FIRST STEPS

 

Create a business plan

Creating a professional business plan with 3-5 year financial projections, marketing and operating plans, etc., forces you to think through the details you’ll need to be successful. Note: It’s important to keep your plan updated so you can review where you are, make necessary changes, and adapt regularly.

 

Figure Out the Money

The high majority of startups take much more time to get off the ground than expected. Be sure to know your personal and projected business expenses for a minimum of 1 year (two is better). If you need outside financing for the business, create a list of potential qualified investors and start investigating as soon as possible.

 

Family

If you have family that depends on you for support, it’s important that they “buy into” your startup idea. It’s difficult enough to start a new business and having your family behind you goes a very long way.

 

Refine Your Sales Pitch

You need a good elevator pitch for many reasons: potential investors, new customers, new hires, banking relations and more. If you can’t pitch your business clearly, how can you expect key stakeholders to buy in?

 

FORMALIZE YOUR BUSINESS

 

Choose a Business Name

Find a name that is easy to remember and isn’t already in use by a competing company. Do Google searches and use a corporate name search tool to see if the name you have in mind is unique or already exists. Check at the state and Federal level too.

 

Apply for Patent and Trademark Protection

Patents and trademarks are important for two primary reasons: they prevent others in your business category from copying your product or using your name (or something very similar). Given your level of success, patents and trademarks can become very valuable assets.  

 

Register a Domain Name

If possible, match your domain name to your business name. If not, use words or phrases like shop@domainname or domainnameusa, etc. Using a generic email address or a website with free hosting and a name like mysite.wordpress.com makes it seem like either (a) you are not running a real business or (b) you don’t plan to be around long.

 

Apply for your Federal Employer Identification Number (EIN)

An EIN allows you to separate yourself from your business. You’ll also need it if you plan to incorporate your business or open a business bank account. EIN numbers are free; apply online at: https://irs-ein-tax.com.

 

Incorporate (create a formal legal structure)

Incorporating your startup can protect your personal assets. Speak with your attorney and accountant to determine what business structure is best for you (i.e., corporation, LLC, sole proprietorship, partnership, etc.).  

 

Investigate and Apply for Any Required Business Licenses

You may need one, if not several, business licenses for your startup, depending on your industry and where you are located.  Most licenses are at the state or local level.

 

Set Up a Website

Get your website built as soon as possible. A clean, easy-to-follow website is imperative in today’s business climate. Even if your product or service is not quite ready to go, you can start with an introduction to your future product or service, company information, etc. Lastly, register singular and plural versions of your name (people often make mistakes when typing a website address). For instance, if your company name is Kool T-Shirt Co register www.KoolT-Shirt.com and www.KoolT-Shirts.com.

 

Set Up Your Email Addresses

Using a generic email address (i.e., gmail, google, aol, etc.) makes it seem like (a) you are not running a real business or (b) you don’t plan to be around very long. Tie your email address to your website (i.e., johnsmith@mywebsitename.com) and be sure to establish additional accounts like help@..., info@..., sales@..., etc., for future needs.

 

Register Social Media Profiles

Depending on your product or service, getting set up on the major social media channels (i.e., Facebook, LinkedIn, Twitter, etc.) will go a long way to help market your business. Also, it’s important to reserve your brand as a profile name. Try Knowem.com to reserve the names.

 

Open Your Business Checking Account

It’s easy to use your personal bank account to pay for your initial business expenses, but it’s a bad idea. Figuring out legitimate expenses at tax time can become complicated at best, as well as cost a lot of money for your accountant to figure out.

 

Consult Your Insurance Agent

Depending on the type of business you’re starting, you may need insurance of one kind or another (i.e., liability, workers’ comp, health insurance, etc.), especially if you are hiring employees.

 

ESTABLISH AN IDENTITY

 

Order Your Business Cards

As a startup founder, you’ll be doing a lot of networking, so order plenty of business cards. They are inexpensive enough that you can reorder them later if things change. Without cards you lack credibility.

 

Retail or Office Space

If you’ve got a brick-and-mortar business, you’ll need to sort this out early. If you plan to run a retail business, pay attention to foot traffic, accessibility and other factors that will affect the number of people that can walk into your store. Pay particular attention to your signage. It should be easy to read and clearly identify what you do. If you don’t have a brick and mortar business, hold-off on renting an office as long as possible to avoid saddling your startup with lease payments, insurance and other related expenses.

 

GET IN BUSINESS

 

Set Up Your Accounting System

Once you have opened your bank account, choose an accounting program. Few things will harm your business faster than books and financial statements that are poorly organized or managed.

 

Secure an IT Provider

If you are running a tech company or not, you will likely have sensitive data on computers and devices that you need to protect and back up. IT problems can cripple a young company, and it is imperative to select a dependable solution’s provider as early on as possible.

 

Assign Responsibilities to Partners and Co-Founders

If you have one or more founders or partners, it is imperative that you decide who will do what long before you open the doors. Have your attorney draft and operating agreement and be sure to have all of the relative parties sign it. Co-founder disagreements often destroy a business.

 

Legal Documents

Have your attorney draft any necessary agreements the business will need. Verbal agreements rarely work and can be catastrophic for a young company. Like they say…Get it in writing.

 

Line Up Suppliers and Service Providers

Identifying suppliers and service providers as early as possible can give you numerous advantages when getting things off the ground. Good, reliable sources that keep things in motion are critical to building a young business.  

 

Initiate Your Marketing Plan

Start generating revenue as soon as possible. During the early stages of a startup, rarely if ever is there enough money. You must resist the temptation to wait until things are “perfect” to start generating income.

 

MISCELLANEOUS SUGGESTIONS

 

Identify Business Apps That Provide An Edge

Today’s phone apps can provide a wide variety of strategic benefits for running your business. If you accept payments, you should subscribe to a credit card device that allows you to accept mobile payments.

 

Take Advantage of Free Business Resources

Your local SBA office, SCORE, and other small business resources can provide you with free advice, access to business templates, and other valuable tools.

 

Hiring Staff

Depending on the type of business you have, you may need staff from day one. If possible, and as long as it doesn’t hurt your progress, you may want to save some money by outsourcing work to freelancers, interns and third-party vendors. Just remember, cheaper isn’t always better and trying to do everything yourself takes you away from growing the business.

 

Network

Reach out to former co-workers and colleagues, as well as friends and family, for introductions that can help grow your business. Make sure you don’t pressure them or be unreasonable with expectations; most will help if they can.   

 

Partnerships

Establish your brand before seeking out significant partnerships. In most cases, a business won’t be attractive to potential partners unless it’s making a name for itself. Initially, focus your time to make sales and get customers. Partnerships will develop from there.

 

Refine Your Product, Marketing & Sales Approach

As you work your business plan you will learn more about your product or service, and the marketplace. Take things in and use market feedback to refine your marketing efforts.

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Build Your Sales Team

In most startup situations, the business owner starts out as the primary sales person. Initially, this is fine. But to grow your business you will likely need a dedicated sales team.

 

Find a Mentor

A mentor who has succeeded in your industry can provide priceless advice and serve as a powerful sounding board. In the end, we need to work on the business, not in it, to make it grow and flourish.