10 Steps on How to Start a Business (2023)

We can agree that starting a business is scary and very exciting! Congratulations, you’re an entrepreneur. The thought of naming a business and designing a logo are apparent. The less known steps on how to start a business are vital to a new business’s success. Most successful business millionaires know 10 things about starting a business and so should you. An entrepreneur who puts in the time and effort to establish a business will need to know how to start a business.

These are the 10 things most business millionaires know about how to start a business:

Content show

10 Steps on How to Start a Business (1)

Chapter 1: Market Research

Market research is key to knowing whether your business idea will succeed or not. It is an important step to starting a business, and one that many people skip. By doing market research, you can gauge the number of potential customers and the level of competition in that marketplace. You can also get an idea of pricing and therefore, profitability.

Market Research for Target Customers

Effective market research looks at economic trends and consumer behavior to see if your business idea is feasible. Understanding your consumer base from the outset is vital to running a strong business. It will reduce risks to your business from the outset.


To understand the scope of your consumer base and how to best market to them, gather demographic information such as age, family, interests, wealth, and other relevant information.


To see if there is room for your business, answer these questions:

  • Demand – Is there a need for your product or service?
  • Market size – How many people would be interested in your product or service?
  • Market saturation – How many competitors do you have? What do they do differently?
  • Location – How many customers can your business reach? Are you well located for your customer base?
  • Economic indicators – What are the employment rate and income of your customers?
  • Pricing – How much can you charge based on the pricing of similar products?


There are two options on how to conduct market research. You can use existing sources, or you can go straight to the source and ask consumers. Using existing sources will save you a lot of time and energy; however, the information will likely be general. It will be useful to get an idea of household incomes, demographics, and the overall industry. A good place to start is with the Small Business Administration, market research and competitive analysis.


Going directly to consumers will allow you to research specifics; however, it can often be time-consuming and expensive. This method is useful for business-specific questions such as impressions of your logo, or how to improve their buying experience. You can conduct direct research by:

  • Questionnaires
  • Surveys
  • Focus groups
  • In-depth interviews

10 Steps on How to Start a Business (2)

Analyze Competitive Market Advantage

Competitive analysis is important to ensure that you secure a chunk of the market share. Learn from your competitors and find ways to offer a superior product or service to give yourself a competitive edge.


Assess the following features of your competitors:

  • Their market share
  • What they do well
  • Where they can improve
  • Any opportunities where you can offer something unique
  • If they focus on your target market or not
  • Any barriers to entering the market
  • Other competitors who may affect on your success


The market you are targeting may be the focus of several industries, be aware of other industries that may affect your business. Consider the threat of new competitors, how customers and suppliers may affect price and the level of competition.

10 Steps on How to Start a Business (3)

Chapter 2: Business Plan

A business plan is the foundation of your business. It lays out how you plan to structure, grow, and run your business. It is also vital for securing the support of investors or collaborators.


| Business Plan Template

Writing a business plan gives an entrepreneur the foundation of how you plan to structure your business and will help you to decide later down the line. Most importantly, business plans are key for attracting funding and business partners in the infancy of your company. They will help investors to understand your plans for your business and see that they will get profit from their investment.

Do not obsess over the “right” business plan because there is not such thing as right or wrong. There are two basic types of business plans: the traditional business plan or lean startup.

Traditional business plans are common because it is easy to prepare. They have a standard structure and encourage detail in each section. Because traditional business plan are more detailed, it requires more efforts and are more pages. However, because traditional business plans are more comprehensive, investors and lenders tend to favor these types of business plans. Many business attorney in California can assist in writing a business plan or the SBA has business plan writing.

Lean startup business plans still use a standard structure, but they only contain the most important elements of the plan. They are typically one page long and can usually be completed in an hour. While these are acceptable, lenders and investors may require more information.

10 Steps on How to Start a Business (4)

(Video) 10 Steps to Starting a Business

Traditional Business Plan Format

If you are detail orientated and want a comprehensive plan or are seeking financing from traditional sources, you might prefer a traditional business plan format. You need not stick to the exact outline, as some sections may not be relevant to your business. However, most business plans will require a combination of these nine headings:

Executive Summary

Explain in short concise sentences what your company does and why it will succeed. You can include a mission statement, basic information about your product or service, location, employees, and leadership team. If you plan to use this business plan to ask for financing, include financial information and high-level growth plans.

Company Description

Provide a detailed description of your company. This should include information about the organization, consumers, or businesses that you plan to serve and which problems your company solves. Explain your competitive advantages and strengths.

Market Analysis

Summarize the information you found while doing your market research. Include facts about your target market and industry outlook. Explain how you can do things better than your competitors.

Organization and Management

Describe the company structure and who will run it and the legal structure of your business. Will you be an LLC, general or limited partnership, sole proprietor, or C or S corporation. Detail an organizational chart and the unique experience each person brings to the table. You can include resumes or CVs of key team members if you wish.

Service or Product Line

Describe in detail the product or service you sell. Give in-depth information about how it benefits customers and its life-cycle. Include information about intellectual property protection and explain the research and development you are doing for the service or product.

