research for existing companies that already do

what you want to do or what you want to sell. Learn what your competition is doing and figure

out how you can do it better. It may be that you can provide better service, or it could be that

you can sell something cheaper and deliver it faster. Whatever “it” is, do your research and

find out what will separate you from the competition.

Know “why” you are wanting to start a business. Do you see a need? Or do you just want to be

your own boss and think that you can do “it” better? There are many reasons people decide to

start a business. Make sure you have a clear purpose and a vision for your business.

Consider a business name. Brainstorm some ideas that link to your vision and purpose. Make

sure that all business decisions, including the name, relate back to your “why”. It may also help

to consider who your target market is. The language you use to represent your product or

service should relate back to your “why” and “who”.

2. Make a business plan and assess your finances.

Once you have your idea, your purpose, and your name, do some market research. Are you

selling a product online or are you providing a service locally? Have you researched

competitors and looked at the demographics of your area? Do some research to understand

your target market. Look at their needs and behaviors. The best way to succeed is to offer

something different than the competition. Make sure you have this down because starting

your business too early before you develop your plan can be catastrophic. You do not want to

underdeliver when you start out.

A good business plan will help you determine how much money you need to start your

business. You may have to get a loan or work your regular job while you slowly start your

business. Always overestimate what you think you will need to fund your business venture. It

may take several months to years before you see a profit and it is always better to plan for the

unexpected.

You need to know what you need to make to cover all your expenses. Pricing your product or

service is tricky. That is why it is so important to know your target market and to know your

competition. What do you think your target market is willing to pay and what is the

competition charging?

What are your fixed and variable rates to run your business? Pay attention to your expenses!!!

It is so easy to get wrapped up in things that are unnecessary. Do you really need a rented

office space, or can you work from home? Do you need that expensive computer and printer,

or will the cheaper ones work for now?

3. Determine your legal structure.

a. Sole Proprietorship – You are the person responsible for all the decisions,

debt and obligations.

b. Partnership – Two or more people are responsible for the decisions, debt and

obligations

c. Corporation – There are several different types of corporations (S

Corporation, C Corporation, and B Corporation). Each type of corporation is

subject to different guidelines. But this is the best option if you want to

separate your personal liability from your company’s liability.

d. Limited Liability Company – This is the most common business structure for

small businesses. It gives you some legal protections but has less restrictions

than corporations.

There are many pros and cons for each business structure. ALWAYS seek advice from an

accountant.

4. Register your business with federal, state and local governments

a. Corporations need “articles of incorporation” – This document describes

your busines purpose, corporate structure, and stock details

b. Some LLCs will need an operating agreement

c. EIN – You can apply for your Employer Identification Number from the IRS.

This is not required for sole proprietors that do not have any employees.

BEFORE you apply for an EIN, register your business name with the state and

make sure that the name you choose is available.

d. Payroll – If you are planning to have employees, you will also need to register

for your state, federal, and local withholding numbers

e. Sales Tax- If you are selling a product or service that is taxable, you will need

to register with the state/county for your vendor’s license. If you sell in more

than one state, you may need to register with every state to which you sell.

5. Find a bank that is business friendly. I have found that most local banks tend to

work with small businesses better than their larger competitors. Find a bank that

does not charge for checking accounts and is interested in you and your business.

During the pandemic, we found the clients who had a relationship with their bank,

were able to get funding to get them through the financial struggle.

6. Get Insurance. You may need several types of insurance. If you rent office space,

you will need renters’ insurance. Likewise, you will need insurance on any property

(buildings and equipment). You will also need liability insurance. Depending on

your product or service, you may want to also invest in cyber security insurance.

7. Brand yourself and advertise

a. Company Website – Your company’s website will let customers know who

you are and why you exist. Most people will use the internet to learn more

about a business.

b. Social Media – After you have narrowed down your target audience, you will

market to them using different platforms on social media. The platforms you

use depends on your target audience

c. Logo – Create a company logo that reflects your brand, purpose and vison

There are so many things to consider before you start your own business. These items are just

a snapshot, and you need to dig deeper and get expert advice where necessary. The

entrepreneurs that we see get in over their heads are the ones that try to do it all and do not

invest in expert advice that will save them so much money and heartache in the long run. Do

not try to do your own accounting or practice law. Employee manuals, business contracts and

taxes are not to be taken lightly.

Karrie Jackson

Co-Founder

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