Small Business Startup Checklist: Launch Your Startup In 10 Steps

Setting up a small business can be stressful and challenging, and organization is the key to delivering the best results through effective time management.

Whether launching a side business online or a brick-and-mortar store, a business startup checklist is vital for managing your priorities.

This guide will help you create a comprehensive checklist, from setting up a company bank account to acquiring the necessary licenses and permits.

Small Business Startup Checklist: Launch Your Startup In 10 Steps

Preparing to launch a new business requires juggling various tasks to ensure compliance with the law and the ability to offer customers what they want.

A great business idea is worthless if you don’t implement it with a clear strategy that covers aspects such as administration and customer marketing.

We’ve created this essential business checklist to help you get started and focus on managing your priorities to deliver the best outcomes.

Step 1. Research Your Market

The best small business ideas succeed because the owners fully understand the market they’re entering and what the competition offers.

This means prioritizing market analysis and research at the top of your business checklist to assess what other businesses offer to consumers.

It also requires paying attention to the needs of your potential customers and understanding what products or services are in high demand.

This research is vital for fine-tuning your concept and determining how your business operations can best facilitate a powerful launch with long-term growth potential.

It also allows you to identify other small business opportunities that can be capitalized on to improve your productivity and overall performance.

You can keep track of your research in spreadsheets, compare prices and products, and then use this documentation when writing your business plan.

Read more: Exploring the best side hustles to pay off debt.

Step 2. Write A Business Plan

Writing a great business plan is the next crucial step, and this will be used as a road map to drive your priorities and manage your time.

It can also be used to contact potential investors if you’re considering seeking outside financial assistance to launch your company.

There are plenty of handy resources for writing a winning business plan, covering the core sections you’ll need to cover.

Some of the critical sections a business plan should include are:

• Executive summary: This section briefly overviews the company, similar to a brand manifesto.
• Company description: Next, your business plan should explain what your business does and how it differs from competitors.
• Market analysis: Here, an overview of your market and core target customers are outlined in detail.
• Products and services: In this section, you should explain your products or services and provide pricing information.
• Marketing strategy: Explain in this section how you plan on marketing your products or services through various channels.
• Funding and financial projections: This section outlines your initial funding to cover startup costs and your expected profits and losses once you are up and running.

Information gathered through your research phase can be used to fill out many of these sections and demonstrate your grasp of the niche market.

Step 3. Analyze Your Startup Costs

While some people can start a business with no money, most small businesses will require startup costs and other financial considerations to get started.

Let’s look at some of the typical startup costs that business owners need to factor in to ensure their cash flow can cover all the bases.

Business Insurance

Business insurance is an essential requirement regardless of the nature of a small business, with variable costs depending on the business structure and number of employees.

With the future of small business insurance constantly changing, it’s essential to research and compare insurance providers to get the best deal.

Cost To Hire Employees

If you’re running a small business that needs employees to function, the costs of hiring, onboarding, and training must be included in your checklist.

For brick-and-mortar businesses, you can hire employees in your local area, or for online companies, choose freelancers looking to make money on Upwork and elsewhere.

Tools & Equipment

Most businesses require initial setup costs covering the tools and equipment needed to run smoothly and deliver products or services to customers.

Cash registers, machinery, and computers required for daily administration all fall into this category and will impact your overall expenses.

Payment Processing Systems

If you’re dealing with customers, you’ll need to set up a payment processing system that allows you to accept credit card payments for your sales.

Many popular online payment systems exist, such as PayPal, while systems for managing payments for physical products come with a point-of-sale terminal for ease of use.

Explore Friday’s website templates.

Step 4. Assess Funding Options

Once you’ve worked through all of your startup expenses and other costs associated with establishing your business, it’s time to assess your funding options.

Some small business owners use their personal savings to start their companies or ask friends and family for loans or grants.

Others consider taking on a second mortgage, leveraging other assets to help acquire the necessary capital to cover the main expenses in the early stages.

Government-sponsored resources are also set up to help support small businesses and navigate the red tape before hitting the marketplace.

Several crowdfunding platforms can generate financial support from potential customers who are interested in your product or service.

Lastly, you can supplement the required funding by contacting dedicated investors, such as angel investors and venture capital firms.

These resources will likely expect a high return on their investment with specific requirements, so make sure your numbers are accurate before considering this approach.

Get your business online with Friday’s website builder.

Step 5. Establish Your Brand

A brand identity is another key item on any small business checklist, establishing your products or services at a glance and driving customer awareness.

Brand identity begins with a business name and then requires designing a logo and other branding elements around this name.

It should be clear and eye-catching without overusing colors or details, so it appears clearly when displayed at various screen resolution sizes.

Your branding should also carry across your marketing strategy, from paid ad campaigns to traditional print advertisements.

If you’re considering content marketing and incorporating blogging into your marketing initiatives, you can use this to promote your brand further.

Promote your brand with Friday’s blog website builder.