Marketing and Sales

Describe how you plan to attract and retain customers and the sales process. This section is important for financial projections and the cost of attracting each customer vs profit from each customer. Your marketing strategy will grow and evolve over time, but this is your initial marketing plan.

Funding Request

Outline your funding requirements if you plan on approaching an investor or lender. Explain how much funding you will need over five years and where the funding will be allocated.

Specify if you are requesting debt or equity, and the terms of either choice including the length of time. Include your future financial plans, whether that is selling your business or paying off debt.

Financial Projections

Financial projections will show that your business will be financially stable and successful. If your business is already established, including balance sheets, income statements, and cash flow statements for the last five years. Also include information about collateral you could use for a loan.

Detail your financial outlook for the next five years, including your budgets and projected financial statements. Be extremely specific for the projections for next year. Explain how you calculated your projections.

You can use graphs and charts to illustrate your projections and past finances.

Appendix

An appendix can include supporting documents or information requested by the lender or investor. You can include:

    • Licenses
    • Permits
    • Credit histories
    • Resumes
    • Product pictures
    • Letters of reference
    • Patents
    • Contracts
    • Legal documents

Lean Startup Format

If your business is simple or you want to start your business quickly, then a lean startup format may be best for you.

Lean startup formats use only the most important elements to describe your business and how it will run. Here are the main components of a lean startup format:

  • Key Partnerships. Explain the subcontractors, suppliers, manufacturers, and other businesses you plan to work with.
  • Key Activities. List the ways your business has a competitive advantage, such as technology or selling direct.
  • Key Resources. List the resources you will use to create value for your customers, such as capital, staff, or intellectual property. It can also include business resources such as those for minority businesses.
  • Value Proposition. Show the unique value your company brings to the market.
  • Customer Relationships. Describe what the customer experience will be like from start to finish and the methods that customers will use to interact with your business.
  • Customer Segments. Be specific about the demographic of your target market and what their spending habits are.
  • Channels. Use the mix of channels you will use to talk to your customers.
  • Cost Structure. Will your company focus on maximizing value or reducing costs to ensure profit. Detail any significant costs you will face in ensuring profitability.
  • Revenue Streams. Explain how your company will make money, such as membership fees, direct sales, and advertising space. List them all.

Chapter 3: Startup Money

The most important decision you will make as a business owner is how to fund your business. It could affect every other business decision for years.

10 Steps on How to Start a Business (5)

(Video) Watch this BEFORE You Launch | 10 Steps to Start a Business in 2022

Adequate Money

Your business will have unique funding needs depending on your vision for the business and your personal financial situation. Calculate how much funding you require for the first five years until your business is more stable and self-sufficient.

Self-Funding

This is where you use your own finances to fund your business. You could use your savings, tap into your 401k, or ask family or friends for money. This allows you to have complete control over your business but also means you take on all of the risks. If you choose to self-fund your business, it is important to be aware of your personal and business finances.

Money from Investors

Investors often offer venture capital to businesses in exchange for an ownership share and active role in the company. Venture capital often:

  • Focuses on high-growth companies
  • Takes higher risk in exchange for a potential of higher returns
  • Has a longer investment horizon than other types of financing
  • Invests capital in exchange for equity, it is not a loan


The majority of venture capitalists will want a seat on the board of directors and therefore influence in your business.

How to Get Investor Funding

There is no guarantee that you will be able to get venture capital, but here is the standard process of approaching an investor about it.

  1. Find an investor – You can look for venture capital firms or independent investors. Do your research to see if the investor has experience with startups and is reputable.
  2. Share your business plan – The investor will want to understand your business to see if it will be a profitable investment. Some investors may only focus on certain industries or stage of business development.
  3. Go through a due diligence review – The investors will look at your products and services, market, management team, financial statements, and corporate governance documents.
  4. Discuss the terms – If the investor decides they want to invest in your business, they will propose terms and conditions for you to negotiate.
  5. Investment – Once you have agreed to and signed the term sheet, you will get your money. Often there will be rounds of investments where you receive more money after hitting certain business milestones.

Crowdfunding

Crowd funders are not technically investors as they do not see a financial return on their money or own a share of the business. Instead, they receive a gift as thanks for the contribution. The gift may be one of your products or other perks like a credit.

Crowdfunding is a popular option as it is low risk, you receive full control of your company, and you don’t have to repay crowd funders if your business fails. Read the fine print on the crowdfunding platforms to understand the legal and financial obligations.

Small Business Loan

A small business loan will allow you to receive a chunk of money while still retaining control of your business. The finances are given in the form of debt with a set repayment schedule. The SBA CDC offers small business loan.

Before applying for a loan, create your financial projections for the next 5 years, an expense sheet, and your business plan. These documents will increase your chances of securing a loan. Contact banks and credit unions and compare the terms of the loans.

SBA Loan

If you are struggling to get a traditional loan, then an SBA-guaranteed loan might be a good option. The SBA guarantees your loan, so the bank has less risk in the deal. Lender Match has a list of lenders who offer SBA-guaranteed loans.

