Whether you dream of clocking out from your nine-to-five job for good or are just looking for ways to supplement your income, starting a small business is a big decision. You’ll need to be ready for a lot of work and follow some rules.
To avoid getting too ahead of yourself, it’s important to have some rudimentary plan in place and line up key steps like registering your business, getting an EIN, etc.
1. Do Your Research
One of the most important tips for starting a small business is to do your research. This means everything from calculating your startup costs to researching local competition, i thought about this.
Another crucial piece of research is conducting a competitive analysis to discover how your product or service will fit into the market. This will help you locate clients for your business and find ways to improve it.
It's also important to remember to show gratitude to your employees, vendors and customers. This goes a long way in building loyalty and customer retention, which will help your business in the long run. As an added bonus, being grateful can also help boost your productivity.
2. Build a Website
A business website is crucial for small businesses to inform customers, boost brand recognition and drive sales. According to a recent survey by Verisign, 84% of small businesses say their websites are important or critical to their success.
Conventional businesses pitch products and services to customers through advertising channels like print, electronic media and word of mouth publicity. However, a website allows you to attract customers online without the geographical constraints of these traditional marketing avenues. Besides showcasing your business and products, a good website will include a contact page that enables customers to get in touch with you directly. This helps establish trust and build a loyal customer base.
3. Get a Business License
Getting a business license is one of the more tedious tasks that must be completed before starting a small business. It can take days to months depending on your industry, jurisdiction and the level of government (local, county or state).
Aside from being required by law, a business license adds credibility and an aura of stability to your company. It also shows potential customers and investors that you’re committed to your business’ success. A legal professional can help you get a license and maintain compliance with regulations. They can also provide guidance on how to best run your company. This could be invaluable to your future success.
4. Hire an Accountant
Ensure you find the right accountant for your business by asking around for recommendations. A good accountant is one of the best investments you can make for your business.
They can help you decide which accounting software is best for your business structure, bookkeeping needs and more. This alone can save you a lot of time and money in the long run.
They can also advise on tax deductions and credits you may not be aware of. This will help you reduce your tax liability and save you a lot of money in the long run. This is especially important when it comes to small businesses.
5. Get a Business Insurance Policy
One of the most important tips for starting a small business is to get a business insurance policy. This will protect your personal assets in case something goes wrong with the business.
Work with an A-rated insurance company that specializes in helping small businesses. They will do a thorough risk audit and assessment to uncover any potential risks that may impact your business operations. They will then recommend the appropriate policies to cover these risks.
The right employees are key to a successful small business. Invest in the right people and treat them well, and they will return the favor by working hard to help your business grow.
6. Get a Credit Card
Getting a business credit card separates personal and business expenses, which is important for tax purposes. It can also help you build your business credit and potentially open up opportunities for small business loans.
Set aside your ego. Be confident as an entrepreneur, but don’t think that you have mastered everything or that people will automatically know that you are an expert.
Show gratitude to everyone you work with, including customers, employees, partners, vendors and service providers. This will go a long way towards gaining their loyalty and helping your business grow. It will also help you establish a reputation for being a good person to work with.
