How to Start a Small Business from Scratch
Starting a business can feel overwhelming and even a little daunting—but are you ready to take the leap and start out on your own? In today’s world, more and more people are seeking the freedom to take control of their finances and create their own paths to success. While building a business does require time, effort, and patience, it’s far from impossible. With the right guidance and clear, actionable steps, you’ll know exactly what to focus on next and can turn your dream into a reality. Let’s break it down and make it happen!
Step 1: Decide on a Business Structure
Choosing the right business structure is essential for protecting your assets, managing taxes, and setting your business up for success. Here are the most common options:
- LLC (Limited Liability Company): Offers personal liability protection and tax flexibility. Ideal for small businesses that want legal protection without the complexity of a corporation. Examples include freelance designers, boutique retail stores, and small consulting firms.
- Sole Proprietorship: The simplest structure but offers no liability protection. A good starting point for solopreneurs such as independent contractors, tutors, or small-scale artisans.
- Partnership: Suitable for businesses with multiple owners. Divides responsibilities and profits. Common examples are law firms, real estate agencies, or small creative agencies.
- Corporation: Ideal for larger businesses; offers strong legal protections but involves more complexity and regulations. This is typical for tech startups, manufacturing companies, or any business looking to raise significant capital through investors.
Not sure which is right for you? Visit Nolo or your state’s Secretary of State website for detailed comparisons.
Step 2: Check Name Availability
Your business name should be unique, memorable, and aligned with your brand. Here’s how to ensure it’s available:
- Search online: Do a quick Google search to see if anyone is already using your desired name.
- Check your state’s business registry: Most states have an online tool to verify name availability. For example, in Georgia, you can search for business names using the Georgia Secretary of State’s business search tool.
- Search for domain availability: Use tools like Namecheap or GoDaddy to find and purchase your domain.
- Trademark check: Use the Trademark Electronic Search System (TESS) for a thorough trademark search. For a more user-friendly option, try services like Trademarkia that simplify the process. If you’re ready to register, platforms like LegalZoom can assist with obtaining a trademark efficiently.
Step 3: Conduct Simple Market Research
Understanding your market and competition can give you a major edge. Here’s how to do it:
- Research competitors: Use Google, Yelp, or social media to identify similar businesses in your area.
- Identify gaps: Look for services or products competitors don’t offer.
- Customer preferences: Read reviews on platforms like Yelp or Google to learn what customers love or want improved.
- Stand out: Define your unique selling point (USP).
For tips on market research, check out GoDaddy’s Small Business Guide to DIY Market Research.
Step 4: Obtain Necessary Licenses and Permits
Make sure you comply with local, state, and federal regulations. Common requirements include:
- A business license from your city or county.
- Industry-specific permits (e.g., food handling, health permits).
- State-level registrations for your business type.
Visit the Small Business Administration (SBA) for a comprehensive guide to licenses and permits.
Step 5: Obtain Liability Insurance
Protecting your business with insurance is crucial. Here’s why it’s essential:
- Why It’s Essential:
- Protects against lawsuits or claims related to your products or services.
- Provides peace of mind knowing your business is covered in case of unexpected incidents.
- Types of Insurance to Consider:
- General Liability Insurance: Covers property damage or injuries on your premises.
- Professional Liability Insurance: Protects against claims related to your specific services.
Research industry-specific insurance providers and compare quotes from trusted companies like Hiscox or The Hartford.
Step 6: Set Up Your Financials
Separate your business and personal finances by taking these steps:
- Open a business bank account. Compare options at NerdWallet.
- Choose a payment processor like Square, Stripe, or PayPal to accept payments.
- Use accounting software such as QuickBooks or Wave to manage finances.
Check for Small Business Loans or Grants
Check if your business qualifies for a small business loan or grant. Many government programs and private organizations offer financial assistance to small businesses, particularly for underrepresented groups. For example:
- Women-Owned Businesses: Explore grants and loans specifically for women entrepreneurs through organizations like Amber Grant or SBA Women’s Business Centers.
- Minority-Owned Businesses: Look into programs like MBDA Grants or Grants.gov for funding opportunities.
- Veteran-Owned Businesses: The Office of Veterans Business Development offers resources and financial programs for veteran entrepreneurs.
Step 7: Secure a Physical or Virtual Location
Finding the right location for your business is essential for success. Here’s how to decide:
Physical Location:
- Look for accessible and visible spaces that align with your target market.
- Ensure the lease terms are favorable and the location meets zoning and regulatory standards. To learn about your local zoning requirements, contact your city or county planning department or visit their official website. For example, in the U.S., you can explore Small Business Administration for general guidance.
- Set up the space to reflect your brand and meet customer expectations.
- If your business involves in-person transactions, use point-of-sale systems like Square to streamline payments, inventory management, and customer data collection. Square’s versatility makes it ideal for retail stores, salons, wellness centers and small cafes.
Virtual Business:
- If your business operates online, invest in tools and systems for seamless virtual operations. Examples include:
- E-Commerce Platforms: Use Shopify or WooCommerce to sell products online.
- Payment Gateways: Utilize Stripe, Square or PayPal for secure transactions.
