There’s nothing quite like the feeling of excitement and optimism that comes with starting a business. After all, what can compete with living the American Dream of entrepreneurial success? Thoughts of “making a killing”, independence, working on your own schedule, and eventually growing your business into a local powerhouse start to creep into your mind and the possibilities seem endless!
But before getting too ahead of yourself, there are many steps that need to be taken in order to put your plan into action. That’s not to put a damper on your excitement… In fact, keep romancing! The hard work, long hours, blood, sweat and tears will all be more than worth it once you have finally positioned yourself as a profitable business with an outstanding reputation. In this article, we will aim to cover some of the most important steps that need to be taken, documents that need to be filed and marketing efforts that need to be implemented to ensure that you start this process out on the right foot.
Step 1 : Understanding What Type Of Business You Would Like To Start
You would think that starting a business is as easy as saying “I’m going to start my own business!”, proceeding to buy the supplies, calling a few family friends, and then BAM! You’ve got a business!
Again, not to hinder your optimism, but there’s a bit more thinking that needs to be done before you can begin to take over the world. The first step should be identifying what your niche will be. For this, there are a few questions to ask yourself:
- What are you good at? Sometimes, the best place to start is what you already know. If you’re like me, you thrive in an environment where you feel as though you’re already good at something. For example; if you’re really good at sales and you can sell ice to a polar bear, a call center might be a suitable option. If you love to clean your house, a cleaning service might be the right choice for you.
- What do you have experience in? Work experience, or other areas in which you have found success can play for a major advantage when it comes to starting your own business. Let’s face it; starting a business is already new territory for you. Try and simplify an already complicated process by choosing a field that you’re already fairly capable of navigating.
- What type of operation are you financially capable of funding? Unfortunately, costs are one of the most common limitations for any aspiring business owner. Don’t fret! Loans are available for suitable candidates that qualify for such financial support. If not, your best bet is to start putting in overtime at your 9-5 and padding your savings account -OR- choosing a profession that won’t require you to fork out thousands of dollars to get your feet off the ground. Digital marketing, house cleaning, pool cleaning, lawn care and dog walking are just a few examples of businesses that require low startup costs!
- Will you be providing services locally or nationwide? Consider your target area. Perhaps you’re envisioning a small local business that services your community and surrounding areas. Maybe you’ll be pitching your services to eager buyers all across the country. If you have a physical product that you’re selling, a storefront location that your buyers travel to may even be an option.
- What need do your potential clients/customers have that YOU, specifically, can help with? Do some market research. What is there a need for in your area? Maybe you’re working within a city where there are tons of residential neighborhoods that are frequently shopping landscaping services. If you’re always hearing rumblings or complaints on the lack of child care facilities in your town, a daycare might be the way to go.
Once you have narrowed down your answers to these questions, you should have somewhat of an idea of what it is that you will be offering. This is arguably one of the most important stages of your process, so take your time and carefully examine all of your options. After you have come to a conclusion on your industry, service area and potential audience, it’s time to proceed to the fun part!
Step 2 : Branding Your Business
This can be one of the most exciting aspects of the entire process! Now that you have decided on all of the major details that outline what your business will be, the ideas of what your business will LOOK like are most certainly starting to take shape. At this stage, I can almost guarantee that thoughts of potential names, logo designs and catchy company slogans are keeping you awake at night.
Logically, what you will first need is a name for your company. Living in the year 2021, your first inclination may be to give your business some crazy, off-the-wall name that no one EVER could have come up with. While there’s nothing terribly wrong with that, a thought to consider is that most shoppers do their research online before choosing a suitable vendor. Try and implement the use of “key” search phrases (keywords) within your company name. For example: If you plan to gear your services towards providing local tree services, you’ll want your name to fall somewhere along the lines of Out On a Limb Tree Service LLC. Names such as Out On a Limb LLC may not attract as much exposure online without the use of the service that you are providing in the name. It should be noted that this is just food for thought! There’s nothing wrong with being creative, but always try and ensure that a somewhat clear message is available within your business’ name. Do your due-diligence and research your state’s online database to ensure that your business name is available for filing. We’ll have more on this phase of your operation in Step 4.
Now that you have a name, your next course of action should be getting your idea in front of a suitable logo designer that can effectively bring the face of your company to life! It sounds silly, but a professionally-done logo can make or break a customer’s initial perception of your business. Logos are surprisingly cheap in today’s market, so if you have the money to do so, hire an expert with a portfolio that catches your attention. Try and avoid falling for amateur designers, offering to charge $40 for a logo that they’ll most likely create using a free software or website.
Step 3 : Filing For Your Company Name, EIN, Licensing and Insurance
With any legitimate business, comes the necessary filing for your entity name within your state. If you’ve done the research mentioned in Step 3, your name should be available and ready for filing. Consult with a friend familiar with the process, or use a consultant to ensure that all fields are filled in correctly. Services such as LegalZoom and others are also available to assist the untrained entrepreneur in preparing all of the necessary legal documents that you will need to become official. If filed correctly, the approval/confirmation process can normally take from 1-2 weeks.
For tax purposes, an Emplyer Identification Number (EIN) should be filed-for in a timely fashion. You can do this directly from the IRS website, in as little as 5 minutes. Once again, reach out to consult with an experienced/knowledgeable friend or expert to ensure that you are filling in all of the correct information. If no discrepancies are detected, you should be provided with your EIN number right then and there. Sometime between receiving your EIN and receiving payment from your first customer, travel to the bank where you wish to open your business bank account. Provide them with your EIN, Articles of Organization and valid form of identification. Keep in mind, this 9-digit number is essentially a social security number for your business, so keep this information safe and accessible for your eyes only!
