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Steps To Starting Your Own Business

February 19, 2019 So, you’ve decided to start your own business. First of all, congrats on taking this exciting step! There’s never been a better time to be an entrepreneur (more women are creating businesses than ever before!), and you’ve got the potential to help improve not only your own financial life, but also to serve your local community and help it thrive.  Before you dive in, take a look at these steps to success. 

Step 1: Have a clear idea of what your business will be

Before you do anything else, you’ll want to make sure you do your research. Your company should solve a problem, fulfill a need or offer something that’s not already available in a particular category. Additionally, you’ll need to define your target customers. Try to figure out how you are different from your competitors and why your target customers would want to invest in your product or service. Through research (Google will be your new best friend!), you can gain insight into your potential competitors to explore how your business can stand out. This research step is essential to avoid creating a business that isn’t sustainable. In the end you’ll be grateful you spent the time finding a sweet spot in the market where your company can flourish. If you’re not sure where to start, take a look at this that will help you evaluate your business idea and determine your strengths as you begin.

Step 2: Build a business plan

Your business plan doesn’t have to be long. In fact, many people have found a simple one-page business plan will do the trick. Think of this as your guide for the first three to five years of your company. It should map out how you plan to start, any potential obstacles and steps you could take to overcome those obstacles. You’ll also want to include the strategy for your business that outlines your reasoning for everything from sourcing and staffing to how you’ll manage your money. Make sure to always have your plan on hand, so you can reference your strategy and tweak it as you go. Don’t be afraid to go too in-depth – this is essentially the most important step to planning a successful business! Need some inspiration to get started? Check out this simple .

Step 3: Plan your finances

Starting a business is a big investment, so it’s important to plan for it. Start by putting together a spreadsheet estimating all the one-time start-up costs, such as licenses, permits, legal fees, etc. You should also figure out how much money you’ll need to keep your business running for at least the first 12 months. Adding these two numbers will give you the full amount you’ll need for an initial investment. And it’s not a bad idea to save a little more than that amount, just in case. If you need help, check out all our .

Step 4: Make it happen (legally)

Once you’ve done all the necessary planning, it’s time to make it legal! For the majority of small businesses, making your company official is as easy as registering with state and local governments. In some cases, it’s not necessary to register at all, but keep in mind that if you don’t register your business, you run the risk of missing out on personal liability protection and both legal and tax benefits. After registering, you’ll need to obtain your Employer Identification Number (EIN) to pay federal taxes, and then you can hire employees, open a bank account and apply for business licenses and permits. Remember: Never lose sight of your plan and your new business will thrive! You might also be interested in Side hustles are trendy, but can you make good money in the gig economy? Get tips to ensure that your side hustle business is actually worth the time & effort. As a small business owner, you’re making all kinds of things happen every single day – from wrangling supplies to communicating with clients. But even the savviest of business managers encounter a cash flow issue once in a while. Here are a couple of tricks to help you master your cash flow. It’s time to turn that awesome business idea into action! Don’t get intimidated about launching your company. Instead follow these steps to success. Financing a small business can be tricky, even if you’ve been at it for a while. Along with day-to-day cash flow management, there are short-term challenges and long-term goals that demand your attention. So as a busier-than-ever business boss, how can you stay on top of your everyday duties while also taking steps toward your future goals?   Here are three tips to help you stay on top of your financial game and get you where you want to go. 1. Shop for the right financial partner Taking that first step and starting your business is intimidating, but it doesn’t have to be. Check out advice from our President and CEO Kim Sponem to get you ready for that leap. Featured Products Certificates Checking Accounts Home Equity Loans Home Loans Business Banking Certificates Checking Accounts Home Equity Loans Home Loans Business Banking Financial Education Upcoming Events Programs Tools & Calculators On-demand Webinars Podcasts Upcoming Events Programs Tools & Calculators On-demand Webinars Podcasts About Equity in Money™ About Summit Careers News Community Giving Equity in Money™ About Summit Careers News Community Giving Help & Support Contact Us Member Support Center Schedule an Appointment Find a Branch Contact Us Member Support Center Schedule an Appointment Find a Branch Please read the following before proceeding to: The website you are about to visit is solely the responsibility of the merchant or other party providing the site. The content of this third-party site, including materials and information, is solely the responsibility of the provider of the site. The Credit Union is not responsible for any such third-party content. Any transactions that you enter into with a vendor, merchant or other party that you access through this third-party site are solely between you and that vendor, merchant or other party. The Credit Union does not endorse the content contained in this third-party site, nor the organization publishing the site, and hereby disclaims any responsibility for such content. The Credit Union Privacy Policy does not apply to this third-party site, and for further information you should consult the privacy disclosures of the third-party site. NCUA Insurance Estimator Privacy, Security & Accessibility Rates, Fees, Terms & Disclosures Routing Number *  The Wisconsin's #1 Mortgage Lender designation is based on the number of loans in 2022, gathered from the Home Mortgage Disclosure Act data compiled annually by the Consumer Financial Protection Bureau. The results of the data were obtained through the LEI: 254900NTAC4H10MGSU23 **  SBA Lender of the Year Award for Credit Unions as awarded by the Small Business Administration of Wisconsin in 2023. Copyright 2024 © Summit Credit Union. All rights reserved. If you are using a screen reader and are having problems using this website, please call 608-243-5000 for assistance. Insured by NCUA