How to start a small business

Ericka Stamps, Team Member|February 3, 2023

Starting a business can be complicated but also easy if you have a plan. There are multiple steps to starting a small business and making it successful. There are 5 steps to starting a small business.

Step 1- Figuring out what you want your business to be.

Finding out what you want your business to be, can be based on what you are good at and what your passion is. When you are picking a business, it is important to think about your personal skills and what will make you happy and what will get you the most money. You can also think about how much time and money you want to put into your small business as well.

Step 2- Writing out a business plan

Once you have your idea for your business, it will be time to write out a plan of what it will be and how you will manage it. A strong business plan can help you prepare for every aspect of your business. The write-out should include details of the products or services you plan to offer, and how you plan to make money.

Step 3- Register your business

Making sure you have fulfilled all legal requirements for new enterprises is the next step you have to take in order to start a small business. Although some of these requirements will be unique to your location and industry, overall, you’ll want to think about:

Registering your business name
Choosing a legal structure for your business
Registering for federal, state and local taxes
Getting any necessary business licenses or permits

Step 4- Get certified as a minority-owned business

Once you have gotten the required business licenses and permits, you’ll want to consider getting a minority-owned business certification. Although this certification isn’t required for you to start your business, it can be extremely helpful as you get set up, as well as provide opportunities for your business down the road. A minority-owned certification business can help you qualify for some government benefits, gain access to minority business grants, apply for and receive government contracts and help you become a supplier for large companies.

Step 5- Find financing for your business

here are a variety of ways you can fund your business, from traditional debt-based financing to equity financing, to more creative methods, like crowdfunding or working with friends and family. Although there isn’t a particular lender you can go to that exclusively offers minority business loans, there are federal, state, local and private loan programs tailored to address some of the challenges that minority small business owners often face.

Having a business can come in handy most of the time. Here are some ideas for a small business: