How to Start a Small Business: Must-Have Checklist to Spark Success

If you’re reading this page, you’ve probably got an idea of what you want your business to be. Whatever your great business idea is, you can improve your chances of success if you take the time to map out its creation step by step. Here you’ll find resources and articles to help walk you through building your business—from the idea phase to hiring employees and filing taxes.

So many people have great ideas. But, they never take the time to find out if these ideas have the potential to become businesses.

• Most Successful Small Business Ideas in 2022
• How to Turn Your Hobby Into Income
• 6 Top Low-cost Startup Ideas
• The Complete Guide To Starting An Online Business
• How to Start a Dropshipping Business
• How to Start a Consulting Business

Before you get invested in your idea financially and emotionally, you must find out if there are buyers for your product. Are you providing a service that is in demand? Is this service viable financially? Do you have a way of accessing your customers?

• Breaking Down Business Startup Costs
• 5 Essentials to Know Before Marketing Your Startup
• What You Need to Know to Start Selling Products
• What is the 4P Marketing Matrix?
• 4Cs Marketing Model & Why It’s Good for Business

Most experts recommend that new entrepreneurs create a business plan—but what is a business plan, exactly? And do you really need one?

Although writing a business plan isn’t a surefire path to success, studies show that people who create business plans tend to also become successful entrepreneurs, so it can’t hurt. 

Our advice? Whether you write a formal business plan, construct a mental plan, or discuss a plan with a partner, make an effort to create a business plan.

• 8 Best Business Plan Software and Tools 2022
• Best Business Name Generators of 2023

Every entrepreneur must decide how to structure their business for several reasons. What you choose affects your liability and taxes, as well as which laws and regulations you’re subject to.

There are many business legal structures. But which one is right for you? That depends on how many employees you have, how comfortable you are with taking on personal liability for business operations, and how you want to pay taxes on money earned by the business.

• How to Make an Organizational Chart

You’ll likely need a federal Employer Identification Number (EIN) to do business no matter where you’re located. The IRS says to get an EIN if any of the following apply:

• You have employees.
• You operate as a corporation or partnership.
• You file tax returns for employment; excise; or alcohol, tobacco, and firearms.
• You withhold non-wage taxes on income you pay to a “non-resident alien” (IRS definition).
• You have a Keogh plan, which is a retirement plan for some small businesses and self-employed people.
• Your business has relationships with certain organizations like estates, farmers’ cooperatives, nonprofit organizations, plan administrators, real estate and mortgage organizations, or trusts.

To get an EIN, complete and submit an application with the IRS. You’re eligible for an EIN as long as the person who applies has a valid Social Security number (SSN) or other Taxpayer Identification Number (TIN).

• How to Get a Business Tax ID

First, you need a place to put the money your business earns. Although it’s not always required to open a separate bank account for business income, we recommend doing so for several reasons. These include (but are not limited to) credit and capital, liability protection, professional services and taxes.

• Small-Business Bank Accounts: Your Ultimate Guide
• Types of Business Bank Accounts
• How to Open a Business Bank Account

It is critical to be able to streamline your systems in how you track finances, pay employees, invoice vendors, bill customers, and secure tax records.

• What is Payroll Software?
• 12 Surprising Benefits Business Owners Found Using Payroll Software
• Best Small Business Management Software 2022
• Best Payroll Software for Small Business 2022
• The 9 Best Small Business Accounting Software in 2022
• The 7 Best Free Accounting Software of 2022
• The Best Bookkeeping Software for Small Business 2022

As your business grows, your employees will as well. You need software to both manage your employees and help them grow.

• What Is Human Resource Software?
• 10 Best Workforce Management Software 2022
• 10 Best Human Resource Software for Small Business 2022
• 9 Best Scheduling Software for Small Business 2022
• Best Small Business Management Software 2022

There is nothing more stressful than filling out government forms without confidence about what you are supposed to write. Filing taxes is no joke, but there are systems and software that can help ease this annual burden.

• How to File Taxes If You’re Self-Employed
• How to File Small-Business Taxes in 2022
• How to File Taxes as an Independent Contractor
• How to Calculate Payroll Taxes

Whether you are at the beginning of your entrepreneurial journey or somewhere in the middle, solutions can seem difficult to find. There are systems and software that are made to simplify this kind of stuff for you.

Bottom line: you are not alone and we are here to help find you the solutions that fit best for your problems.

Want some ideas for your HR software pick? Check out our favorite human resource software for small businesses.

Disclaimer

At Business.org, our research is meant to offer general product and service recommendations. We don't guarantee that our suggestions will work best for each individual or business, so consider your unique needs when choosing products and services.