12 Steps on How to Start a Small Business For Rising Entrepreneurs In 2022

1. Create a Business Strategy

A business strategy is a documented plan on how a business is going to achieve its goal. The goal can be about reaching 1 millions users, fulfilling customers' needs & expectations, creating a niche for yourself or being better than your competitors or other goals. This is an important and foremost thing before you go about starting a small business as not only it gives you a concrete path to walk on but also helps you trace your success, performance or areas of improvement against the set target you’ve made in your business strategy. It can have these points or more:

• What is the vision and mission of the company?
• Who is your customer?
• What does your customer value?
• What products and services do you provide?
• Who do you have? Who do you need? How do you find more of the right people?
• Do you have the capital we need? How will you generate the profits you need?
• What are your short and long-term goals?

2. Choose Your Business Structure

When starting a business, make sure you are aware about the type of legal structure you want for your company. As this not only influences how much you pay in taxes, or the legal formalities you’ve to file for or take licences but the amount of investment you need to make or even the possibility of raising profit also depends on it. Here are few of the major business structure that you can choose from:

(a) Sole Proprietorship

The businesses which are owned by one person who runs the business on his own.

(b) Partnerships

It's a type of business where two or more people share the ownership of a single business along with how they’ll share the profits, liabilities and assets and how disputes, if any, will be resolved or how partnership will be dissolved as outlined by a legal document.

(b) Partnerships

It's a type of business where two or more people share the ownership of a single business along with how they’ll share the profits, liabilities and assets and how disputes, if any, will be resolved or how partnership will be dissolved as outlined by a legal document.

(c) Corporations

A business that is in the eyes of law is seen as a unique entity, separate from the people who own it. There are three types of corporations: C-corporation, S-corporation and Limited Liability Company.

C-corporation: it is taxed separately from its owners and allows a limited liability to the owners and thus more risk-taking and potential investment.

S-Corporation: Also known as subchapter S-corporation gives limited liability to the owners as it does not pay income taxes and the earnings and profits are treated as distributions. Shareholders involved in this corporation must report their income on their individual income tax returns.

(d) Limited Liability Company

This type of business is a mix of structure that provides the limited legal liability of a corporation along with the operational flexibility of a partnership or sole proprietorship. This requires you to file paperwork.

Remember whatever the business structure you decide to go for, always base your choices on three main factors: liability, taxation and record-keeping.

3. Analyze Your Potential Competitors

Familiarize yourself with the market you want to step in. A competitor analysis is important because it will not only ensure you can enhance your own business goal after considering market trends, help you identify how you can create a better business strategy than your competitors and much more. It can also provide you insights into your own best practices, business growth plan and its potential flaws thus a chance to outgrow not only your competitors but also your own goals. Ask these questions to narrow down your competitors:

• Who are your main competitors that can have a large influence on your business?
• Where are they in relation to you when you conduct a competitive analysis?
• What are their products or services? 
• Are they delivering more or less value to their customers compared with your offer and your deliverables?
• What is something good about their offer that you don’t have in your offer? 
• What is something bad about their offer that you can avoid offering? 

4. Identify Your Target Market

Like an effective business strategy  helps you stay on track of your success path, similarly identifying a target market helps employ better communication strategies either through products, marketing or services. Additionally, when you know who you are selling your product or services particularly, it helps you organize the group in a cost-effective and time-effective manner. So figure the gaps in the needs of your customers and fill it via in-depth market research or exploring industry trends, reviews. Ask questions like:

• What is your target demographic?
• Who is important to them?
• What challenges do they face?
• Can your service or product help them with these challenges?
• Who would pay for my product or service?
• How will you sell your product or service?

5. Finalize Business Name/Logo

Do you know Facebook was initially known as TheFacebook? But it lost “THE” and renamed itself to just Facebook. What do you think sounds catchier “TheFacebook” or “Facebook”? You have invested a lot in your business idea whether it’s money, time or efforts, however, if you can’t give it a name that not only distinguishes your business from others but also an image that is etched in the mind of your customers forever. Then what’s the point? So go for names that:

• Relates to your business messaging/branding
• Give insights into what your business does or sells
• Are scalable to suit your future growth plan
• Develop Your Visual Identity via Logos

6. Complete All the Legalities

• Registering your business with the appropriate government authorities
• Obtaining all the required permits and licenses
• Meeting all federal and state tax requirements, such as applying for state and federal tax ID numbers
• Ensuring your business name, services, or products are registered for Trademark so that your brand name is protected from getting copied or used without your authorization.

