12 Steps to Starting Your Own Business For Beginners

Finding the best course of actions does not have to be daunting, we all started somewhere.

By Savvvy Team

October 4, 2021

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Starting you business take self-confidence and layers of research, and amazing perseverance.

In this article, we will discuss

• Ways you can start conducting research into your niche.

• Start writing a business plan so you get an idea of what your goals are and how to get there.

• Ways to structure and register your business for tax and legal purpose.

• Getting all the proper documents to open up your business bank account.

• Get your website up and running today to promote your business on Bluehost for only $2.95/month

With how fast the world has been changing many of us are finding our purpose and turning it into a side hustle.

Whether you are looking for extra streams of income or ready to take a leap of faith into starting your own business venture now is the time.

You deserve to give yourself the financial freedom that most of us strive for.

Starting a business is the easy part in the grand scheme of things but can be the hardest part is to start, staying consistent and persistent.

Learn what you are getting yourself into, be ready, and resilient to the obstacles you are going to be facing.

Do your due diligence and research into your niche before you dive in.

Find out more about what your drive is so you can continue growing your business.

Hone in on the reason why you decided to start your business.

This article is not just for those who are looking to start their business but also who have already started it and looking for something they may be missing.

As the famous words of Geppetto, "Let you conscious be your guide". The list below is not in any particular order. dLet’s get started.

1. Conduct your research

What type of business do you want to start? What type of customers do you want to attract? How will you reach them?

Find out what it is you want to do and then look up what it takes to get it done.

Make sure you start writing this down as it will be the start to a great foundation that is required to build a sustainable business for the long run.

Research your customers and competitors in the market and decided if it will be a right fit for you and your family.

If you do not know what type of business you want to get started then start looking at your current hobbies as options.

2. Choose your business name

There is nothing more confusing than not having cohesion when it comes to your business name.

So choose wisely!

But, before you do start looking into your business name availability such as your domain name, social media, email addresses, or relevant mediums that you will be using so you are building your brand the right way from the start.

Please note that you may spend hours, days, or even weeks thinking of a name prolonging the process.

In the end, you may want to change your business name later on in the future so do not think too long and hard about this one either. Just start.

3. Write your business plan

You may have wanted to scroll past this but hold on – if you do not feel comfortable or have no idea where to start then get the help from those who know what they are doing!

This is the fun part! (Okay, maybe not for many of us).

If you are looking to take a leap of faith then look into hiring a professional or even get a friend to help you with this one. A vision not written is not going to amount to success.

You are able to use free online tools to help do this for you, if not, look into hiring a professional from Fiveer, THUMBTACK or UpWork. These service platforms will be sure to help you save time and help you get connected to those who have experience.

4. Fund your business

Although there has been many people who have started their businesses with no money in their pocket many others will have to be prepared for the out-of-pocket expense.

This is not to say you can not start without money, however, realistically it takes money to make money.

Most of us will have to invest to get your business off the ground. This could be from purchasing your domain, subscription for marketing tools or platforms, sample products, merchandise, or anything else to bring your business into reality.

5. Pick an address

A great location can significantly improve your business performance if you are needing a physical site location.

Is your business online? You may still want to look into a business address for privacy concern as this information is made public depending how you open your business.

Not only is this a privacy concern but it may lead to potential legal consequences if your business is under your personal address.

Look into a virtual address or investing into a physical site location for your business for the future.

6. Choose Your Business Structure

When starting a business you must decide what form of business entity you would like to establish.

Incfile will help you file the form for your business which will determine your businesses income tax return you have to file for. We will cover this later on. For now, the most common forms of business are:

• Sole Proprietorships

Most common type of business ownership, this business structure is run by you and you are responsible for the business debt. No distinction between personal and business income.

You will have total control of your business and this type of structure has few requirements.

Hint: you will be operating under your social security for tax purposes. The most attractive one for a small business owner starting out is the LLCs.

