A Step-By-Step Guide to Starting a Small Business in 2023
Here at MSBI we know that starting a small business can be an exhilarating and rewarding endeavor. However, it can also be daunting, especially if you're doing it from scratch. To help you on your entrepreneurial journey, we've created a step-by-step guide that covers everything from idea generation to setting up your workspace with essential tech equipment. Let's dive in!
1. Ideation and Market Research
Begin by brainstorming business ideas based on your skills, interests, and passions.
Conduct thorough market research to understand the demand and competition for your product or service.
Essential Tech Tool: Google Trends – A free online tool to analyze market trends and demand for specific keywords or topics.
2. Develop a Business Plan
Outline your goals, objectives, strategies, and tactics
Include financial projections, funding requirements, and a timeline for your business to get to market and start servicing customers.
Go read my other article which helps with this – You’ll need a comprehensive business plan and taking time on this is worth it.
3. Choose a Business Structure
Decide whether to operate as a sole proprietorship, partnership, corporation, or LLC.
When I started I chose a single-member LLC as I am the owner of a marketing consulting business. However, when your company is making than $60k/year, it’s potentially better to transition to an S-Corp. There are always many important considerations to your structure and that can be dependent on how many people are involved as well.
It’s best to consult with a lawyer or accountant to understand the legal and tax implications of each business structure, but you can do a lot of research online. Ultimately, single-member LLC is going to be a fine choice for many solo entrepreneurs who are struggling to decide. As always do your research and choose the structure that is best for you and your company.
Essential Tech Tool: ZenBusiness – This is what I used to start my business, and it was incredibly easy and convenient. They also have add-ons to help you track your expenses which I took advantage of. You can also use ZenBusiness for step 4 below.
4. Register Your Business
Choose a unique and memorable name for your business.
Register your business with the appropriate government authorities to obtain necessary licenses and permits.
Essential Tool: U.S. Small Business Administration (SBA) – Offers resources and guides on registering your business and obtaining necessary licenses and permits.
It might not seem like it, but it’s very important you take the proper steps to register your business in your state. If you’re reporting income to the IRS (or whatever tax authority for your country), you need to be properly set up with the state.
5. Set Up & Track Your Finances
Open a business bank account to separate personal and business finances.
For simplicity, it’s easier to choose the same bank you’ll use for checking accounts as you’d like to use for your business credit card (It’s time for points!).
The card and account I think do the most for you is the Platinum Business American Express. It has amazing benefits and also pairs nicely with their business checking. American Express has top notch customer service which is what you want in your banking partner.
My preference for a personal multi-use credit card is the Gold American Express, and I included my referral link if you’ve been looking to an alternative to the Chase Sapphire.
Set up a bookkeeping system and track your expenses and income diligently.
You can do this cheaply in google sheets, but sometimes having a software that makes all the necessary fields clear for tax reporting and audit protection is just better.
Essential Tech Tool: QuickBooks – A widely-used accounting software that helps you manage your finances and generate financial reports.
6. Create a Brand Identity
Design a logo, choose your brand colors, and develop a consistent visual identity.
Build a professional website and set up social media profiles for your business.
Essential Tech Tools:
No Coding Choice: Squarespace – A user-friendly website builder that allows you to create a visually appealing and functional website with minimal coding. This will make you work within Squarespace’s design structure, but it’s how I build this website and it works great!
With Coding Choice: Wordpress - It’s just most flexible system while still having tons of plug-ins and simple enough editing tools. Had I started this website over, I might have chosen wordpress.
7. Develop a Marketing Strategy
Identify your target audience and the best marketing channels to reach them.
Create an action plan to focus and work towards your key performance indicators (KPIs)
Create engaging content, leverage social media, and consider paid advertising to attract customers.
Essential Tech Tools:
Google Ads - Start with Google Search ads and work your way up. This is the easiest because you already have a website and you can do keyword research to help inform your ads.
Meta Ads - What I have been taught and trained on, Meta Business Manager. This is more advanced and requires more focus on creative which is a barrier to entry for many. If you have mastered Google Ads and are crushing search, this is the natural next step
Klaviyo – An email marketing service that helps you create, send, and track email campaigns to connect with your audience.
8. Set Up Your Workspace
Determine whether you need a physical location or if you can work remotely at home.
Invest in essential tech equipment, such as a computer, high-speed internet, printer, and phone system.
Note: Do not use your work computer for your personal ventures. It’s not 100% going to happen, but there is an argument that any “work” done on a business device is owned by the company. Do not put yourself in a situation where you could lose the hard work you’re doing.
Go over to my product reviews where I compare many different office items if you’d like any suggestions!
Conclusion
Starting a small business from scratch can be challenging, but with careful planning, the right tools, and perseverance, you can turn your dream into a reality. Keep this step-by-step guide in mind as you embark on your entrepreneurial journey and set yourself up for success with essential tech equipment for new businesses. Good luck!
If you’re in need of some inspiration to choose your next venture check out my blog on 8 profitable small business ideas for aspiring entrepreneurs.