Do you dream of owning your own successful business? One where you achieve your financial goals or turn your hobby into your livelihood?
With our comprehensive start up checklist, you’ll find the helpful direction you need to transform your business idea into the reality of becoming a business owner.
Decide on a viable business idea
- Develop a comprehensive business plan
Write down what you aim to achieve over your first few years in business. Your business plan will be crucial for showing to your bank, keeping your business on track, and remaining focused on achieving your business goals and objectives. Use our business plan template to get started.
- Decide on your business structure
The four main types of business structures in the United States are sole proprietorship, partnership, Limited Liability Company, and corporation. Find out more about each business structure on the Small Business Administration site.
- Check your business name is available and register it
Come up with a name that’s unique, effective, descriptive and memorable. Aim for a name that has an impact on people, isn’t easily forgotten, and relates to your industry. Find out more about safeguarding your business name.
- Find enough money to start up
Identify your start up costs and carry out a break-even analysis to find out how much money you’ll need to successfully launch your new business.
- Research lending options
Take a look at the financing options available for your business. Be sure of how much funding you need during your start-up phase and your projected sales. Take a look at our small business lending options.
- Settle on the best supplier for your business
Use industry networks and your business contacts to find a reliable supplier. Organize contracts for any raw materials or products you need to get underway.
Check for compliancy
- Apply for an employer identification number (EIN)
In the US your employer identification number are primarily for tax administration purposes. You can find how to apply for one on the Inland Revenue Service (IRS) website.
- Set up a reliable accounting system
Being able to view your transactions and cash flow situation in real time is a huge advantage, so think about using a cloud accounting system that you, your staff and your accountant can maintain together.
- Look into options for business insurance
It’s important that your business is covered by the right insurance. Determine which types of insurance your business will need most, and weigh up the risks versus the costs.
- Talk to your lawyer and accountant
Your accountant and lawyer will go over your business plan with you so to check it’s all in order before you present it to your bank.
Undertake market research
- Find out the size of your potential market
The best way you can learn how large your target market could be (and your likely share of it) is by conducting some market research. Complete our online training about researching your market.
- Establish your competitive advantage
Your point of difference, unique selling point (USP) or competitive advantage will be a crucial factor in the success of your business. Your potential customers want to know why they should shop with your business rather than your competitors.
- Ensure it’s simple to make and receive payments
Will you be able to offer multiple payment options that include the latest technology? Ease of payment will entice customers and help you maintain a healthy cash flow.
- Explore pricing options
Can the prices you’re going to charge compete with your competition? If you’re charging more than your competitors, your marketing strategy needs to tell customers why they’re paying more. View our video on how to set a price.
Create a marketing plan
- Analyze your customers’ buying behavior
Speak directly to your customers to find out their needs and buying behaviors. Find out how often they’re likely to purchase from your business.
- Construct profiles of your target customers
Design profiles of your main types of customers. Understand their purchasing habits so you can sell more. Learn when, what, why, where and how your customers prefer to buy.
- Complete social media surveys
Survey your customers online and use the results to make improvements to your business, and its products and services.
- Create an online presence
Social media can help you drive traffic to your website, build relationships with your target customers, and enhance your credibility. Start working on building a presence online. Take our quiz about building an online strategy.
- Attend trade shows and industry events
Boost your brand awareness, check out your competitors, and utilize your networking skills to get your offerings to your target market at events and trade shows.
- Build word-of-mouth advertising
Encourage your regular customers to refer their friends, family and work colleagues to your business. Offer them small loyalty rewards for their efforts. Take our business quiz on cost-effective advertising.
- Develop and grow your advertising campaign
Plan an advertising campaign that fits within your budget. Will online promotions, email marketing, signage, or print or radio advertising be most effective for your target group? Complete our online training to help build your own marketing plan.
- Improve your customer retention
Remind your customers when it might be time to purchase from your business again, by using your social media platforms, a loyalty program, or an email automation system.
Establish who your competitors are
- Examine your competitors
Take a good look at what your competitors’ do well and not so well. Then, work on an advertising angle that might convince their customers to switch to your business. See our competitor analysis video for more information.
- Carry out competitor SWOT analyses
Compiling SWOT analyses of your main competitors will help your business maximize its strengths, reduce its weaknesses, take advantage of its opportunities, and avoid threats.
- Establish your business’s point of difference
Decide how you want to position your brand, determine which customers it will be able to serve best, and look at how it will fit into the competitive landscape. Learn to market your point of difference.
- Decide how you’ll price in relation to your competitors
Do you plan to compete on price, or on the benefits of your products or services? How can you counter the actions of established competitors when you enter the market? Read more about getting your price right.
Be sure you can make a profit
- Estimate your overheads and margins
The regular expenses your business will have (regardless of how much you produce) are your overheads. Calculate them, then determine some sales goals to work out your profit margin.
- Do a break-even analysis
It’s important to have an accurate estimate of how many items (or hours of service) you’ll need to sell each week, to cover your costs and begin to make a profit. Learn how to calculate your break-even point.
- Carry out a cash flow forecast
You’ll want to predict when you might have too much or too little cash, so generate a cash flow forecast to help identify sales and expense variations month by month. Work out your cash flow forecast.
- Conduct a sales forecast
When starting your business look at trends in your industry, check out past statistics of market demand, and watch your competitors to estimate your own sales forecast. Find out more about forecasting sales.
- Check your capacity and capability
Make sure you have the right equipment, staff and capability to do the job. Do you have the right manufacturing tools, or can you call on the right knowledge and expertise?
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