Small Business Administration Investment Programs

  • SBIC. The Small Business Administration regulates privately owned and managed investment funds which assist small businesses and startups with loans. These SBICs use their own capital, but the SBA guarantees the money for less risk.
  • SBIR Program. The program helps small business to do federal research and development with the potential for commercialization.
  • STTR Program. Small businesses in this program will work with nonprofit research institutions in return for capital.

Chapter 4: Business Location

No matter if you are starting an online business or a physical store, the location of your business can affect your taxes, expenses, revenue, and legal requirements. When choosing your business location, it is important to be strategic in the state, city, and neighborhood you pick.

When you register your business, you must purchase licenses and permits and pay taxes in that location. Aside from these considerations, some of the other factors you should consider are:

  • The location of your target market
  • Costs and benefits
  • Location of you and your business partners
  • Government agency restrictions
  • Personal preferences

Local Business Expenses

Research how different states and neighborhoods may increase your expenses. The following costs will vary considerably between locations:

  • Legal minimum wage
  • Rental prices
  • Utilities
  • Standard salaries
  • Insurance rates
  • Government licenses and fees

Zoning Laws

If you rent or buy a physical location for your business, it must be zoned for commercial use. Certain neighborhoods may be zoned as residential only or ban certain types of businesses from operating in the area.

If you run your business from home, zoning ordinances may still restrict your business operations. Check with your department of city planning to learn about the zoning laws in your area.

State and Local Taxes

Research the income tax, property tax, corporate tax, and sales tax when choosing a business location. Certain states are tax-friendly to different industries; for example, California is tax-friendly for tech startups.

State and Local Government Financial Incentives

Depending on your location, you may be eligible for state or local government tax credits, financial incentives, or loans. It is worth considering what financial incentives you may have for starting your business in a particular state or city.

Federal Government Financial Incentives

The federal government often offers incentives and benefits to small businesses operating in underutilized areas.

Chapter 5: Business Entity

The structure you choose for your business will affect your day to day operations, your personal assets, and your taxes. Choose a business structure that is right for your business.

Learn more:

  • Business Structure Chart: LLC vs Inc vs corp vs LP vs General Partnership vs Limited Partnership
  • Difference Between Corporation And Incorporation


You will need to choose your business structure before you register your business. You will also need to file for the appropriate licenses and permits and get a tax ID number.

Choose your business structure carefully. It is possible to change it at a later date, but it is very complex, and there may be tax consequences and other complications. The California Secretary of State is where to file business entity for new businesses.

Business attorneys and tax accountants can help you choose the correct business structure.

Sole proprietorship

A sole proprietorship is one of the easiest types of companies to form and allows you complete control of your business. Because this is not a separate business entity, your personal and business assets and liabilities are not separate. This means you can be held liable for the obligations and debts of the business.

As a sole proprietor, you can still use a trading name, but you cannot sell stock to raise money, and therefore banks are hesitant to lend money to a sole proprietorship.

This is a good option for those wanting to test a business idea before forming a formal business. It is also low-risk.

Partnership

Partnerships are a simple structure where two or more people own a business. They can take different forms, such as limited partnerships and limited liability partnerships.

Limited partnerships are where one partner has all the liability, and the other partners have limited liability. The partners with limited liability have limited control over the company in most cases, and the partnership agreement will define the roles. Profits are passed through personal tax returns, but the partner with unlimited liability must also pay self-employment taxes.

Limited liability partnerships give limited liability to every party. Each partner is protected from business debts and will not be personally responsible for other partners’ actions.

(Video) 10 Steps to Start a Commercial Cleaning Business | How to Start a Commercial Cleaning Business

A partnership is a good choice for a business with multiple owners like a professional group.

Limited Liability Company

A limited liability company gives the benefits of both the partnership and corporation business structure.

As a limited liability company, you and your assets are protected. If your business faces lawsuits or bankruptcy, you will not be liable.

Profits and losses can also go through your personal accounts without being subject to corporate taxes. As a member of an LLC, you will be considered self-employed for tax purposes.

LLC may be subject to restrictions in some states and be dissolved when a member leaves or joins and be reformed. LLC can be a good choice for owners with a lot of personal assets and those who want to pay a lower tax rate.

C Corporation

A C corp is a legal entity that is separate from its owners. The corporation acts like a person in terms of they can be held legally liable, make a profit, and be taxed.

Corporations are the business entity that offers the strongest protection from personal liability. They require more extensive reporting, operational processes, record keeping, and the cost is higher than other structures.

Corporations will pay income tax on their profits, unlike other business types. Sometimes the shareholders will be taxed on their personal tax returns too.

Corporations are independent of business owners or shareholders. If someone leaves the company or sells their shares, a C corporation can continue business as normal. They can also raise funds through selling stock.

S corporation

An S corporation is designed specially to avoid the double taxation that C corporations sometimes suffer. Profits and losses are able to be passed directly to the owner’s personal income without corporate taxation. In some states, this is not the case, and S corporations’ shareholders are taxed. Check the S corporation taxes for your state.

