All You Need To Know About Small Business Startup Checklist

• By : Staff Writer
• Business Development
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Introduction

Small Business Startup Checklist comes into play when you make up your mind to start a business. It is only possible to start a small establishment when you take the right steps at the right time. Not sure what steps to take to establish your business? What to do first? And what follows next?

This article would enlighten you on the definite actions that are relevant to start your business. However, this is not an ultimate manual on how to start a business from scratch. It is rather a handy list of all the things you need to remember when you are set on starting a company.

Though you may have an idea of the objectives you have to achieve, consulting a business checklist will scale up your success.

Table of contents

• What is a Business startup checklist?
• Conceiving the business idea
• Choosing a legal structure
• Choosing a business name
• Designing a company logo
• Assessing the competition in your niche
• Building a product prototype
• Conducting market research
• Mentor consulting
• Obtaining Licenses and Permits
• Get your FEIN – Federal (Employer Identification Number)
• Obtaining Business Insurance
• Get a business bank account
• Draw up a brief business plan
• Creating business alliances
• Define your customer profile
• Create a Website
• Financing your startup
• Establish a Business Location
• Find an attorney
• Find an accountant
• Get equipped
• Set your product prices
• Develop pitching stories
• Market and launch your business
• Conclusion

What is a Business startup checklist?

A business startup checklist is a skeletal draft of a business action plan. It is a job aid that is used to ensure consistency and completeness in executing a list of objectives. It is also a control list that is designed to help in performing activities that are repetitive in nature. A checklist is used to make checks of activities to be certain that the inspector does not leave anything important.

This catalog is a guide on the steps to take to launch a new business the right way.

The checklist:

Conceiving the business idea

Your first task as an entrepreneur is to think of a business idea that tends to attract consumers. Choose a niche in an industry that you have an interest in and know well.

However, get a business idea that approaches a particular market from a new angle. Your unique business idea should satisfy the following:

You have to validate the business idea and be certain it answers a real-life problem and can be monetized. Also, examine the size of the market to have an idea of your competition and target audience. Finally, be frank with yourself; think carefully about your goals and motivation before proceeding.

Choosing a legal structure

To provide you the most number of benefits, these types of legal structures will help you select a suitable business:

Sole Proprietorship or DBA (Doing Business As) is a type of business that is not partitioned from the owner, but it has its own name and is operated under the owner. Here, owners are personally liable for the company’s profits and losses.

Income is, however, added to the personal tax return of the owners.

The partnership type of business is unlike the sole proprietorship, as the partnership has more than one owner. Otherwise, all other rules are alike.

Another type of legal structure is a Limited Liability Company (LLC). An LLC is an independent legal entity completely separate from its owners. The owners are not liable for the debts, and the business is taxed depending on the number of owners.

The S-Corporation or Corporation; The only deviation from the LLC is that the company is taxed as a whole, plus the terms of tax advantages it enjoys.

Choosing a business name

No business operates without a name. Therefore, choose a unique name in connection to what services you intend to offer in your business. The business name differentiates your business from your competitors. Your business name, however, should be memorable and communicate the purpose of your business.

Your business name must have the following characteristics:

First of all, it must be descriptive and not vague. You must also creatively use related keywords. Again, make it simple and not too long. You should, however, refrain from copying your competitors.

You should avoid using your own name. Choose a scalable name. Then, make sure the name is not registered by another company.

Designing a company logo

A logo refers to the visual emblem that identifies a particular company. In this case, you have to generate a logo that suitably represents your business. Consider the following when planning your company logo;

In the first place, you must understand why your company needs a great logo. Also, you have to choose your design style which will make you stand out from the rest. Pick the right typography. You should also pay attention to color since it speaks a lot about your design. Also, define your brand identity. Then integrate your logo design into your brand.

Assessing the competition in your niche

Take a run at potential rivals as a customer to appraise their costs. Find out what services they offer, and also what they do. Conduct a background investigation to find out if your business idea already exists in the market.

However, find the businesses that are in; direct, secondary, and substitute competition with your business. Also, gather information like market reputation, positioning, and branding. After that, analyze your competition’s weaknesses and strengths.

