Startup Checklist
Behind every great company is a great idea. Between a great idea and a great company is a lot of planning. It’s ill-advised to start a company with no planning. Businesses that lack a plan usually burn through their funds and fail.
21.5% of startups fail in the first year.
Plans can help small businesses expect the unexpected.
I want to share a short checklist of things you need to do when starting a small business. There will be 3 main sections, divided by the level of investment you put in.
Time Investment
In the initial planning stages, your biggest investment will be your time.
Determine Viability
Determining viability is the biggest part of starting a business. If there’s no market for the product or service you’re offering, you aren’t going to make any sales and your business will fail. If you aren’t honest with yourself during this phase, you’ll end up putting a lot of time and money into a business that won’t make it past infancy.
Your Takeaway: Make sure there is a market for your particular service/product in your specific target area.
Business Plan
I know it’s basic, but having a business plan can help guide a business through the rocky startup waters. It’ll help you control business spending, determine your scope of service, and give you some values to run your business by. This SBA article goes into detail about business plans, give it a read if you’re having trouble writing one.
Your Takeaway: Find tools and resources online to help you create a business plan. Alternatively, look for free or paid help as it will save you significant time and headaches in the future.
Choose a Name
Let’s be honest, you probably did this step before you determined viability. It’s easy to get excited about a new business idea and start thinking of the cool stuff first. I don’t blame you. Your business name should be memorable and have meaning. If you’re struggling to think of a name, here’s a tool to help you brainstorm.
Become a Business
This one seems obvious, but once you’ve determined viability and written out a business plan, you need to file the proper paperwork with the government to officially become a business.
There are different types of business structure that change your personal liability and how your business will pay taxes. It’s important to know the differences between these structures so you can choose which is best for your business. Here’s an SBA article detailing each business structure.
If you’re ready to register your business, you can use this article to find where to register businesses in your state.
Money Investment
After the initial planning, it’s time to invest some money into your business. Having or receiving the money is often looked at as the difficult part. However I strongly believe HOW that money is spent is far more difficult.
Set Up a Website
Websites give your customers a hub for information. They help improve your brand’s credibility and give people a place to contact you or learn about the company.
Investors
If your business needs additional funds, you need to figure out how you’re handling investments and who is going to invest. Anyone who invests money into a business will want to know how their money is being spent (and how it’s going to be paid back), so having a plan is a great way to impress potential investors. To learn more about different types of business funding, check out this Forbes article.
Brick and Mortar
If your store is a brick and mortar, you’ll need a storefront or an office. It’s important to consider the location of your storefront. If you’re running a coffee shop out of a warehouse that’s far from everything, you won’t get the foot traffic that other coffee shops get.
Open a Business Bank Account
You may think it’s easier to just use your personal bank account for the business, but I promise you that it’s not worth it. If you use your personal account for the business, you may miss out on business-specific tax deductions. Once you start regularly using your personal account for business needs, it becomes a mess to untangle. Dealing with messy taxes is the last thing you want to spend your time on, so do yourself the favor and make a business bank account.
Not having a business bank account can also open you up to more liabilities by piercing the corporate veil. You can learn more about your business’ corporate veil and how to maintain it here.
Finishing Touches
Once you’ve poured money into your business, you’re almost ready to open your doors. Here are some more things you can do to make sure your business is completely ready.
Work On Your Network
A network can be helpful for a ton of reasons. Your network can help you find your next superstar employee or a manufacturer that saves you tons of money.
Make Relationships With Your Suppliers
I always make a point of personally meeting with my suppliers. Having a personal relationship with suppliers can give you a glimpse into industry supply issues, making your time estimates to customers more accurate. They also may be more willing to work on rush jobs or give bulk discounts. Worst case is that you build a good relationship with your supplier and they’re more honest with you.
Marketing
We’re making this section a little broad because it varies between company and industry. Once your doors are open and you’re making a little bit of money, you can start large-scale marketing promotions. Things like running Facebook ads, buying a billboard, and running additional signage.
When starting a small business, you’re likely going to get pulled in 100 different directions at the same time. While this isn’t a 100% checklist, you can use it to help give yourself a sense of direction and set your business on the right course before that happens. If you’re looking for more business advice and tips you can click here. If you’re looking for marketing and branding help you can visit J&R Marketing.