The process for registering as an S corporation is different, it must be registered with the IRS because of the tax benefits. There are also limits on the number of shareholders, and all shareholders must be US citizens. Like a C corporation there are also strict operational and filing processes.

B corporation

The B corporation, or benefit corporation are taxed similar to a C corporation. The B corporation is driven by a mission to do public good as well as profit. In some states, the B corp must submit annual reports of the public good they have done. The shareholders will also hold the owner responsible for producing social good.

Close corporation

Similar to a B corporation, the Close corporation has an nontraditional corporate structure. A board of directors is unnecessary, and the shares are usually prohibited from publicly trading. Rules vary from state to state about the requirements for a close corporation.

Nonprofit corporation

Nonprofit corporations serve the purpose of religious, literary, education, scientific, or charity work. They receive tax-exempt status because profits are not paid to members but held for future projects. They must file with the IRS to get their tax-exempt status.

Cooperative

This type of organization is owned and operated by those using its services. The earnings and profits are distributed amongst the members who hold shares. The amount of shares members have do not correlate with the weight of their vote. A cooperative will normally have a board of directors and officers who are elected by the members. The members will also have voting rights on important decisions.

Chapter 6: Register Business Name and Brand

You want to pick the perfect name for your business, one that reflects your brand and captures your spirit. It is also important to pick a name that hasn’t been used by someone else.

Creative market research will help when picking a name; you can run focus groups on the names you like best to see which one your target market connects with.

Once you have picked your business name, protect it by registering it. Once your business name is registered, no one can steal it. There are four different ways to register your business, depending on your location and business structure.

  • If you register an entity name, you are protected at a state level
  • If you register a trademark, it protects you at a federal level
  • If you register as a DBA, there is no legal protection, but it can be a legal requirement in some states
  • If you register a domain name, your website address is protected

These types of registrations are legally independent, and you may need to register multiple of these. Learn more:

Register Entity Name

If you choose to register your business as an entity name, it can protect your business name at a state level. Sometimes, your state may require you to register a legal entity name.


Each state has different rules about the use of company suffixes and what your entity name can be. If a name has been registered by someone else, most states won’t let you use it, and some states even require your name to indicate the type of business you run.


In most cases, however, registering an entity name prevents anyone else in the state from operating under the same name. How to Come Up with a Business Name: 11 Guidelines for Naming Small Businesses

Register Trademark

Trademarking your business name or the name of your products will protect you at a national level. It will prevent others in similar industries from using your trademarked names. It is important to check prospective names against the official trademark database to determine whether it has already been used before you pick a business name or name a product. Otherwise, you may be subject to costly trademark infringement lawsuits.

(Video) 10 Steps to Starting a Business

Register “Doing Business As” (aka: DBA)

This allows you to do business under a different name from your business entity or personal name. In some states, businesses are required to do so; in other states, it is optional. It provides no legal protection, so multiple businesses can use the same DBA within a state. Trademark infringement laws will still apply.

Website Domain Name

A domain name is your URL or website address. Once you register your domain name, it is taken off the market, and no one else will use it for as long as you own it. This allows you to protect your brand’s online presence. A domain name does not necessarily need to be the same as a business name, but it can be helpful for brand identity.

There are several domain registrar services with different price points and customer service records. You will need to renew your domain name on a regular basis.

Chapter 7: Register Business with Federal, State, and Local Government

Now that you’ve picked your business name and put it on hold, you need to register your business with the state and the federal government. Depending on your business type, you may need to use different methods to register your business.

Federal Agencies

In some cases, businesses need not register with the federal agencies and file for a federal tax ID is sufficient. However, tax-exempt status or trademark protection requires filing with government agencies.

State Agencies

If your business is formed as an LLC, partnership, corporation, or nonprofit, then you will need to register with your state. You need to register in the state where you will do busienss. This is defined by:

  • You have face to face meetings with clients in the state
  • Your business has a physical presence in the state
  • A large amount of your company’s revenue comes from the state
  • Some of your employees work in the state

Depending on the state you are registering with, you will need to either file electronically or through the mail.

Registered Agent for Service Process

For corporations, LLC, nonprofits, and partnerships, you will need a registered agent in your state. The registered agent will receive official papers and legal documents on behalf of your company and must be located in the state where you register. While it isn’t a requirement for other types of businesses, some business owners use a registered agent, so they need not do this work themselves.

Out of State Filings

If you conduct business in multiple states, then you may need to file for a foreign qualification in the other states. It is necessary to pay the State annual report fees and taxes in your state of formation and the foreign qualified states.

File a Certificate of Authority with the state you wish to foreign qualify for; this will charge a filing fee.