Then, find out what your competitive advantage over your competitors.

Building a product prototype

You cannot nurture a successful business if you do not have a product that people want. Therefore, optimize your product prototype or service outline if you decide to join the service industry. Your product prototype, however, depends on your idea, budget, or goals.

In building a prototype, visualize your product prototype in greater detail by sketching your idea on paper. You can also render the services of a professional prototype designer to help you at this stage. Finally, catch sight of your competitors and figure out the strategies and marketing channels that give them positive results.

Conducting market research

Before you delve into a niche, research to validate your feasibility business opportunity. Here, you have to research to see if your startup will be lucrative.

Also, you will have to ret weak your plans if you fear that your startup will not be able to attract customers. To penetrate a market, grasp its ins and outs. Also, consider the following:

The demand for your product or service nationwide, and the demand in your city. Also, look at the going rate for your product and which demographic you have to advertise to.

These are meant to guide you in your market research.

Mentor consulting

A mentor is a trusted advisor that developing entrepreneurs can consult concerning an industry or specific business situation. A coach who is very successful in your industry is a priceless source of advice. Check the following when considering mentorship;

First of all, ask yourself if you really need a mentor. Next, get to know the coach first. Also, in dealing with them, do not start addressing them by a mentor. Find out if you and your mentor are compatible.

Choose someone who has no strong ties to your business. Always express a genuine interest in whatever your coach has to say. Make yourself worth mentoring.

At least you should have something to offer back. Then, know your expectations and goals.

Obtaining Licenses and Permits

Consider the following types of permits when starting a business;

Federal Permits

You will need a Federal license or permit, considering the type of business you want to operate. You must contact the Federal agency to outline your requirements for doing business:

Investment advising, drug manufacturing, preparation of meat products, broadcasting, ground transportation, and selling alcohol, tobacco, or firearms

State Licenses

Some professions require a state license to operate. Laws vary between states so, if you are considering growing any of the following professions, then consult the right state agency:

Building contractors, banks, insurance carriers, physicians, appraisers, accountants, barbers, real estate, agents, auctioneers, private investigators, private security guards, funeral directors, bill collectors, and cosmetologists.

State Licenses and Permits based on products sold

There are state licensing requirements that are labeled on a company based on the products sold. Get your state licensing requirements of your business if you are engaged in the sale of the following:

Liquor, lottery tickets, gasoline, and firearms

Sales Tax Permit

You are required to collect and pay for sales tax if you engage in the sale of any physical product within a state. It comes in the form of a resale Permit or State Seller’s Permit.

Business License

In most counties, you are required to obtain a business license, irrespective of your business. It grants the business the authority to operate in that country.

Get your FEIN – Federal (Employer Identification Number)

This is an important number that is issued by the IRS. It is a requirement for opening a business bank account. Therefore, whether your business is a Partnership, Sole Proprietorship, or a Corporation, you must obtain a federal FEIN.

Obtaining Business Insurance

Secure an extra level of protection for your startup. Consult an insurance company and get a package. It can be a General Business Insurance or a Business Owner’s Policy, or a package that will cover everything from product liability to company vehicles.

Get a business bank account

You have to secure a business bank account to pay suppliers, yourself, and staff. Also, a bank account is required to enter business deposit payments and other financial transactions in running the business. This account should be separate from the owner’s bank account.

Draw up a brief business plan

As a startup, if you do not plan your activities, then you are bound to fail; though many business owners do not plan. Draw an outline reflecting your business plan. Now conduct research and important details about your business. Fill the outline with the information that you have.

Having goals to measure yourself against will keep you in check. Therefore, deliberate on using a Business Model Canvas to serve as a roadmap or write up a more formalized business plan.

Consult professionals like: lawyers, accountants, or business consultants to guide you. However, consider the following when writing up a business plan:

First of all, write up an executive summary of your business. Write an overview of your company. Also, list the products and services you intend to offer. Not forgetting the problems that these products or services will be solving.

