Business Startup Checklist: Unique things to know before Starting a business

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Starting your own business may seem to be a hard nut to crack but the very truth is that it’s not. 

Frankly speaking, you’re going to have to work hard, and give yourself to working on it on a daily basis and at all hours, but really getting set up is simply down to ensuring you’ve “checked all the boxes,” which is exactly what this business startup checklist is aimed at helping you do.

Here in this article, we’ve taken time to break the tasks expected down into categories, Manageable enough and have made resources that will be of huge help to in the completion of each stage of kicking off. 

Business Startup Checklist

A business startup checklist is a compilation of the steps you have to take to get a new business started. Therein is what you should do first, the next and the rest of the things to do. A business startup checklist tells you the steps you need to take to launch your business and the right approach to go. 

The business startup checklist is aimed at reminding you of the tasks you may have to carry out when starting your business and include items that are applicable to many different types of startups.  

Many of the said tasks need to be done for legal reasons even if you are starting a business with little or no money. 

How do I start a startup checklist?

There is a list of things needed to start a business and they include the following: 

  • Select a Name and Legal Structure 
  • Write a Business Plan 
  • Get a Federal Employer Identification Number (FEIN) for your Business. 
  • Open the Company Bank Account 
  • Obtain Licenses and Permits 
  • Create an Accounting and Record-Keeping System 
  • Obtain Business Insurance 
  • Systemize and Organize 
  • Develop a Business Identity 

  1. Find a good business idea
    What determines a good business idea isn’t just the profit turnover rather taking a business that is a good fit for you on a personal note, for your target market, and for your location. 
    Being that you are going to be in business for the long haul, it is very expedient for you to select something you can live and breathe while solving a problem.

    To find a good business idea, you are to do the following: 
    · Identify your strengths and weaknesses 
    · Analyze yourself based on the acronym, SWOT  
    · Come up with a business idea that provides anything required or desired to your strengths
    · Have your investment plan 
    · Give success a definition regarding your person. 
    · Carry out your research: What are popular businesses today?
  2. Select a Name and Legal Structure
    Selecting a name and legal structure is among the base of starting a company and in doing this, you basically have 4 choices to make and they include: 
    · Sole Proprietorship 
    · Partnership 
    · Limited Liability Company (LLC)
    · Corporation or S-Corporation
  3.  Write a Business Plan
    A business plan is a formal written document bearing the goals of a business, the methods for the attainment of those goals, and the time-frame for their achievement. In addition, it is a description of the nature of the business, background information on the organization, the organization’s financial projections, and the strategies it intends to implement for the achievement of the stated targets. If you don’t have a business plan yet, it is very expedient for you to prepare one, at least a preliminary business plan.
  4. Get a Federal Employer Identification Number (FEIN) for your Business
    In starting a company, you are to note that if you are set up as a Corporation, LLC or Partnership (or a sole proprietorship with employees), application for a Federal Employer Identification Number (FEIN) from the IRS is required. The number will be required to open a bank account or process payroll.
  5. Open the Company Bank Account
    Opening a Company Bank Account is among the business startup checklist and to do this, you have to select a bank and open the company bank account. It is needful to know the specific requirements to meet in order to open a business checking account hence you need to contact the bank you intend opening the account with prior to that time. This act is needful because some banks’ requirements are fairly simple whereas some others are highly complex.  
  6. Obtain Licenses and Permit
    1. Federal Permits
      In starting a company, obtaining licenses and permits is required of you.  Depending on the type of business you intend running, obtaining a Federal license or permit may be required of you. Federal license or permit is not required for running most businesses however, if your business is under one of the following activities, you should contact the Federal agency responsible for making findings on the requirements for doing business
    2. State Licenses
      A state license or permit is required for the some occupations and professions.  There’s variation of law from State to State, be that as it may, if you are engaged in one of the under listed professions, you should reach out to the state agency that is responsible for the determination of the requirements for your business: 
      • Insurance carriers 
      • Building contractors 
      • Banks 
      • Physicians 
      • Appraisers 
      • Accountants 
      • Barbers 
      • Real estate agents 
      • Auctioneers 
      • Private investigators 
      • Private security guards 
      • Funeral directors 
      • Bill collectors 
      • Cosmetologists 

        Licenses and Permits based for State based on products sold. The basis of some state licensing requirements is the product sold.  You are to contact your state licensing authorities to determine the licensing requirements that your business needs.  
        For instance, most states require special licenses to sell: 
      •  Liquor 
      • Lottery tickets 
      • Gasoline 
      • Firearms 
    3. Sales Tax Permit
      If your establishment sells physical products within the state where it does business, there might be need for you to collect and pay sales tax. This is commonly accomplished by obtaining a State Seller’s Permit or Resale Permit. 
      Note: Many service businesses that do not deal on physical, tangible products are NOT required to collect sales tax. The State taxation agency is always available for details/clarification. So, don’t hesitate to reach out to them in case you have any challenge. 
    4. Business License
      Not minding whether you are operating in Cities or Counties, you are required to obtain a business license, even if you operate a home-based business.  The said license is one that grants the company the authority to do business in that city/county.
  7. Hire Employees (if applicable)
    If your intention is to hire yourself or others as a full or part-time employee of your establishment, then you may have to register with the appropriate State Agencies or obtain Compensation Insurance for Workers or Unemployment Insurance (or the two). 
  8. Create an Accounting and Record-Keeping System for your business
    Setting up your Accounting and Record-keeping system is among the business startup checklist. Doing this teaches you about the taxes your new company is responsible for its payment. 
    In setting up an accounting and record-keeping system, the documents of an establishment often are required to be kept for three years. All tax and corporate filings should be kept for at a minimum of 3 years. 
  9. Obtain Business Insurance
    Obtaining business insurance is among what you need to start a business. Many types of insurance for businesses exist but they are generally packaged as “General Business Insurance” or a “Business Owner’s Policy”.  This can cater for everything from product liability to company vehicles. A decent policy can run as little as $300 per year and offers a great extra level of protection.
  10. Systemize and Organize
    In systemization and organization of your business, it deals with the preparation of the business as if someone needed to take charge of it and run it for you. 
    This means that you systemized method of processing orders, paying bills, paying employees, paying taxes, maintaining your permits, etc.  Fundamentally, endeavor to make the operational aspect of the business very much automated and efficient as much as you can so you focus can be on growing your business. 
  11. Develop a Business Identity
    Developing a business identity is among the business startup checklist and had to do with ordering business cards, letterhead and promotional materials for your business.  With having a professionally created logo, you are sure of your business looking professional and established.
  12. Get the Word Out (Marketing)
    Getting the word out is among the small business startup checklist. After setting up the business for success, the next thing you have to do is to get the word out.  You do this by creating a marketing plan for your products and services that has your ideal customers as targets in mind. 

Frequently Asked Questions (FAQs)

What are the four elements involved in every business? 

The four elements involved in every business include: 

· executive summary

· marketing plan

· key management bios, and  

· financial plan 

What is a Business Startup Checklist? 
A business startup checklist is a compilation of the steps you have to take to get a new business started.  

What is the initial step in starting business? 

The initial step in starting business is re-searching on the business.

Conclusion

It is very needful for you to have a business startup checklist and to follow it conscientiously. With that, you are sure to start your business the right way and to succeed at it. 

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