State Documents and Fees

The fees to register your business will vary in each state, but generally, it will be less than $300. You will need the following information to register your business:

  • Business name
  • Business location
  • Management structure, owners, and directors
  • Registered agent details
  • Number and value of shares

Depending on your business type, you may need the following documents:

  • Articles of Organization – This document is for LLCs and explains the basics of your business. It includes information like company address, name, registered agent, and the member names.
  • LLC Operating Agreement – This document describes the business structure for your LLC, including the functional and financial decisions. It explains how key business decisions will be made and the powers, responsibilities, and duties of each member. Even if this isn’t required, it is best to have one for your company records as they will be legally enforceable.
  • Certificate of Limited Partnership – This document is simple but contains the basic information of your partnership and notifies the state that the partnership exists.
  • Certificate of Limited Liability Partnership – Similar to the above, it contains the basic details of your limited liability partnership.
  • Limited Liability Partnership Agreement – It is an internal document that defines the powers, duties, and responsibilities of each partner and how business decisions will be made. Even if the state does not require it, it is important to have one as it is legally enforceable.
  • Articles of Incorporation – This is a comprehensive document that gives the basic outline of your business. Every state will require one.
  • Bylaws or Resolutions – These are corporate governance documents that lay out the powers, responsibilities, and duties of shareholders and officers. It also defines how business decisions will be made and is legally enforceable.

Register with Local Agencies

In most cases, you will not need to register with city or county governments to form your business. You may need to file for permits and licenses from the city or county though. In some places, you might need to register your DBA if you use one. In starting a business in Los Angeles, fictitious business name statements must be filed with the Registrar-Recorder/County Clerk’s Office.

Learn more on how to register a business name.

Stay Up To Date With Registration Requirements

Depending on your business structure, some states require you to provide reports and additional documentation. Check with your local tax office and state government to see what applies to your business.

Chapter 8: State and Federal Tax Identification

Your federal and state tax ID numbers are also known as Employer Identification Numbers or EINs. These are important to important business steps, like paying taxes and opening a bank account. In some states, you might need to get a tax ID as well as your EIN. Understanding business structure is critical to taxation.

Federal Tax ID Number

Your Employer Identification Number (“EIN”) is your federal tax ID, and you will use to it hire employees, open a bank account, apply for business permits and licenses, and pay federal taxes.

Applying for an EIN is free a the IRS website, and you should do it right after registering your business so you can finalize the rest of the business set up.

If you do any of the following, you will need an EIN:

  • Pay employees
  • File employment, firearms, alcohol, tobacco, or excise tax returns
  • Operate as a corporation of partnership
  • Use a Keogh tax-deferred pension plan
  • Work with certain types of organization
  • Withhold tax on non-wage income paid to a non-resident alien

Change or Replace Your EIN

If you have an EIN already, if you change certain things in your business you might have to change it.

If these changes occur, you might need to change your EIN depending on your state:

  • Name change
  • Change in ownership
  • Change in tax status
  • Address change
  • Change in management

State Tax ID number

If your business pays state taxes, then you will need a state tax ID number. If not, then you aren’t required to get one. Check on your state website to see if you need a state tax ID number.

Chapter 9: Business Licenses and Permits

Staying legally compliant will ensure your business runs smoothly and has limited disruptions to service. Most small businesses will need permits and licenses from the state or federal level. Check which agencies regulate your business. Each agency will have its own requirements and fees.


Here are some of the agencies you might need to register with:

  • Alcohol and Tobacco Tax and Trade Bureau. If you manufacture, import, sell, or wholesale alcoholic beverages.
  • Alcohol Beverage Control Board (State and City). If you manufacture, import, sell, or wholesale alcoholic beverages.
  • Federal Aviation Administration. If your business transports people or goods through air, operates aircraft or involves aircraft maintenance.
  • Bureau of Safety and Environmental Enforcement. If your business is involved in drilling for oil, natural gas, or other minerals on federal lands.
  • Nuclear Regulatory Commission. If your business produces commercial nuclear energy, is involved in the distribution and disposal of nuclear materials or is a fuel cycle facility.
  • Bureau of Alcohol, Tobacco, Firearms, and Explosives. If your business deals, imports, or manufactures any of those products.
  • Fish and Wildlife Service. If your business is involved in any activity with wildlife, including the export and import of wildlife and related products.
  • National Oceanic and Atmospheric Administration Fisheries Service. Businesses involved in any kind of commercial fishing.
  • Federal Maritime Commission. If you provide transport over the ocean or facilitate cargo shipping.
  • Federal Communications Commission. If your business broadcasts information via cable, wire, radio, satellite, or television.
  • Department of Transportation. If your business operates overweight or oversize vehicles.
  • US Department of Agriculture. For any companies transporting biotechnology, plants, animals, or animal products across state lines.

State Licenses and Permits

Depending on your business location and activities, the permits and licenses you need and their fees will vary. The states will regulate a broader range of activities than the states do, so it is important to check which permits you will need for both.

Licenses will expire after a set period of time, so be sure to keep track of when it is up for renewal.

Chapter 10: Business Bank Account for Business

A small business account makes it easy to separate your personal and business expenses and makes it easier to do your taxes. It will help protect your assets and ensure your business is legally compliant.


Common business accounts include:

  • Checking account
  • Credit card account
  • Savings account
  • Merchant services account

Once you have your federal EIN you can open a business bank account.