- Virtual Meeting Tools: Platforms like Zoom, Microsoft Teams, or Google Meet are ideal for client interactions.
- Project Management Tools: Use Asana, Trello, or ClickUp to organize tasks and workflows efficiently.
- Cloud Storage: Leverage Google Drive or Dropbox for file sharing and collaboration.
- Marketing Automation: Engage customers effectively with tools like MailChimp or ConvertKit.
- Use a professional address service for correspondence, if needed, to maintain a professional image. Examples include services like The UPS Store, which offers mailbox rentals with a professional address, or coworking spaces such as Regus or Industrious, which often provide virtual office packages for remote businesses.
Step 8: Build Your Brand
A brand is more than just a logo—it’s the identity of your business and the way customers perceive you. The word “brand” originates from the Old Norse word “brandr,” meaning to burn, as livestock owners would burn their unique symbol onto their animals to signify ownership. It applies to business because you want to burn your brand into your customers’ minds, making it unforgettable. Over time, branding evolved into a way to represent a business’s identity and values.
Building a brand starts with understanding your story and how it solves a customer’s problem—a concept popularized by Donald Miller’s Building a StoryBrand framework. Your customer is the hero, and your business acts as the guide providing the solution.
Your brand sets the tone for your business and attracts the right customers. Focus on:
- Mission Statement: Clearly define your purpose and vision, articulating how your business solves problems for your customers and improves their lives. Tie it back to your unique value proposition to reinforce your brand’s promise.
- Business logo: First, ask yourself the question “Does my business really need a logo?” Oftentimes text is just fine and you can take your time and be thoughtful about your logo. When you’re ready, hire a graphic designer or look into tools like Canva, 99designs or DesignCrowd to source professional and creative logo ideas tailored to your brand.
Step 9: Develop a Professional Website
Your website is the most important marketing tool you have. It’s your business’s welcome mat. It’s not just a place to showcase your services or products; it’s where your customers form their first impression. And that impression happens fast—studies show you often have just 5 to 7 seconds to grab your audience’s attention. This makes it crucial to prioritize clear, compelling content that highlights your value and addresses your customers’ needs. Avoid overwhelming your visitors with overly complex designs or unnecessary features that detract from the user experience. Instead, aim for a clean, intuitive layout that guides them seamlessly toward taking action.
While platforms like Wix, Weebly, and Squarespace may seem like quick solutions, hiring a professional designer is a smarter investment in the long run. A designer acts as a partner in your growth, ensuring your website evolves with your business while maintaining an optimized and professional look.
Key Website Elements: Your website should include critical elements that enhance functionality and user experience:
- Clear Messaging: Ensure that your website communicates your value proposition in a concise and compelling way. Visitors should immediately understand who you are, what you offer, and how to take action.
- Predictable Architecture: Structure your website in a logical and intuitive way, with easy-to-navigate menus and a clear path for users to find the information they need.
- Clear Call-to-Actions (CTAs): Guide visitors to take specific actions, such as “Book Now,” “Learn More,” or “Contact Us.”
- Fast Loading Speed: Optimize images and hosting to provide a seamless experience. Resize images before uploading them to your website to prevent slow load times. Avoid uploading videos directly to your site; instead, host them on platforms like YouTube or Vimeo and embed the links. Remember, the more fancy features your site has, the heavier it becomes, which can negatively affect speed and user experience.
- Mobile Responsiveness: With so many different devices and device sizes, it’s important that your website designer knows how to accommodate the design so your site displays seamlessly on any device.
- Contact Information: Prominently display your contact details or a contact form on every page.
- Social Proof: Include testimonials, reviews, or case studies to build trust with your audience. Encourage customers to leave Google Reviews, which not only enhance your credibility but can also be displayed directly on your website to showcase positive feedback.
- Analytics Integration: Set up tools like Google Analytics to track user behavior and website performance. This allows you to identify trends, understand how visitors interact with your site, and make data-driven decisions to improve user experience and engagement.
Invest in SEO: Investing in SEO (Search Engine Optimization) ensures your website ranks well in search engines, making it easier for potential customers to find you. Without good SEO, even the most beautifully designed website may go unnoticed. It is important to find a reputable and ethical SEO Specialist. Many clients come to us after they have been burned by a previous SEO Agency. Here’s what to focus on:
- Keyword Research: Use tools like Google Keyword Planner or SEMrush to identify terms your audience is searching for.
- On-Page Optimization: Ensure each page has unique title tags, meta descriptions, and relevant keywords integrated naturally into the content.
- Local SEO: For small businesses, optimize for local searches by claiming your Google Business Profile and including your location in key content.
- Content Marketing: Regularly update your blog with high-quality, keyword-rich articles to drive traffic.
- Backlinks: Build authority by having other reputable websites link to your site. Reach out to partners, local directories, or bloggers in your industry for opportunities.
Don’t Skimp on Hosting and Maintenance! If your website is built on WordPress, having a solid hosting and maintenance team is essential. WordPress websites require ongoing updates to themes, plugins, and security features. This is not something you should try to DIY unless you have the technical expertise. Read more about the importance of WordPress Maintenance.
