Starting your own business is exciting, but it can be overwhelming if you don’t know where to start. Here are some simple and practical steps to get you going.
Dream Big
If you had all the resources in the world to pursue whatever fires you up, what would you do? Dream big! Dreaming doesn’t cost a thing. We’ll consider the actual costs in just a bit.
Think about these questions: What would you do? Who would you serve? What will you sell? Where would you be?
Do the Research
It’s important to research the industry you are entering. This doesn’t have to be complicated. Books and YouTube are great resources! What skills do you need? What tools are required? Do you need a license or certificate to perform the work? Where will you get your inventory? How much will it cost?
Don’t be shy about reaching out to other business owners. Offer to buy them coffee in exchange for a moment of their time. Get connected! Get inspired! There is a lot to learn.
Get a Business License
Become too legit to quit. A simple sole proprietorship is a great way to start for most people. Remember, you are a startup! It’s going to be trial and error for a while. Success will come, and the need for limited liability will follow. See the full list of business entities below and read posts on the different types of entities. You can use local professionals to help you with your business formation and licensing. Services like LegalZoom are great for outsourcing this process as well. Or, see my list of recommended professionals below.
Get Social
Here is a step almost everyone will love: set up all your social media accounts—Instagram, Facebook, X, YouTube. Snag the handles and names before they’re taken. Post and have fun with it!
Keep Track! Keep Them Separate.
Before you start, separate your business and personal finances. Absolutely no commingling. Commingling makes things difficult for both you and your accountant. Get a separate business checking and savings account.
No matter how slow or busy your business is, keep track of revenue and expenses. The numbers give you key insights into the health of your business. Based on your bottom line, which means net income, you may need to make adjustments, and that’s okay.
Plan for Growth
Save, save, save! Once you start bringing in the bacon, don’t be tempted to eat it all! Reinvest in your business. You are inevitably going to grow, or you may need the funds during a short season of drought. How much should you save? Enough to cover the cost of 3-6 months of business expenses. The worst-case scenario is that business is slow and there isn’t enough to cover the costs. Once you have that covered, start saving for expansion. This could be for new equipment, training, or a dream location to lease. My personal conviction is to move at the speed of cash. We save intentionally to pay for new things all at once.
Other Resources
There are plenty of great programs available for entrepreneurs; you just have to look. Explore programs at your local colleges and universities. There are plenty of pro bono programs to help you with planning, research, marketing, and finance. In our community, Stockton, CA, the local university, the University of the Pacific, has a program called Pacific Consultants. They help with marketing and research.
The local coffee shop, The Well, in Stockton, CA, offers an entrepreneur boot camp. Here, they provide free training and education by UOP business professors, along with logos and marketing—a $3,200 value at no cost. At the end of the program, you can enter a Shark Tank-style competition for a chance to win a $10k startup fund.
Give, Give, Give
Be generous. The more you give, the more you get. There is a quote that says “Don’t dig a well when you need water”. In other words, don’t wait until you need help to build relationships. Support others in need now, and one day, you may find yourself receiving the same or even greater support.