There are some perks that come with opening a business bank account vs a personal bank account.

  • Protection – Business banking offers some liability protection because your personal and business funds are separate. When you have a merchant services account, your customers’ private information is secure.
  • Professionalism – Customers will be able to make checks out to your business instead of directly to you. This means that employees can handle banking tasks without access to your personal accounts.
  • Preparedness – When you have a business bank account, you can have a line of credit for the company in case of emergency or new purchases.
  • Purchasing power – You can build a credit history and make large startup purchases with a business credit card account.

Fees and Good Benefits

Instead of just opening a business account at the same bank you use for personal banking, shop around to find the best benefits and lowest fees available.

Consider the following when opening a checking or savings account:

  • Interest rates for savings and checking
  • Introductory offers
  • Early termination fees
  • Transaction fees
  • Interest rates for lines of credit
  • Minimum account balance fees

When opening a merchant services account, consider the following:

  • Transaction fees: How much charged for credit card transaction s
  • Discount rate: The charge for each transaction processed (often as a percentage)
  • Monthly minimum fee: The fee if your business does not meet the minimum required transactions
  • ACH daily batch fees: The fee when you settle credit card transactions for the day
  • AVS fees – The fee for verifying customers addresses for transactions


A popular alternative to traditional merchant services accounts is payment processing companies. They can offer additional functions such as allowing you to use your phone to accept credit card payments. Look at the same fees as those for merchant services accounts. A payment processor will still need to be connected to a business checking account.

Necessary Documents to Open a Business Bank Account

Once you have picked your bank, opening a business bank account is easy. Go online or to a local bank to fill out the paperwork. Banks will often ask for the following information and documents:

  • EIN number
  • SSN if you are a sole proprietorship
  • Ownership agreements
  • Business license
  • Business formation documents

Some banks may require additional information, so check with them before you go into the branch.

FAQs

How do you start a business in 8 Simple Steps? ›

How to Start a Business in 8 Simple Steps
  1. Understand Your Time Commitment. ...
  2. Iron Out Your Idea. ...
  3. Do Your Market Research. ...
  4. Create a Memorable Business Name. ...
  5. Hire Legal and Accounting Help. ...
  6. Establish an Online Presence. ...
  7. Craft Your Business Model. ...
  8. Promote Your Business.
9 Dec 2021

What are the 9 steps to start a business? ›

9 Steps to Help You Start a Startup
  • Start with a Great Idea. ...
  • Make a Business Plan. ...
  • Secure Funding for Your Startup. ...
  • Surround Yourself With the Right People. ...
  • Make Sure You're Following All the Legal Steps. ...
  • Establish a Location (Physical and Online) ...
  • Develop a Marketing Plan. ...
  • Build a Customer Base.

What are the 12 steps to starting a business? ›

12 Steps to Starting a Small Business
  1. Step 2: Write a business plan. ...
  2. Step 3: Fund your business. ...
  3. Step 4: Determine your business structure. ...
  4. Step 5: Choose and register a business name. ...
  5. Step 6: Create a marketing plan. ...
  6. Step 7: Get a Tax Identification Number. ...
  7. Step 8: Open a business bank account. ...
  8. Step 9: Figure out your taxes.
2 May 2019

What are the 20 steps to starting a business? ›

Ready, Set, Startup Checklist: 20 Steps to Starting a New...
  1. Test your concept. ...
  2. Build a business plan. ...
  3. Work on your sales pitch. ...
  4. Find funding. ...
  5. Decide on a business structure. ...
  6. Get the right licenses and permits. ...
  7. Open a business bank account. ...
  8. Organize your accounting.
5 Apr 2021

How do I start my own business plan? ›

How to write a small startup business plan
  1. Clarify the startup vision, mission, and values. ...
  2. Outline the executive summary. ...
  3. Develop startup goals and milestones. ...
  4. Write a company description. ...
  5. Conduct market analysis. ...
  6. Develop startup partnerships and resources. ...
  7. Write a startup marketing plan and startup budget.
28 May 2022

What are the steps to a successful business? ›

Here are seven steps to putting your new business on the road to success.
  • Proceed methodically. Don't take excessive risks. ...
  • Plan effectively. ...
  • Define an effective value proposition. ...
  • Line up the right people. ...
  • Line up adequate financing in advance. ...
  • Find out what help is available. ...
  • Think long term.

What are the 7 steps to starting a business? ›

How to Start a Business in 7 Easy Steps
  1. Start with a Good Business Idea. If you're wondering how to start a business, it may be easier than you think. ...
  2. Conduct Research About Your Business Idea. ...
  3. Write a Business Plan. ...
  4. Make Your New Business Official. ...
  5. Know Your Finances. ...
  6. Protect Your Business. ...
  7. Build Your Business.

