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You want to start a business…congratulations! It’s an adventure that’s fulfilling, challenging and exciting all at once. You probably feel unsure about where to start or where to go to launch your small business, but don’t worry, you’ve come to the right place. We’ve compiled a business startup checklist of essential “to-dos” when setting up a new business. It’s the ultimate guide for everything you need to know to make your business idea a reality. We’ll go through all the prerequisites, legalities, logistics and support elements you need to start a business — broken down into 22 easy-to-follow steps.
Key takeaways:
- Before you launch your small business, you’ll need to develop your idea, test its plausibility, identify your target market, select a business name, create a logo, write a business plan and establish a budget.
- In order to follow local regulations, make sure your business is compliant and avoid any future delays or legal problems, it’s important to register your small business, secure permits and licenses, set up the accounts and protect your business with insurance.
- Once you’ve launched, make your business a reality and get the word out there by building a website, setting up a business email account, ordering marketing materials and networking.
- To keep small business owners motivated through challenges, it’s important to establish a support system. Ask your network for help, take advantage of free resources and find a mentor you can turn to for guidance and advice.
Start a business checklist:
1. Develop your business idea
2. Test the plausibility
3. Identify your target market
4. Choose a business name
5. Create a logo
6. Determine the costs
7. Write a business plan
8. Establish a budget
9. Register your business name
10. Secure permits and licenses
11. Set up the books
12. Protect your business with insurance
13. Build a website
14. Set up a business email account
15. Order marketing materials
16. Network
17. Open your doors for business
18. Provide outstanding customer service
19. Find a business mentor
20. Take advantage of free resources
21. Turn to your network for support
22. Remind yourself why you’re doing this
Before you do anything, there are a few prerequisites to starting a business. Following the first eight steps on this new business checklist will help you effectively and efficiently launch your business.
1. Develop your business idea
In the small business world, an idea is everything. You’re probably starting a business because you had a need that wasn’t fulfilled in the marketplace, or you saw an opportunity to do something better than the competition. Or, maybe you just had a strike of inspiration! Wherever it came from, make this idea concrete and put pen to paper.
2. Test the plausibility
We all know ideas are great, but they need to be tested. Ask your friends and family for feedback, or meet with a business consultant to check that the model is feasible. Consider if your small business idea is sustainable, how many competitors you’ll have in the market and if you have the right tools, talent and skills to bring the idea to life.
3. Identify your target market
Create buyer personas that embody specific demographic information, preferences and buying styles to find your brand’s target audience. When starting a small business, having a market focus is best for longevity. You’ll focus your messaging and brand communications around this target customer, so it’s important to create a complete profile.
4. Choose a business name
Once you come up with an idea, you’ll likely have a working business name in mind. A good business name should be memorable and embody your brand personality. It will be used on all important documentation as well as in presentations to investors. Consider what makes your business stand out from the competition and how you can leverage that in a clever, but straightforward way.
Read our guide on how to choose a business name and then use this handy trademark electronic search tool to make sure the name isn’t already taken.
5. Create a logo
A logo is essential for any business — it’s a visual representation of your brand identity and values, and it will go on all of your marketing materials for years to come. Ultimately, the goal is for customers to recognize your business as soon as they see your logo! If you need help designing a logo, start a custom logo design contest on 99designs by Vista, and work with design professionals to build your brand.
6. Determine the costs
Figure out what it’s going to cost to get your business out into the world. Itemize everything so you’re not surprised by fees down the road — talk to an expert if you’re unsure about specifics. Do you need funding? Retail space? Specialized equipment? Additional employees? Branding help? Marketing budget? The list goes on. Get a handle on your expenses for the first year, at least, so you can prioritize costs and decisions once your business is in motion.
7. Write a business plan
The previous steps have laid the groundwork for your business plan — this is where you formalize your idea and outline the strategies and tactics you’re going to use to launch your business. In your document, include everything from your business concept to your technological needs and your workspace set-up. Be as detailed as possible. Ideally, the scope will include detailed information for years one, three and five so you can outline projected growth and long-term objectives. Create a business plan that is actionable and useful, and you’ll thank yourself down the line.
Learn how to write a small business marketing plan in our step-by-step guide.
8. Establish a budget
A budget is a natural outcome of a business plan, so this step should be near completion once your plan is finalized. Review your budget and ensure all the nitty gritty details are accounted for — and that you have the budget broken down into six-, twelve- and 24-month timelines. Planning for two years in advance helps you (and the business) stay focused. Your budget should outline where the big spends are being allocated (maybe studio space rent) and identify opportunities where you can be more creative with funding…whether looking for free resources or partnering with another small business.
With your business idea well thought out and on paper, it’s time to consider local regulations. Take care of the following four steps on the small business checklist to avoid any legal delays or future snags.
9. Register your business name
Protect your business name by registering it through a county clerk’s office or state government. This allows you to claim you are “Doing Business As” your chosen business name. It is the required step to officially operate a business as a sole proprietor, an existing corporation or an LLC.
Just getting started? Here’s everything you need to know about how to register a small business.
10. Secure permits and licenses
Permits and licensing for small business operations vary by location — it’s important to make sure that before you open your doors for business, you’re operating lawfully according to the specific requirements of your state or local region.
