In 1992, I graduated from the University of Oregon with degrees in journalism and economics, hoping to write articles for business magazines. However, soon after, I realized that I wouldn’t be able to move out of my parents’ house for quite some time because magazine writing paid so little, I decided to do something different. I wanted to stay involved with business, so I applied to work in the sales and marketing department for a local software company. I spent the next 7 years working there, doing lots of fun stuff: writing, graphic design, and some work on their website. After my youngest daughter started school, I began working for an employment recruiting company where I did similar marketing work, which included some work on the company’s website. It was a great run, but in 2019, I decided it was time to trade the 9-to-5 for my own thing. So, I started a website design business, and since then, I’ve helped many small businesses step up their digital game by building or refreshing their websites.
When I first started my business, I was basically winging it. Should I work on branding first? Set up an LLC? Print business cards? (Spoiler: nobody asked for those.) I really could’ve used a handy checklist to keep me on track. So, if you’re thinking about starting your own business or you’ve just dived in and are treading water, here’s a list of 12 steps to make things a little easier.
Starting a small business is like jumping into the deep end of a pool—it’s exciting but also a bit terrifying. The idea of being your own boss and pursuing something you’re passionate about is amazing, but the “What do I do first?” panic is real. Whether you’re launching a product, offering a service, or opening a physical shop, there are some foundational steps to help bring your vision to life. This guide breaks it all down into 12 manageable steps—from brainstorming your idea to making your big launch.
1. Choose Your Business Idea
Start with what you’re passionate about or knowledgeable in, but also ensure it’s something people want. Look for problems you can solve or unique perspectives you bring to the market. For those unsure of their direction, consider evaluating emerging industry trends, popular niches, or local demands that align with your interests.
2. Conduct Market Research
Validate your idea by researching your target market, competitors, and industry. Look for gaps in the market that your business can fill. Use surveys, interviews, or tools like Google Trends and industry reports to gauge interest and demand. Understanding your customers’ challenges and frustrations will help you tailor your offerings effectively.
3. Write a Business Plan
A business plan serves as your roadmap, detailing your business model, target audience, goals, and financial projections. Include sections on your unique value proposition, revenue streams, marketing strategy, and initial funding needs. A solid business plan not only clarifies your vision but also becomes essential when seeking investors or loans.
4. Build Your Team
Depending on your business, you might need a team to support you from the start, or you may decide to handle it solo initially. Consider roles essential to your business’s growth, such as marketing, sales, or product development. Early on, you may rely on contractors or freelancers, which gives you flexibility without long-term commitments.
5. Secure Funding for Your Business
Evaluate how much startup capital you’ll need and explore funding options. Options include personal savings, small business loans, venture capital, crowdfunding, or investors. Prepare a budget with realistic projections and ensure you have enough capital for initial expenses and a buffer for unexpected costs.
6. Choose Your Business Structure
The business structure affects your liability, taxes, and regulatory requirements. Common structures include sole proprietorship, partnership, LLC, or corporation. Each has different implications for taxes and personal liability, so consider consulting with a legal or tax professional to choose the one that best suits your needs.
7. Register Your Business
Choose a memorable name that represents your brand and isn’t already in use. Registering your business name with your local and state authorities is usually required. Also, if you operate online, check for domain availability to secure your digital presence.
8. Apply for Licenses and Permits
Research the licenses and permits required for your business to legally operate. Requirements vary by industry and location. For example, food-related businesses need health permits, while contractors may need specific trade licenses. Compliance with regulations helps avoid fines and protects your business reputation.
9. Open a Business Bank Account
A separate business bank account helps you manage your finances, making it easier to track income, expenses, and profits. This separation also simplifies tax filing and protects your personal assets. Compare banking options to find an account with low fees, perks for small businesses, or credit card options for business expenses.
10. Get Business Insurance
Business insurance protects your assets and minimizes risk. Common options include general liability insurance, property insurance, and professional liability insurance. Consider what coverage is essential for your industry and seek advice from an insurance agent to tailor a policy to your needs.
11. Build a Great Product or Service
Focus on creating a quality product or service that meets the needs of your target market. Collect feedback from initial users to make improvements. A strong product or service is the foundation of any successful business, as it drives customer satisfaction, referrals, and repeat business.
12. Launch Your Business
With everything in place, it’s time to launch! Develop a marketing plan to announce your business through social media, local events, and online platforms. Monitor customer reactions and feedback, and be prepared to adjust your approach as needed. A successful launch sets the stage for long-term growth, so invest time in making a memorable first impression.
Launching a small business requires careful planning, persistence, and adaptability. By following these 12 steps, from refining your business idea to securing funding and creating a strong product or service—you can lay a solid foundation for growth and success. Following this roadmap helps minimize risks and can give you the best chance at achieving your entrepreneurial dreams. Remember, take it one step at a time, stay focused on your goals, and let your passion be the thing that keeps the engine running. You’re on your way!