What are the 11 steps to create a startup company? ›

How to start a business in 11 steps
  • Discover your big idea.
  • Research your product and audience.
  • Calculate your startup costs.
  • Source products.
  • Figure out your shipping strategy.
  • Develop a brand strategy and brand identity.
  • Build and launch your website.
  • Register your business.
30 Sept 2022

What are the 7 steps to starting an online business? ›

7 Steps to Start Your Online Business
  1. Find Your Motivation. Before venturing into any business, take a moment or two and question your true motivation. ...
  2. Develop An Idea. ...
  3. Do Your Research. ...
  4. Craft A Business Plan. ...
  5. Determine A Corporate Identity. ...
  6. Build A Reliable Team. ...
  7. Just Keep Working.
22 Jun 2018

What are the 4 ways to start a business? ›

4 Ways to Start a Business
  • Independently Sell for a Brand.
  • Freelance or Consult.
  • Franchise.
  • Start a Service Business in Your Community.
17 Jan 2022

What are the 8 steps of a business plan? ›

8 Steps to Writing a Successful Business Plan
  • Write an executive summary. ...
  • Include a company description. ...
  • Add a market analysis. ...
  • Describe your offerings and value propositions. ...
  • Outline your marketing and sales strategy. ...
  • Compile your financials. ...
  • Spell out your goals. ...
  • Consider adding an appendix.
15 Dec 2020

What are the six steps to starting a small business? ›

Here are six steps to get you started.
  1. Have a plan. First, create a written plan. ...
  2. Be prepared to fail. You will encounter challenges as you start and grow your idea. ...
  3. Do your research. It's always a good idea to know your competition. ...
  4. Get feedback. ...
  5. Have an online presence. ...
  6. Find your market.
19 Mar 2020

What are the 13 tips for successful business? ›

13 Ways to Improve the Success of Your Small Business
  • Create brand personality. ...
  • Develop a strategic business plan, organizational structure, and operational support systems. ...
  • Avoid common mistakes. ...
  • Become connected to the community. ...
  • Put your employees first. ...
  • Don't just acquire customers, retain them. ...
  • Get organized.
2 Dec 2019

What are 10 small businesses? ›

Here are 20 small business ideas tailored to 2023.
  • Home improvement services. In 2020, the real estate market saw its highest pace of growth since 2005. ...
  • Cleaning services. ...
  • Tutoring services. ...
  • Personal training and fitness instructors. ...
  • Delivery services. ...
  • Baby supplies. ...
  • Pet store. ...
  • Digital marketing services.
16 Nov 2022

What is the most important step in starting a business? ›

One of the most important steps when starting a business is separating your business and personal finances. A business bank account lets you clearly see the income and expenses related to your business and helps you stay legally protected.

What are the 13 things list that a business plan should have? ›

As is the case with most big projects, crafting a business plan is one of those things that takes an incredible amount of diligence and no shortage of courage.
...
  • Executive Summary. ...
  • Company Synopsis. ...
  • Market Overview. ...
  • Product (How it Works) ...
  • Revenue Model. ...
  • Operating Model. ...
  • Competitive Analysis. ...
  • Customer Definition.

What is a good business plan? ›

A good business plan guides you through each stage of starting and managing your business. You'll use your business plan as a roadmap for how to structure, run, and grow your new business. It's a way to think through the key elements of your business.

What is a basic business plan? ›

A business plan is a document describing a company's core business activities and how it plans to achieve its goals. Startup companies use business plans to get off the ground and attract outside investors.

What are the 10 steps to success? ›

Tips for how to become successful
  1. Be committed. Through commitment, you can gain motivation to pursue success. ...
  2. Learn from the journey. ...
  3. Have fun along the way. ...
  4. Think positively. ...
  5. Change your perspective. ...
  6. Be honest with yourself. ...
  7. Take away distractions. ...
  8. Count on yourself.

What are the top 10 successful businesses? ›

While income can range, we've also provided an average salary to expect based on data from sites like PayScale, ZipRecruiter, and more.
  • Social media management. ...
  • Cleaning service. ...
  • Business consulting. ...
  • Copywriting. ...
  • Graphic design. ...
  • Real estate brokers. ...
  • Online courses. ...
  • Pet services.
4 Mar 2022

What are the 12 steps to success? ›

12 Steps to Achieve Success in Anything
  • Have a Desire: What Do You Really Want?
  • Believe That Your Goal is Achievable.
  • Write Your Goal Down.
  • Determine Your Starting Point.
  • Determine Why You Want It.
  • Set a Deadline.
  • Identify the Obstacles in Your Way.
  • Determine the Additional Knowledge and Skills You Need.

What are the 3 steps in business? ›

3 Stages of Business Growth and How to Navigate Them
  • Business Growth Stage #1: Emergence. The Situation. It's the early days of a brand's development. ...
  • Business Growth Stage #2: Expansion. The Situation. ...
  • Business Growth Stage #3: Maturity. The Situation.

What are the 11 elements of a business plan? ›

11 Key Elements of a Good Business Plan
  • Measure a business plan by the decisions it causes. ...
  • Concrete specifics. ...
  • Cash flow. ...
  • Short, sweet, easy-to-read summaries of strategy and tactics. ...
  • Alignment of strategy and tactics. ...
  • Covers the event-specific, objective-specific bases. ...
  • Easy in, easy out. ...
  • As lean as possible.

