What You Need To Do Before Starting a Successful Business

Think of starting your business like building a house. It can look amazing, but without a solid foundation, it’ll crumble. 

Getting that foundation right is crucial. It might not be as big and exciting as your launch party, but trust me — it’s the difference between a business that lasts and one that fizzles out.

Don’t Neglect Research

You need to understand the world you’re joining. It sounds simple, but it’s key to know your industry and who else offers similar products. 

Do your competitors already do it well? Where can you do it better? This knowledge gives you the edge to carve out your own space — and then dominate it.

Define Your Audience

Who are your perfect customers? What age are they? What do they do? Where do they hang out online? Having this crystal-clear image in mind means you know exactly who you’re talking to. It shapes your whole marketing plan.

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Choose Your Business Structure

Outside of your business name, the structure is like your business’s legal personality. Are you the sole owner (a sole proprietorship), or maybe you want to set up a separate legal entity altogether, like an LLC (limited liability company)? 

Each type of business has different rules about taxes and liability protection. It’s super important to get this right from the start, affecting how much paperwork you’ll deal with down the road.

Crafting Your Mission

Why are you doing this? It’s not just about the money. 

Your mission is the heart of your business. This is the driving force behind those early mornings and late nights. What’s the big problem you solve? What changes in the world because your business exists? A powerful mission is that fuel that keeps you going.

Running a business isn’t always about the fun stuff. To stay afloat, you have to be money-smart. This section is about knowing where every dollar goes and how to get the cash to make your big dreams real.

Understanding Your Tax Obligations

Taxes aren’t exactly the most exciting part of a business, but one thing you count on is the government wanting its cut of your profits. 

The IRS doesn’t care if you forgot — they’ll still come knocking. Make sure you know what kind of business taxes you’ll need to pay and what the deadlines are. Getting this wrong can hurt your business, so stay ahead of it.

Securing Funding

Unless you have endless business finances, you’ll need a plan for your startup costs. It takes money to make money. But how do you get it? You’ve got options. 

There are small business loans from banks and the Small Business Administration, or maybe you pitch angel investors, people who put money into promising new businesses. Each path has its own rules and requirements. Do your homework to find the right fit for your business.

Risk Management

Things don’t always go to plan in business. That’s where business insurance steps in. 

Liability insurance covers unexpected costs, like if a customer gets hurt at your shop or someone sues you. Think of it as protecting everything you’ve worked so hard for. Not every business model needs the same things, so research the right policy for you.

Starting a business requires careful planning. You wouldn’t start driving without knowing where you’re going and how to get there. The same is true for your business — a solid plan is your guide, keeping you on track and avoiding unnecessary delays.

The Essential Business Plan

Your business plan is your map — it’s your go-to guide for big decisions. 

Here’s what goes into it:

• Your Mission: We talked about this earlier — what’s the big problem you’re solving? What are you hoping to accomplish?
• Target Market: Who are your dream customers?
• The Competition: Who else is out there, and how are you better?
• Your Marketing Plan: How will you reach potential customers? Will you use social media, email, or something different?
• Money Matters: How much money does it cost to get started? How will you make money?

Investors and lenders will want a solid business plan before giving you money. It shows them you’ve done your homework and are serious about making it work.

Timing Is Everything

In business, slow and steady doesn’t always win the race. Sometimes, you have to be ready to act fast. 

Opportunities don’t wait around forever. Imagine if you didn’t grab that perfect store location when it was available, or were too slow to hire an amazing employee. Being decisive in those early stages makes all the difference.

Mentorship Matters

There’s no point in re-inventing the wheel. Why learn from your own mistakes when there are experienced people out there to guide you? A mentor is someone who’s been through it all — the good, the bad, and the ugly. They can share their knowledge, saving you time and money when you don’t know what to do next. 

You’re a great entrepreneur, full of ideas and energy — but you can’t be an expert in everything. That’s where your team of experts comes in, helping you tackle the tricky tasks so you can focus on the big picture.

Lean on the Pros

As an entrepreneur, there comes a point when you need help with the stuff you either don’t know or don’t have time for. That’s where lawyers and accountants step in.

The Legal Side

Starting a new business means paperwork, and lots of it. If you don’t set up your business the right way, with the right legal structure, it can lead to headaches down the road. 

Getting a lawyer involved is a helpful part of making sure your business is on track from the get-go. A lawyer can help you with:

• Choosing between an LLC, sole proprietorship, and other options for your business.
• Filing the right paperwork to protect yourself from personal liability.
• Getting your business licenses and an Employer Identification Number (EIN) from the IRS.

And it’s not all about the legal side. Your financial health is equally crucial. Let’s talk about how an accountant can become your money management secret weapon.

Money Matters

Accountants don’t just handle taxes (though that’s important). A good accountant becomes your financial partner. They keep track of your income, expenses, and profits, making running your business easier. 

An accountant can also give you advice on:

• Helping you open up your business bank account and maybe even a business credit card.
• Choosing the right accounting software for your needs.
• Using cash flow projections to see if you have enough money to hire employees or purchase new equipment.

The right accountant makes money matters less stressful. But you know as well as I do, sometimes even the best plans need an expert’s help. So, when do you know it’s time for that extra support?

When To Bring in Help

So, when is the right time to call the pros? Here’s a rule of thumb: If it’s a task that can land you in hot water if done wrong, it’s worth paying for expert advice. Setting your business up right from the beginning can save you tons of money down the road in fees and fines.

A Winning Team

The right lawyer and accountant are part of your success squad. They free up your time to focus on building your business, not worrying about tax forms or contracts. Think of it as an investment in the future of your business.

Starting a business takes more than just a good idea. You need solid research, a smart plan, and the right people on your team. It might feel overwhelming, but remember, it’s all about those step-by-step actions.

Ready to turn that dream into reality? Start with our Founder OS newsletter. It’s packed with insider tips and strategies, guiding you on your journey to business success. Or, take it further and apply for our Founder OS program, where we’ll turn you into a business-building machine.