7. Buy a Insurance Cover

Insurance is one of the nicest things you could do for your small business other than getting online and branding it. This is something that acts like a safety net for your business amidst unforeseen circumstances. However, always ensure that not only you’re getting an insurance policy that suits your business but also something that you can afford.

• Business Income Insurance: This insurance covers physical property damages that leads to a decrease in output or a suspension of your standard services.
• Business Liability Insurance: This insurance covers your personal assets if you’re ever sued or face lawsuits.
• Business Owner’s Policy: It’s a mix of both property and general liability insurance. It is suitable for individuals who use their own space like their residence for work.
• Commercial Property Insurance: This covers any physical assets, commercial property that you own. But it gets costlier as you add more to the cover plan.
• Contractors Professional Liability Insurance: This insurance covers professional-oriented businesses such as engineering, architecture or subcontracting in case you face a lawsuit due to error or liability claims because of environmental impact.
• Cyber Insurance: This insurance covers the cost or liability related to a data breach, cyber-attack, theft, or any other internet-based risks.
• General Liability Insurance: This insurance covers liability related to suits or claims involving property damage, personal injuries or advertising offence.
• Workers' Compensation Insurance: This insurance covers your employees’ medical bills and lost wages due to on-the-job injuries or illnesses. This is a mandatory insurance type in every state except Texas.

8. Set Up Your Accounting System

This is one of the steps that you can’t take lightly as it is one of the essential ones. Yes, recording business transactions might seem like a herculean task but follow the below process to make your recordkeeping smooth and a worriless process:

(a) Select an accounting method

Here are the accounting methods you can choose from:

• Cash-basis: It’s quite an easy process where you record income when you receive payment. 
• Accrual: This accounting method requires deep knowledge and time as you record the income when your transaction takes place, with or without money.
• Modified cash-basis: This is a hybrid accounting method with both cash-basis and accrual where you record income when you receive it, and expense when you pay. 

(b) Decide How You Will Record Transactions

How do you plan on recording transactions in your books? Maybe you’re considering:

• Recording transactions by hand (e.g., spreadsheet)
• Hiring an accountant
• Using accounting software

(c) List All the Accounts 

Often called Chart of Accounts or COA where you make note of when the money is going into your business as well as all of the money going out. Generally COA has these 5 sections:

• Assets
• Liabilities
• Equity
• Revenues
• Expenses

(d) Open a Different Bank Account

You can’t have personal and business funds in the same bank account. To avoid circumstances of accounting blunders, inaccurate tax filings, and overspending, open a separate bank account for business and personal purposes.

To open a business bank account, you typically need the following information:

• Social Security number
• Employer Identification Number (EIN)
• Business name
• Business license
• Organizing documents (e.g., articles of organization)

(e) Determine the Payment Method

Be careful when you decide to choose your payment methods & policy and set clear, simple and comprehensible customer payment policy for your products or services. This may include:

• Cash
• Coupons/Gift Cards
• Credit card
• Mobile wallet payment
• Netbanking

(f) Track Your Expenses

Recording and tracking your expenses is crucial not just for accounting but also it helps you monitor any discrepancy during the transaction period. So make sure, you keep safe these:

• Receipts
• Bank and credit card statements
• Invoices
• Bills
• Canceled checks
• Proof of payments
• Previous tax returns
• Forms W-2, 1099-MISC, and 1099-NEC (in US only)

Keeping the records of your expenses gives your business and book a neat and clean image.

9. Design a Small Business Website Suiting Your Business

There are several website platforms that you can pick for your small business but you need to make a sound decision, considering your website is your first impression that you give to your potential customers. Based upon how your website looks and functions, they will form an opinion about your business, so ensure it’s a positive one. Design a small business website that:

• Simpler or Easier learning curve
• It is fast and secure
• Mobile-responsive
• Simple & intuitive to explore
• Persuasive Call to Action
• Cost-Effective Maintenance support
• High on Customization

10. Create Brand Strategy

Having a brand strategy is all about shaping your existing and potential customers’ perspective about your products, services and overall company image and that depends on how you communicate with them. Brand strategy isn’t a complex matter but is quite important as:

• It helps you in creating a different and distinct image than your competition and gives you visibility in the marketplace
• It’s the stepping stone to marketing strategy as it provides a clear purpose for how you can engage your customer and why you are doing so
• With consistent, clear and cohesive brand strategy you can attract new customers & retain loyal customers 
• It also gives your own employees a clear brand vision to ensure that everyone is working towards the same goals
• It increases your business value as a strongly established brand not only adds value to your brand for future revenue generation but it also makes you an attractive choice for investment opportunity

Wanna learn how you can position your brand well amongst your competitors? Ring JanBask Website Development Services to know the most cost-effective and compelling way!