I recommend consulting with a legal advisor on which one is best for you as nothing is this article is legal advice.

Partnerships (Two Types)

General

All parties invest their money into the business and both are liable for debt. These types of partnership do not require a formal agreement. These can be verbal or implied.

Limited

Requires a formal agreement. Must file a certificate of partnership with the state. Limited partnership allows the parties to limit their liability towards the business debt.

Corporations

These types of entities are considered a legal person.

For tax purposes the business is taxed as "personal income" to the business. The owner has limited liability to the company's debt or losses.

This one requires more complex paperwork and is taxed twice.

Limited Liability Company (LLC)

Provides owner with limited liability while providing income advantages of a partnership.

The profits of the LLC are without double-taxation unlike corporations.

Starting an LLC has legal and filing cost which can become high. This one may be the better option starting off.

7. Time to Register Your Business

Not all business will need to be registered.

However, it is recommended to consult a legal advisor and do research into how you will structure your business so then you can look into what is required to register your business.

The type of business, depending on the state, will determine how you register. Look in to this as you may not need to register your business.

8. Set Up Your EIN

This is also known as an Employer Identification Number (EIN) — works like a personal social security number, but for your business.

It allows your small business to pay state and federal taxes. Hint: if you business does not require an EIN you are most likely operating under a sole proprietor.

Businesses obtain state tax ID numbers from the department of revenue of the state where it is located. Check your state for more information.

9. Get Your Permits & License

Depending on the type of business you are operating, a commercial enterprise must obtain a license that allows it to carry out its chosen economic activity.

For example, if you are looking to open a food truck you will have to have a permit and license to sell food or be able to park in a particular area.

There are fourteen types of business license you might need (this may be subject to change from the time that the article is written). Make sure to look into your states requirements for more information.

10. Open Your Business Bank Account

Opening a business bank account requires proof of identification for both you and your business so make sure you have the proper documents.

If you are opening up a business bank account you most likely not operating under the sole proprietor.

You may need to provide some forms including your state-issued driver's license or passport, your business license or your partnership agreements.

Your specific business also may need to provide additional materials. Let’s start seeing that money rolling in!

11. Start Your Website

Great news!

No matter what step you are in the process of starting a website, whether you have your domain name and looking for a hosting site or just needing unlimited email for your site, HostGator provides you with your domain, hosting, and unlimited emails all in one place.

It is very important to have a place online where your customers can go.

Majority of people get their information from online so if your business is not there, then you are losing out on the potential growth of your business.

Here are some steps to get you started even if you have had little to no experience.

Domain

Websites

• Wordpress

• SquareSpace

• Wix

• Godaddy

Hosting

12. Stay Consistent

Stick to your guns! Ask for help when needed. Be persistent and do not give up.

Starting is one of the hardest steps in your business journey. Start and figure it out while go, you will not, and are not expected to know everything.

Remember to embrace change and stay focused on the reason why you started your business in the first place.

Find a group of people who are just as ambitious as you are and stay committed.

Write your goals down and remember to continue to work on it and revise when needed.

Here are some of the topics we covered in the article

• Make sure to conduct your research in your niche to decided whether or not it is a viable option.

• Choose your business name and do not think so hard about this step as this may hinder you from even starting.

• A business is not solid without a business plan. This is where most businesses fail. This is where you can visually see your goals for your business and what you need to do to get there. This part helps you stay focused.

• Start funding your business with investment or you personal saving. It takes money to save money.

• Your business location can make or break you sales. If you are online look into a virtual address as your privacy and legal implication may be jeopardized.

• Figure out the best way to structure your business whether it will be a Sole Proprietorships, Corporation, Partnership or LLC. There are other ways to set up your business not mentioned in this article.

• Start registering your business name with your state so that you are in compliance with federal state & local tax laws.

• You will need to do more research to find out if your business required a license and/or permits.

• How are your customers going to find out about you? Get your website up and running today.

• Keep going and stay consistent, the hardest part can just be starting.