Not every small business is positioned for success, make sure you keep this checklist in mind before you go “all in” on your new business venture. When you’re starting up a small business, there is no shortage of work to be done. It’s definitely a labor of love.
It can be easy to overlook some of the key things you need to do to be successful and make your life easier. Make sure these items are on your checklist to get off to a great start.
Business Structure
Before you even think about opening your doors and selling your products or services, you need to set up a legal structure for your business. That means deciding whether you want to set up shop as a Sole Trader, Limited Company, or Partnership in the UK or as a Sole Proprietorship, Partnership, LLC (Limited Liability Company), Corporation, or S-Corp in the U.S. There are pros and cons to each type of business depending on your situation.
Permits, Licenses, and Insurance
When it comes to paying taxes, check with the appropriate government agencies for its requirements. You will likely need to register in order to collect and pay the appropriate sales taxes. There may be local jurisdiction taxes or VAT taxes to collect and pay as well.
You must protect your assets and yourself in case of natural disasters, omissions and errors, and liability. There may be requirements for particular types of levels of coverage as part of your lease or licenses. General Business Insurance or Business Owner’s Policies vary depending on the type of business, location, and operation. If you have company vehicles, you will need to have them covered as well.
Name and Location
Naming your business is not as easy as it sounds. Because you will need signage and printed material, a website, and collateral, you want to get it right the first time. Mistakes cost money. Make sure you do a trademark and copyright search to avoid problems down the road. You can search the US database here and the UK database here.
Finding a desirable location, negotiating a lease or purchase, and equipping your location will also take time.
Business Plan and Financing
If you haven’t written a business plan, you need to do so. Not only will it help to structure your business and help you keep on track with your strategy, but it is also essential if you want to get a small business loan from the government or a lender.
As part of your business plan, make sure you pay attention to marketing efforts. You’ve got to invite people to your retail establishment or hospitality business if you want them to come!
Hiring
Whether it’s just you, or you are hiring people to help run your business, you may have to register than with the state, obtain Workers Comp Insurance, and/or Unemployment Insurance. Depending on your business category, you may also be subject to hiring requirements, such as EEO regulations or E-verify in the U.S.
Accounting and Record Keeping
You will want to make sure you know the rules on what information you must keep and for how long. Most company documents typically need to be kept on hand for three years.
This includes items like owners’ names and addresses, formation documents, financial statements, and tax filings.
Setting up accounting systems to manage your finances and track key business operations is critical. You need to have a way to keep track of inventory, process orders, pay bills, employees, and taxes. The more you can automate, the better.