Step 6. Register Your Business

With your business structure decided and financial support in place, you’re ready to move to the next phase of the checklist and register your business.

This process will depend on the structure used, which ranges from a sole proprietorship or partnership to limited liability companies or corporations.

Each structure has rules and regulations, from the amount of your business tax and sales tax to personal financial protection.

You’ll also need to decide on your business name based on the research and brainstorming process of establishing your brand.

Before they can conduct business, all business types must register with the IRS and obtain an Employer Identification Number (EIN).

This tax identification ensures compliance with the federal government and is used whenever you pay taxes or apply for additional business licenses.

Once this is set up, a small business administration’s processes are relatively streamlined and can effectively run themselves with minimal drain on resources.

Step 7. Get Licenses & Permits

Depending on the nature of your small business, you may be required to adhere to specific requirements around licenses and permits.

These are typically industry-specific and can be obtained through your local or state government to ensure your company’s legal structure is fully compliant.

If you’re working from home, you may still need to get licenses and permits, such as home occupation permits, depending on your business type.

Some of the other standard licenses and permits businesses require include:

• Health permits: Hospitality businesses dealing with food and drinks must legally meet health and safety regulations.
• Zoning permits: Certain business types need zoning permits to function in an area allocated for their business activities.
• Occupational licenses: Lawyers, doctors, accountants, and other professionals must have the relevant licenses and certifications to perform duties in their area of expertise.
• Sales tax permit: A sales tax permit allows businesses to collect and remit sales tax on taxable sales of services or products.

If you’re unsure what licenses and permits are required for a specific business, contact your local authorities or speak to a qualified accountant.

Learn more: Get inspiration with these positive business affirmations.

Step 8. Invest In Relevant Tools

Running a small business administration daily can be incredibly time-consuming, particularly if you don’t have the right tools for the job.

This means preparing the necessary software and other equipment for managing and shipping physical products early on to avoid potential issues later on.

There are many excellent tools for freelancers that you can use for free or on a tight budget to manage schedules and communicate with your clients.

Here are some of the key tools you’ll need to invest in to streamline your business operations:

Small Business Administration Management Software

You don’t have to run a large human resources department to require administration management software to track your business’s daily operations.

This software helps streamline everything from how you pay employees and manage unemployment insurance to paying taxes and other bills.

You can also invest in performance management software to gain further insights into employee productivity and enhance engagement.

Payroll Software

Dedicated payroll software is also necessary when managing a small business, particularly if you plan on hiring more employees over time.

This software is beneficial when launching a service-based business with a greater likelihood of higher staff turnover and casual workers.

Accounting Software

Whether you run a limited liability company or another type of business, accounting software is another must for managing your company’s finances.

You can pick up free accounting tools for small businesses or consider investing in professional accounting software if your budget allows.

Once set up, this software can track incoming and outgoing money, invoice suppliers, and accept credit card payments.

Read more: Dive into these essential small business tips.

Step 9. Explore Revenue Opportunities

The best scalable business ideas capitalize on all opportunities for revenue growth and drive expansion into new products, services, or territories.

This growth potential should be another consideration on your small business checklist, particularly when seeking outside investment when starting a business.

While these growth opportunities will vary depending on a business’s nature, a few strategies have broad applications.

These strategies include:

• Product development: As a company grows and acquires data on the sales performance of its existing products, it can reinvest in further product development to meet customers’ demands.
• Territorial expansion: Choosing the optimal business location can significantly affect the reach of potential customers, and territorial expansion allows companies to maximize this reach.
• Market penetration: The more experience a company gains over time, the better it can understand customer expectations and retain its business through loyalty schemes and other mechanisms.
• Business diversification: A more risky approach to business growth is through diversification, with profits reinvested in new products or services for a more varied revenue stream.
• Online opportunities: Small business owners running traditional brick-and-mortar stores can increase their sales through a website by setting up an online store.

Expanding revenue generation is a continuous process that requires patience and testing to get right, but the rewards can be impressive in the long term.

Sell online with Friday’s e-commerce website builder.

Step 10. Grow Your Team

Lastly, your small business checklist should factor in employee growth as a core element of the business model and plans for the future.

Aside from solopreneur business ideas, most companies rely on building a team of dedicated and professional employees to stay afloat.

Whether your team is committed to customer-facing roles in hospitality or working behind the scenes manufacturing products, they require ongoing training.

This training will help them perform their roles more effectively and give them a greater sense of value and appreciation for their work.

Clear communication, a robust feedback system, and performance-based rewards and incentives can be highly beneficial when growing a team.

Check out Friday’s website builder pricing.

Summary

With many obstacles and endless red tape, setting up a small business checklist is vital for ensuring your business venture runs smoothly.

Using this guide as a starting point, you can create a detailed checklist tailored to your business concept and adhere to local, state, and federal laws.

As you start implementing the points on your checklist, you can refer to them throughout the process and refine them according to new information.