Depending on what type of business you plan to enter into, licensing and insurance may play a massive factor in whether or not you’ll be considered by potential buyers. Most companies that provide a service in or around a resident’s home, operate heavy equipment, have employees, ect. will not be taken seriously without the proper liability coverage or licensing to work within the areas that they’re intending to serve. Once you have checked all of the boxes and gotten your business perfect on paper, you’re ready to proceed with your marketing efforts!
Step 4 : Purchasing Necessary Equipment & Materials
Unless you’re planning to execute your business with nothing more than your own two hands, you’re going to need to start stocking up on supplies. Computers, office equipment, uniforms, business cards and brochures are some of the most commonly purchased materials for any business owner.
Take this time to gather anything and everything essential to starting your business. You’ll want to ensure that you are equipped to provide any service that you plan to advertise. If needed, secure a separate phone line for all business-related communication. If you require a separate vehicle for travel pertaining to your business, shop some reliable used car/truck options in your area.
Monitor all of your expenses and save your receipts. Come tax time, you can confidently write off each expenditure related towards your business on your taxes. Travel, office supplies, work apparel, advertising, monthly rent for commercial space, ect all qualify as a credit towards those dreadful taxes.
Step 5 : Marketing Your Business
Now comes (what some would consider) the most difficult level for any new business owner: Gaining clients and advertising your business. This can prove to be a trying point in the cycle of any new business. The important thing to keep in mind is to keep your head up and not throw in the towel if your inbox isn’t stuffed to the brim with juicy leads within the first 2 weeks. With so many outlets for advertising, the big question is: “Where do I start?”.
Building a website should be Priority 1 for any new business. As an online shopper, ask yourself if you would take more than a few minutes to seriously consider a big purchase from a company that doesn’t have a website to accommodate your research. Keep in mind that your website represents your business. As such, it should reflect the same professionalism and skill that you, as a company, plan to bring to the table. Shy away from the budget-friendly website builder tools. These platforms, while cost effective, will equip you with nothing more than a generic layout, limited features and slow site speed. Don’t cut corners! Do your research and contract a suitable web designer or marketing agency to build you a professional website, guaranteed to yield results and attract attention.
Keeping your online momentum going, your next course of action should be expanding your reach via social media and online review platforms. Take time in setting up your Google My Business lising, Facebook, Instagram, LinkedIn, Nextdoor, Twitter, Yelp, Angie’s List, BBB profiles, as well as any other 3rd party listings that you can possibly dig up online. Submit each field carefully and DON’T RUSH through the creation of these listings. Enter your phone number, address, website URL accordingly. Not only does this open the door for exposure of your business, but you will also gain more credibility in Google’s search engines when linked properly back to your website.
Now by default, your site will automatically appear at the lower end of the totem pole on Google when it is first launched. Don’t panic, as this is normal! Over time, and through continuous effort put into your online presence, your site will gain more credibility in search engines. In the meantime, you’ll want a way to market yourself to gain more immediate business. One of the most popular forms of advertising for today’s consumer is through paid advertising on platforms such as Google, Facebook, YouTube, Instagram, LinkedIn and Nextdoor. Consult with a digital marketing specialist on the creation of an ad campaign that will best suit your niche and what parameters you should target for your audience.
Step 6 : Ask For Reviews & Referrals
By this point, you should have managed to drum up at least a couple of customers for your small business. In the excitement of capturing your first job or selling your first product, one thing that is commonly overlooked is the power of Word Of Mouth advertising. Build a relationship with your clients that you serve. Stay in touch and be communicative throughout the process. Execute your service per their expectations that you’ve provided them with, and when all is said and done you should have a satisfied client!
What most first-time business owners fail to realize is that the job is not over just yet. Asking for a positive review of your business on Google, Facebook, Yelp or other review platforms is an absolute necessity and can carry a lot of weight for other potential shoppers during their own research process. Some clients may be forgetful, so offer incentives, such as $10 dollars off in exchange for a 5 star review, if written before leaving the job site. If you have clients that are recurring, send little reminders requesting their feedback on your work. Stay persistent and build your reviews to the point where it would almost be nonsensical for your prospects to NOT give you a shot.
With happy customers, comes friends and acquaintances of those happy customers. When working with a limited budget starting out, Word Of Mouth advertising can mean everything for a new business owner. Take your time to ensure that each job is perfectly executed and that each client is left happy with your services. What you’ll find is that more business will follow. Local ISO, Neighborhood, Small Business Facebook groups are an often-overlooked free marketing strategy. Join some of these local groups to tag your business or respond to recommendations from those that you’ve previously serviced that may take the time to put your name out there!
In Conclusion :
Take your time and carefully execute each of the aforementioned steps. Rome was not in built in a day, and neither was any successful small business. Live and breath your company! Have some shirts and business cards made. Network and make connections in the area that are relevant to your niche. Seek out accreditation from the BBB or join your local Chamber of Commerce. Marketing your business from a digital perspective can be tricky, so seek out the help of a professional digital marketing service or freelancer to ensure that you’re not wasting any of your valuable startup budget.
Starting your small business can be one of the most rewarding experiences that you will ever take part in. It doesn’t come without it’s share of costs and difficulties, but your future-self will thank you once you can finally say that all of the hard work was worth it.