11. Launch Your Small Business Online

Going online with your small business is not just about “designing a small business website that is a nice looking and working site with your business name, contact details, and some social media links.” It is more about giving your small business an online version that is easy to find and is with informative, highly functional, secured and responsive web design. So get a website designing company for your small business website that gives your visitors greater user experience and boost your conversion rate. After all, over 2.14 billion people globally are expected to buy goods and services online by 2021, while the global e-commerce market is expected to see a CAGR of 16% between 2021 to 2026. You shouldn’t be missing out on such great numbers!

Here’s the list of one of the seven popular online business to choose from:

• Freelancing: You can offer your service to other individuals and businesses using a skill that you have like content writing, designing or photography..
• A Consultant: Become a coach or a consultant and sell your expertise, advice, and guidance.
• Software as a Service (SaaS): Create a piece of software or application, and charge users a recurring subscription fee.
• App Developer or Builder: With knowledge of coding & basic elements of software design, build apps for businesses that need specific apps.
• Virtual Assistant:  Help businesses or entrepreneurs organize their personal or professional lives like setting appointments or  marketing management but virtually!
• Life Coach: Help people strike a balance between their personal and professional life. Aid your clients in making progress in their lives to attain greater fulfillment. 
• Ecommerce: Using platforms like Magento, Shopify or BigCommerce, set up a website and sell products online.

Hey, do you know by the year 2040, it’s estimated that 95% of all purchases will be through eCommerce? Willing to give it a go? Let’s get going with the best eCommerce website development services for launching a custom, creative and compelling eCommerce website.

12. Plan a Digital Marketing Strategy

A digital marketing plan just like branding is an essential element to attract more customers, convert leads into sales and for brand awareness via digital channels like search engines, email marketing, and social media. Other benefits include

• Interact with your prospects and learn exactly what they are looking for
• Reach a global marketplace instantly
• Cost-effective and makes quiet easy to reach more customers than traditional marketing methods
• Create brand loyalty by knowing your audience and letting them know you intimately
• Track what is working for you and what is not and improve based on it
• Evaluate your progress of your marketing efforts immediately

So what are you waiting for? Go on, take the plunge and start your entrepreneur journey with our effective steps on how to start a small business online. 

How much is it Cost to Get a Website Made by a Freelance Developer or DIY

Choose if: 

• You have the time and/or skills to develop a website by yourself, if not then the best option is to hire a professional web development company for the job. 
• You don’t want to pay too much due to limited resources but quality might be spoiled, find free platforms or with nominal fees for various elements like domain name, website platform, plugins etc
• You want deliverables in shorter turnaround times without making additional investments

What is the Cost of Hiring a Professional Web Development Company

Choose if:

• You’re looking for reliable long-term cooperation as from the consulting to the technical support of the project they are your partner in everything.
• You want access to an entire team of developers, designers, content writers, and marketers. So you won’t have to go and hire each one individually.
• You want seamless management and cooperation with the company that intends only to provide you professionalism, quality, and perfect production.

The typical cost of getting your website developed by a web development company will be: 

• Depending on the website features, functionalities, size, and including the cost of developers, designers, and writers, the cost of service, the research cost.
• Along with the cost of testing and changes, updates and maintenance cost, and most likely the cost of domain and hosting for the website. 
•  The cost of hiring a web development agency will be in the range of $1000 to $50,000+.

Moreover it’s not just about prior knowledge, money or even efforts involved when it comes to designing a custom web design for a small business. Because the costliest thing that you will invest in designing  a website for a small business is your brand image and how you want your prospects to see it. Affordable web design for small businesses just doesn’t mean you’ll compromise on quality. So, we recommend you go for a professional web development company rather than doing it yourself or hiring freelancers, especially if the quality of the website matters to you. After all, the business that you had finally established is the result of years or months of hard work and determination, so why let it bite dust over a few dollars. 

So choose wisely!

Still confused about how to have an affordable web design for small business or how much exactly it costs to develop or redevelop a website? Check out this blog to Know Everything About How Much it Costs to Develop & Redevelop a Website and have no doubts. Psst… you can thank us later!