Texas Border Business
By Pamela Kaur
You have an idea, what comes next? Are there others doing the same thing? What will make you different? Why should someone buy from you and not someone else?
Determine the type of entity you will create. Do you need an LLC or sole proprietorship? Each impacts your taxes and legal liabilities differently. Many small businesses start as a sole proprietorship as it is the easiest.
You will also need a business bank account. Find a bank or credit union with the cheapest fees and that can provide potential funding if needed.
Locate an insurance agent with experience in small business who can provide the type of liability coverage you require. If you need liability coverage, you probably need an LLC.
Find a small business accountant experienced in tax filings, deductions before and during the startup phase, creating financial records and more. They can also help in developing a cash flow analysis to determine if you have enough revenue to support your business.
Create a logo. An investment well worth making. It will help you stand out among your competitors.
Do you need a website? Will you interact with your customers and prospects via a website? If so, it needs to look professional and create a positive user experience. Work with a web designer.
Social media is one of the most critical marketing tools for today’s businesses. Identify which social media channels are most important to your customers. If you’re running a brick and mortar storefront you may have different technology needs than if you’re running the same business online or from home. Limit the channels you use initially to no more than one or two.
Payroll is important if you’ll have an employee on day one. Payroll providers are usually affordable and pay for themselves with the peace of mind you’ll gain by knowing your employees are getting paid on time and your payroll taxes are being deducted and filed correctly.
And finally, you will need to create a business plan. If you’re seeking startup capital you will need a through business plan with financials to present to a bank or private investor. If you’re not seeking funding, a business plan is still a valuable exercise, but it can be much shorter.
There is a lot to do and consider as you as you take the first steps toward launching your business. So a final word of advice. Your business is more likely to be successful if you DON’T TRY TO GO IT ALONE. Use support systems, reach out to potential mentors.
Work with your SCORE mentor. We provide free mentoring, workshops and webinars.
Today’s question was answered by our guest writer Pete Carvell, a SCORE mentor and past District Director.
If you’d like a free business mentor, reach out to Pamela Kaur @ pamela.kaur@scorevolunteer.org for more information.
Pamela Kaur is also a SCORE mentor and Asst District Director.