Now, outline your target market details. Also, create marketing and sales strategies. Point out your key milestones and metrics. Then, come up with a list of your management team. Finally, include a financial plan, an appendix, and also create an elevator pitch for your business.

Creating business alliances

If you are involved in product business as a startup, you have to source suppliers and distributors. Networking with suppliers and distributors will expose your business to the industry. You cannot succeed in business if you do not have a supply and distribution chain sort out. This is, however, an important requirement that you should not forget in your business startup checklist.

Define your customer profile

Before you start a business, you have to know the people to whom you will be selling to. Therefore, you have to determine your customer profile by these attributes: age, relationship status, gender, income, hobbies, housing type, whichever fits your criteria.

Create a Website

Create a foundation for your marketing by creating a website. Creating an online presence is one of the keys to successful marketing. Take the following into consideration when creating an online presence:

Start by selecting a domain name. Then buy hosting for your site. Also, pick an email marketing provider. Create relevant social profiles on the major social media platforms.

You also have to create a landing page for your products or services. Create other essential web pages about pricing or other information. Also, set up a payment processor to help visitors in buying a product on your site. Set up Analytics to help you track the performance of your site against competitors. Then again, set up a business email so that your customers and visitors can make inquiries. Finally, launch a blog to make your products and services known to your niche market.

Financing your startup

Financing your business startup is one essential objective that you must pay attention to in the early stages. If you have to borrow, under seeking possible lenders and investors after you have a formalized business plan and registered your business.

If your own savings is insufficient, source for funds from family and friends. Also, if you hope to grow quickly, then you can turn to small business grants like equity investment and crowdfunding. Consider credit unions, bank loans, and other financial institutions.

You can consult the local Small Business Administration (SBA) office for guidance on different financing options.

Establish a Business Location

Are you establishing a home business, create an online-based company?

Once your figure this out, settle on a location for your establishment. Your location gives your customers and potential customers an idea of where to get your products. This is a choice to make when sketching up your business plan.

Rent office space or a warehouse consulting a commercial realtor to assist you.

Find an attorney

Obtain the services of a lawyer to help in signing business contracts and other crucial agreements. Get a layer that is well vested in your industry and small business outflows. A business attorney has a crucial part to play. Decisions like the form of business to choose and negotiations need to be done with an attorney.

Find an accountant

One of the important requirements on your business startup checklist is ensuring you hire an able accountant. The accountant will help to surmount any onset hurdles and also advise you so as to avoid making costly mistakes. There are small business accountancy services available if you cannot afford an accountant.

The accountant will help you keep; financial statements, annual reports, complying with PAYE rules, watch VAT requirements, and other amendments for the business.

Get equipped

Figure out the equipment that you need for the successful running of your startup. With this, think of the basic equipment like a computer or cellphone. Also, look at the industry-specific tools which, may include the specific product that you deal in. Some other examples include software or apps for accounting and data storage.

Set your product prices

Here, deduce your costs, including overhead cost, materials, and time, for fabricating your product. To do this, follow the industry’s rules as this will help you fix reasonable rates. You can also survey what your competitors are charging.

On this part of your business startup checklist, make sure to use the market penetration strategy or any of the marketing strategies that suites you to gain leverage. Also, you can test several prices until you come out with a price that matches demand.

Develop pitching stories

Follow your business startup checklist to keep yourself on track. Here, you have to become a storyteller at this point. Practice your sales pitch offhand at every opportunity you can get. Pitch to co-founders, investors, future team members, family and friends, and even your existing partners. You have to convince them to believe what you are saying without actual proof. Pitch, pitch, and pitch.

Market and launch your business

Open your doors and spread the word. Now that you have a good business idea, got a website, and the money to fund your business, hype up your business to the public on your opening day. Take this opportunity to get the business going without delay. Capitalize on social media, the local media, and others to spread the word and inform people that you have started a business.

Conclusion

Finally, make sure to consult the local authorities to ascertain any other legal steps you have left out. This is because laws vary by type of business and country. Your business startup checklist should guide you to double check yourself because ignorance of the law is not an excuse.

Once this business checklist is adhered to, the basics are covered. You are on your way to becoming a successful business owner.

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