- Why It Matters:
- Ensures your website stays secure, fast, and functional.
- Identifies and resolves plugin conflicts to ensure the site doesn’t break during updates or maintenance.
- Prevents downtime that could impact your business operations.
- Provides regular backups in case of emergencies.
- Recommended Services: Your maintenance team will likely already have a hosting service they use like Kinsta, SiteGround, or Flywheel that offer WordPress-specific support. These providers are optimized for WordPress, offering features like daily backups, staging environments, and robust security. If you’re doing it yourself, using a trusted provider like one of these ensures your website runs smoothly and efficiently.
Step 10: Set Up Social Media Profiles
Social media is a powerful tool for reaching and engaging with your audience. Here’s how to get started:
- Choose Platforms Wisely Based on Your Business:
- Instagram: Great for visual businesses such as fashion, food, travel, and wellness brands that rely on high-quality images and videos to tell their story.
- Facebook: Ideal for local businesses like restaurants, retail stores, or service providers looking to engage with their community and share updates, events, or promotions.
- LinkedIn: Best for B2B companies, consultants, and professional services such as recruiters, financial advisors, and marketers aiming to build thought leadership and network with other professionals.
- TikTok: Perfect for younger audiences and creative content. Best suited for businesses in industries like fashion, beauty, lifestyle, or entertainment that can create engaging, short-form video content.
- Optimize Your Profiles: Use professional photos, include clear descriptions, and link to your website. Tools like Canva can be incredibly helpful for designing stunning profile elements and creating quick, visually appealing posts to keep your audience engaged.
- Post Consistently: Use tools like Hootsuite or Buffer to schedule regular updates and maintain an active presence on your social media platforms.
- Engage With Your Audience: Respond to comments, messages, and reviews promptly.
Step 11: Implement Operational Tools for Efficiency
Running your business smoothly requires the right tools. Here are some essential options:
- CRM and Business Management Tools: Use platforms like Dubsado or HoneyBook to streamline customer interactions, manage projects, and automate workflows. Dubsado is especially great for service-based businesses such as doulas, photographers, wedding planners, and other professionals who need to manage client onboarding, contracts, and scheduling seamlessly.
- Email Marketing Tools: Build and nurture your email list with tools like MailChimp, Constant Contact, or MailerLite.
- Accounting Software: Use tools like QuickBooks or Wave to manage finances and generate invoices efficiently.
- Appointment Scheduling: If you have a business that requires appointments, use a tool like Acuity for your scheduling software.
Step 12: Build Awareness Pre-Launch
Start generating buzz for your business before your official launch:
- Start Blogging: Write helpful articles on your website that address customer pain points. Use AI tools such as ChatGPT or Jasper to help you brainstorm ideas and generate outlines, making the process faster and more efficient.
- Guest Blog or Write Articles: Establish yourself as an expert by contributing to other blogs or publications. For a step-by-step guide to getting started with guest blogging, check out Ahrefs’ Guide to Guest Blogging, which provides actionable tips and strategies for success.
- Engage on Social Media: Share teasers about your business, post consistently, and engage with potential customers.
- Podcasting: Be a guest on relevant podcasts or start your own to share your expertise. To get started, research podcasts in your industry using platforms like Apple Podcasts or Spotify. Reach out to hosts with a concise pitch highlighting your expertise and how you can add value to their audience. If creating your own podcast, tools like Anchor or Buzzsprout make the process easy and accessible.
- Networking: Attend events and join online communities in your industry to build connections. Popular online networking platforms include Meetup for local gatherings and niche-specific groups, LinkedIn Groups for professional discussions, and Eventbrite for finding industry-related webinars and events.
Step 13: Launch Your Business
When it’s time to launch, make a strong impression:
- Test Your Systems: Ensure your website, payment processing, and scheduling tools work seamlessly. Verify that every link, form, and email automation functions properly to avoid any disruptions during the launch.
- Announce Your Launch: Use email campaigns, social media, and local events to spread the word. Create a buzz by sharing your “why” story and showcasing how your business solves your customers’ problems. Platforms like MailChimp can help you manage targeted email campaigns effectively.
- Host a Launch Event: Whether virtual or in-person, consider hosting a launch event to engage with your audience directly. Use platforms like Eventbrite to organize and promote the event.
- Offer Promotions: Attract first-time customers with discounts, special bundles, or referral incentives. Promote these offers across your website and social media platforms.
- Leverage Media and Press: Reach out to local news outlets, blogs, and influencers in your industry to gain visibility. Services like HARO can connect you with journalists looking for stories in your niche.
Step 14: Post-Launch: Track and Adjust
Once your business is live, focus on improvement:
- Monitor Metrics: Use tools like Google Analytics to track website traffic and conversions.
- Collect Feedback: Listen to customers to identify areas for improvement.
- Refine Your Strategies: Adjust your marketing, operations, and services based on performance data.
Starting a business may seem challenging, but with these steps, you’re equipped to take action and build something incredible. Contact Simplified Website Design to get started on your small business website and SEO today and get your new business noticed!
Remember, it’s all about taking it one step at a time. You’ve got this!