What are the 7 types of business plan? ›

Types of business plans include, but are not limited to, start-up, internal, strategic, feasibility, operations and growth plans.
  • Start-Up Business Plans. ...
  • Internal Business Plans. ...
  • Strategic Business Plans. ...
  • Feasibility Business Plans. ...
  • Operations Business Plans. ...
  • Growth Business Plans.

What are the 6 most important parts of a business plan? ›

6 essential elements of a good business plan
  • Executive summary. ...
  • Description and bios of your leadership/executive team. ...
  • Description of your product(s) or service(s) ...
  • Market/competitive analysis. ...
  • Financials (how much cash you need and when you'll pay it back) ...
  • Marketing plan.
20 Oct 2016

How do I start my own business as a beginner? ›

9 steps to starting your own business
  1. Register business name. ...
  2. Choose a legal structure. ...
  3. Write your new business plan. ...
  4. Secure funding and finance. ...
  5. Plan your advertising strategy. ...
  6. Buy your new business insurance. ...
  7. Work out what you need to do for tax. ...
  8. Create a system for keeping business records.
11 Mar 2022

What are the 5 steps needed before opening your own business? ›

Take the first steps toward turning your idea into a business.
  • Find Startup Costs.
  • Research Your Market.
  • Make a Business Plan.
  • Licenses & Permits.
  • Government Grants.

What are the 7 steps in developing a business model? ›

7 Steps for Establishing the Right Business Model
  • Size the value of your solution in the target segment. ...
  • Confirm that your product or service solves the problem. ...
  • Test your channel and support strategy. ...
  • Talk to industry experts and investors. ...
  • Plan and execute a pilot or local rollout.
30 Jan 2015

How do I start a small business with no experience? ›

Here are a few quick tips to help you can launch a business with zero experience and no money:
  1. Start a business based on what you know.
  2. Avoid irrelevant expenses.
  3. Take advantage of free marketing.
  4. Be willing to put in the hours.
  5. Spread the word.
13 Sept 2017

How can I start my own business with small amount? ›

Below, we include the absolute best ideas for you to start your small business — with resources and examples to help you get started.
...
Best Small Business Ideas
  1. Handyman. ...
  2. Woodworker. ...
  3. Online Dating Consultant. ...
  4. Sewing and Alteration Specialist. ...
  5. Freelance Developer. ...
  6. Personal Trainer. ...
  7. Freelance Graphic Designer.
21 Oct 2022

How can I be successful in business? ›

Here's what they shared.
  1. Willingness to take chances. Business owners who are willing to take chances tend to achieve more than those who play it safe. ...
  2. Unique value. ...
  3. Tenacity. ...
  4. Customer-centric approach. ...
  5. Good marketing. ...
  6. Strong vision. ...
  7. Passionate leaders. ...
  8. Empowered employees.
2 Feb 2021

What is the main thing to start a business? ›

Experts say some good first steps in starting a business are researching competitors, assessing the legal aspects of your industry, considering your personal and business finances, getting realistic about the risk involved, understanding timing, and hiring help.

What are the 3 most important things in business? ›

No matter how bold or ambitious your plans are to grow your business, the key to your business's success lies in three critical, interdependent components: operational excellence, customer relations/communications and financial management.

What are the 6 factors to consider when starting a small business? ›

6 things to consider before starting a business
  • Turn your idea into a plan. Every entrepreneurial journey starts with an idea. ...
  • Self-discipline. ...
  • Be flexible. ...
  • Follow your passion. ...
  • Listen to the pros. ...
  • Find a nurturing environment for entrepreneurs.
22 Sept 2017

Videos

1. 10 Steps: How to Start a Business for Beginners
(Carla Collado)
2. 10 Steps to Start Your Own Business
(Outright)
3. 10 Steps to Starting a Business: Step 1: Write a Business Plan
(Andrew Funk)
4. 10 STEPS TO STARTING A BUSINESS | HOW TO START A BUSINESS IN 2022 | HOW TO LAUNCH A BOUTIQUE
(The Brand Hustler)
5. 10 Steps How To Start A Business
(TheBloomingMan)
6. HOW TO START A BUSINESS IN 10 STEPS (Step-by-Step Guide)
(Samantha Dika)
Top Articles
Latest Posts
Article information

Author: Jamar Nader

Last Updated: 12/20/2022

Views: 5929

Rating: 4.4 / 5 (75 voted)

Reviews: 90% of readers found this page helpful

Author information

Name: Jamar Nader

Birthday: 1995-02-28

Address: Apt. 536 6162 Reichel Greens, Port Zackaryside, CT 22682-9804

Phone: +9958384818317

Job: IT Representative

Hobby: Scrapbooking, Hiking, Hunting, Kite flying, Blacksmithing, Video gaming, Foraging

Introduction: My name is Jamar Nader, I am a fine, shiny, colorful, bright, nice, perfect, curious person who loves writing and wants to share my knowledge and understanding with you.