Are you thinking about starting a business?
It’s a big step to take, and potentially risky, but it can also be one of the most rewarding decisions you ever make.
Starting a business means betting on yourself – your ideas, your drive, and your ability to create something meaningful. It’s exciting, empowering, and full of possibilities. It’s also important to go in with your eyes wide open. The early stages can be messy. There’s generally a steep learning curve, some uncertainty, and moments where you’ll question everything. That’s normal.
The key is preparation. Know what you’re getting into, take time to understand your finances, and make a plan before you leap. Talk to other business owners. Get advice. Ask questions. There are smart ways to start that can help you avoid common pitfalls to set yourself up for success.
You don’t have to have it all figured out right away and you definitely don’t have to go at it alone. With the right support, tools, and mindset, you can build something amazing that lasts! Your business idea deserves the chance to grow. Let’s help you do it the right way.
These are some great steps to take before you take the leap:
Step 1: Clarify Your Business Idea
Talk to potential customers, ensure there is a need for your product or service and figure out what makes your business valuable and different from competitors. Don’t underprice yourself, valuable doesn’t mean cheap.
Step 2: Write a Business Plan
Yes, write it – or more likely type it all out! There are plenty of templates out there. A well-crafted business plan helps you clarify your vision. Breaking out each section of what you want to build can also help you see if now is the time to leap or not.
Step 3: Choose a Business Name
Pick a name that reflects your brand, is easy to remember and spell, and isn’t already used or trade marked.
Step 4: Decide on a Legal Structure
Choose the business structure that best fits your goals, liability comfort, and tax preferences:
- Sole Proprietorship
- Partnership
- Limited Liability Company (LLC)
- Corporation (S or C)
- Nonprofit
Most people choose a Sole Proprietorship or LLC to start, but if you’re not sure, it’s wise to consult with a business attorney.
Step 5: Business Registration
You’ll need to register your name, and get an Employer Identification Number (EIN) from the IRS. These steps can be intimidating. Don’t worry, Mod Ledger offers a package for that. Click here for more information on that!
Step 6: Set Up Finances
After you have your EIN, open a business checking account and get a business credit card. This is also a great time to reach out to us here at Mod Ledger, so we can get your accounting software setup.
Step 7: Build Your Brand
Your brand is how people perceive your business. Decide on your logo, your brand colors, a website domain name, social media platforms (that you will actually post on), business cards and a business email address that matches your domain name.
Step 8: Set Up Operations
The initial Operations may be home based, and that’s ok. Almost anything regarding Operations can be changed or updated as the business grows. So, start by deciding on a business location or setting up a home office. Then purchase any necessary equipment or software that you will need to start your business. One part that a lot of folks wait too long to do is setting up systems for project management, communication, and customer support. Don’t be like most, start thinking about how those pieces will work, write them out as processes & update them as things change with your business.
Step 9: Protect Your Business
Get the right insurance (general liability, professional liability, workers’ comp, etc.). Use an attorney (not Chat GPT) to draft contracts for clients, partners, and employees. These, while another expense, are better to have and not need than need and not have.
Step 10: Launch and Market
When you’ve got the pieces in place, announce your launch on social media, email and a press release. That will help attract new potential customers. After each customer transaction, ask for reviews and testimonials. If there’s a not-so-great review in the beginning, allow it to make you humble, pivot & do better for the next customer.
Remember, starting a business is not a one-time event, it’s an ongoing process of learning, adapting, and growing. By following a structured list like this one, you’ll reduce the risk of missing crucial steps and increase your chances of long-term success.
If you’re thinking about starting a business, or know someone else who is, there are many resources available to assist you along the way. At Mod Ledger, we’re here to help! Not only do we offer top notch services, (such as Bookkeeping, Tax Preparation/Planning, Accounting, and Consulting) but we listen to your needs and connect with you on a personal level, meeting you where you’re at in your journey.
Do you have questions? It is ok to ask, in fact – we encourage it! We have tax professionals & bookkeepers ready to help answer your questions. If you are struggling to get started, we can help point you in the right direction. We offer business setup services that keep your business informed about the current trends so you can hit the ground running!