11. Set up the books
It’s time to get your business finances in order. Open a bank account specifically for your business, keep track of your spending and establish a list of vendors and clients. If you’re an accounting novice, it’s a good idea to meet with an accountant to make sure you’re covering all your bases and don’t leave your business vulnerable to unforeseen taxes and fees.
12. Protect your business with insurance
Your small business is likely an extension of yourself and may even feel like your child. So make sure it’s always protected. Just like when you have a child you add them to your health insurance plan or open a savings account on their behalf, the same goes for starting a business. Your business may need different types of insurance, but the most common are general liability, product liability, professional liability, commercial property and home-based business insurance. Review the business insurance descriptions and purchase whichever combination of plans makes sense for your business.
It’s time to get your business up and running and make it ‘real’. Give your business the presence and credibility it deserves by following these next steps on the small business startup checklist.
13. Build a website
In today’s world, a website is a necessary requirement for any business and a big part of any digital marketing strategy — it’s often how people discover new businesses and validate their authenticity. Create a website that reflects your brand’s values and offerings, effectively communicating your brand promise to prospective customers.
14. Set up a business email account
Business email is so important for credibility purposes — responding from your personal email account can come across as unprofessional or too informal. Set up two business accounts — one for yourself, and one for general inquiries or customer service messages that come through your website. That way, you can manage and prioritize all business correspondence with ease.
15. Order marketing materials
Digital marketing is important, but don’t overlook traditional print marketing materials. Business cards, postcards, brochures and flyers are useful materials that can be used in a multitude of ways. Think business cards that double as a rewards tracker or postcards that get packed with a thank-you note in shipped orders. Design these materials in your brand colors, add your logo and include any useful, relevant business information, like your operation hours, store location and contact details!
Tip: Not sure how to market your small business? Here’s how to develop the perfect marketing mix.
16. Network
Use every opportunity to network, connect with customers and spread the word about your new small business. Attend (or sponsor) community events, talk to people while you wait in line for coffee, join a local co-working space or revisit old contacts who may be interested in your new venture. Networking and connecting is half the battle of getting a business off the ground and into people’s minds.
17. Open your doors for business
Once you’ve laid the groundwork for launching your small business, ordered your marketing supplies and spread the word to your network, it’s time to open your doors (digital or brick-and-mortar) for business! Generate excitement around your business launch with a special event or limited-time promotional offer.
18. Provide outstanding customer service
Customers expect a higher level of service when they shop small, so make stellar service a priority for your business. Establishing loyal customers and creating a memorable customer experience will help sustain your business in the long run, so invest time, energy and care into your customer service approach.
Small businesses are often a team of one…and it can be lonely at times. Establish a support system that keeps you motivated throughout every challenge and helps you reach your business goals.
19. Find a business mentor
This is easier said than done, but having a mentor is an underrated asset for a small business owner. An unbiased third party can offer an objective lens when you’re wrestling with tough decisions. Look to someone who has business experience, is trustworthy and whose opinion you value.
SCORE is a program dedicated to connecting entrepreneurs with mentors. They can match you based on industry and other factors to find the best fit.
20. Take advantage of free resources
Small business budgets are usually small, so take advantage of the free resources on offer. Social media is a great way to market your business for free. Many social media tools offer free analytics and insights, so you can better evaluate your ROI and narrow your target audience. Dropbox offers a cloud-based storage system for your business, so you can work from any location — like your local library, co-working space or coffee shop. Platforms like LinkedIn, Clubhouse and Twitter help businesses stay up-to-date on the latest industry trends.
Tip: If you need inspiration, our social media tips, content ideas and guide to developing a social media strategy can help!
21. Turn to your network for support
Just because you’re the sole proprietor, doesn’t mean that your network can’t help you. If an ex-colleague has expertise in a certain area, reach out to them and ask for advice. Is your friend a strategic planning genius? Ask for their help to create your business plan. Is your neighbor an accounting major? Ask them for advice on balancing your checkbook. Your close network will likely be more than willing to help when asked. Think about how you can leverage the talent and skills around you, so you get the best results for your business.
22. Remind yourself why you’re doing this
You can easily lose sight of your dream when starting a business. Dedicate a few minutes each day to reflect on *why* you chose to pursue your business idea. It will ground you and encourage you when things get tough. Starting a business is a process…try to enjoy it! Watching your small business grow and succeed is the ultimate reward for your hard work.
Small business startup FAQs
How can I build a strong brand from the start?
A small business startup checklist can help build a strong brand from the very beginning. By creating a logo, writing a business plan and building a website, you can ensure that before it even launches, your business has a strong brand identity and connects with your target audience effectively.
Do I need a business plan?
Yes. Writing an actionable business plan is a necessary and useful step on the business startup checklist. In this detailed document, outline your business concept, and the strategies you’re going to implement to launch your new business, as well as projected growth and long-term objectives.
What are the key legal steps to start a business?
It’s important to ensure that your small business complies with local laws and regulations. You can do this by officially registering your business and securing any necessary business permits and licenses.
Do I need a checklist to start my business?
A new business checklist ensures you don’t overlook important steps when launching your small business. It helps streamline the process, keeps you organized and ensures compliance with legal and financial requirements, saving time and avoiding costly mistakes.
