Steps to take BEFORE starting a business.
The internet is full of information and resources giving you insight on what to do once you’ve started a business. Get an accounting system. Make sure you have contracts with…everyone. Protect your intellectual property. But what about that moment of time before you actually launch? What steps should you take before you even “start?” Glad you asked :)
Before the logo, before you form the LLC, before you sell your first product, there’s a TON of background work and research that should go down. Let’s run through some of them. (You can find a full New Business Checklist created by me HERE, and it’s free!)
1. SEARCH YOUR NAME
The internet is your best friend here. If you’ve thought of the business name you want to attach to your future enterprise, pop it in Google and see what comes up. You may find some close matches that will take you back to the drawing board with biz names. But that’s always better than finding out further down the line when you’ve already invested significant amounts of $$ in that name.
2. MARKET RESEARCH
Do people want your good/service? Do they need it? How much are your competitors charging? Where do your future clients typically search for these goods/services? You’ll need an idea of what others are doing in the market. Not for copying or negative comparisons, but purely for research and informational purposes. If this is your first time running this type of business, you want all the insider info you can get! I recommend reaching out to a competitor (maybe in another state) to see if they’re willing to chat. You’d be surprised at how many are interested in helping those that come after them!
3. CREATE A BUDGET AND LIST OF EXPENSES
Make a list of every single thing you’ll need to purchase in order to run the business. Software, packaging, contractors, courses, all of it. Maybe this even involves two lists - a practical list of what you’ll need and a “wish” list of what you want once you’re more established. This can be super overwhelming. Once you see the list of what it’s going to cost to start/run/maintain this business, you may run the other way. Don’t! It just means you’ll also be incredibly prepared. If you fail to plan, you plan to fail. Not all of the items on the list will be possible for you in the beginning, but at least you’ll know what to expect down the line. This helps with revenue projections, financial goals and the overall continued well-being of your company.
4. THINK ABOUT YOUR CUSTOMER EXPERIENCE
I love this one! Pretend you’re a future customer/client. List out your entire experience from how this client finds your business and how they contact you, to how they purchase your products or services. You’ll find that there are soooo many steps to getting someone from not knowing you to handing over their credit card. As you write this list, think of the tools you’ll need. Social media pages for advertising. A website for a deeper dive. A payment processor for collecting payments. By the end, you’ll literally have a roadmap of your customer experience, which is truly invaluable.
5. LICENSES, INSURANCE, SALES TAX, ETC.
You might need some help for this one. Certain businesses are required to have a license to operate, charge sales tax, carry specific types of insurance, etc. It would be a fantastic investment to hire an accountant/lawyer/consultant that specifically works with business owners in your industry. They can walk you through the requirements you need to ensure you’re compliant. For example, here in New York, estheticians are required to be licensed estheticians AND their business is also required to have an additional license called the “Appearance Enhancement License” - many don’t know that!
Arm yourself with the tools, my friend! It’s a lot to grasp but trust me - you’ll be happy you did once you finally feel ready to launch. Good luck!!