Do the following tasks either before launch or during the early days of your startup.
1. Determine viability
Be brutally honest. Your startup needs to be something you can make a
profit doing or delivering. Ask yourself: would you buy it? Run the
numbers: will customers pay enough so that you can cover costs and make a
profit? Here is a list of
29 more questions to ask, attributed to noted investor Paul Graham.
2. Create a business plan
It’s easy to convince yourself that you don’t need a business plan,
but creating a business plan with financial projections forces you to
think through details. Keep your plan a living breathing thing that you
revisit and adapt regularly.
3. Figure out the money
Most startups take a lot more time to get off the ground than you
expect. Know where your living expenses for the first year will come
from (savings, a job, spouse’s income, etc.). If you need financing for
the business start investigating as soon as possible.
4. Choose a business name
You want a name that will stick in your target audience’s heads. And
it shouldn’t already be taken by another company. Do Google searches and
use a corporate name search tool to see if the name you have in mind is
unique. Check at the state and Federal level.
5. Register a domain name
Get a matching domain to your business name. An AOL email address or
a website with free hosting and a name like mysite.wordpress.com makes
it seem like either (a) you are not running a real business or (b) you
don’t plan to be around long.
6. Incorporate / figure out legal structure
Incorporating your startup
can protect your personal assets. Talk over structure (corporation,
LLC, sole proprietorship) with your attorney and accountant.
7. Apply for an EIN
An Employer Identification Number (EIN) helps you separate yourself
from your business. You’ll need it if you plan to incorporate your
business or open a business bank account. Plus, with it you can avoid
giving out your social security number (an opening to identity theft).
EIN numbers are free; apply online.
8. Investigate and apply for business licenses
You may need one, if not several, business licenses for your startup,
depending on your industry and where you are located. Most licenses
are at the state or local level. Here in the United States,
the SBA has a helpful business license and permits tool.
9. Set up a website
Get your website up and running as soon as possible. Today, it’s
necessary for credibility. Even if your product is not yet built, you
can start with company information.
10. Register social media profiles
Getting set up on the major social media channels (Facebook,
LinkedIn, and Twitter, to start) will make marketing on them later
easier. Also, it’s important to reserve your brand as a profile name.
Try
Knowem.com to reserve the names.
11. Start your revenue stream
Start generating revenue as soon as possible. At the early stages of
a startup there is never enough money – resist the temptation to wait
until things are “perfect.” Oh, and get your lawyer to create any
customer contract forms necessary.
12. Rent retail or office space
If you’ve got a brick-and-mortar business, you’ll need to sort this
out early. If you plan to run a retail business, pay attention to foot
traffic, accessibility, and other factors that will affect the number of
people that will walk in your store. EXCEPTION: If you don’t have a
brick and mortar or retail business, then hold off renting an office as
long as possible to avoid saddling your startup with lease payments.
13. Order business cards
As a startup founder, you’ll be doing a lot of networking, so order
plenty of business cards. They are inexpensive enough that you can
reorder them later if things change. Without cards you lack credibility.
14. Open a business bank account
It’s all too easy to use your personal bank account to pay for business expenses, but it becomes a gnarl to untangle later.
15. Set up your accounting system
Once you have your bank account set up, choose an accounting program.
Start as you intend to go. Few things will doom your business faster
than books that are a mess.
16. Upgrade your smartphone and choose apps
As an entrepreneur you are going to be on the go – a lot. I can’t
emphasize enough how useful a good phone with good business apps can be,
in running your startup. Get a credit card swipe device to accept
payments, too.
17. Consult your insurance agent and secure coverage
Depending on the type of business you’re starting, you may need
insurance of one kind or another, like liability, workers’ comp, or
health insurance, especially if you hire full-time staff.
18. Hire your first employee
Depending on the type of business you have, you may need staff from
day one (retail) or you may be able to outsource to freelancers,
interns, and third-party vendors for a while (service and tech
businesses). Just remember, trying to do everything yourself takes
you away from growing the business.
19. Line up suppliers and service providers
Finding a good source of inventory is crucial, especially in certain
types of businesses (retail, manufacturing). Beyond inventory, line up
good reliable suppliers and service providers so you don’t have to sweat
the details.
20. File for trademarks and patents
The best thing to do is consult an attorney early about the need for
patents, especially. Get the advice early. Then you may be able to
defer filing for a while, depending on the nature of your business.
21. Work your network
Reach out to former co-workers and colleagues, as well as friends and
family. Don’t pressure them to buy your products or services. Instead,
tap into them for introductions and help with other things on this
startup checklist.
22. Don’t waste time on “partnerships”
Be careful about wasting time on “business partnership” discussions.
Your business won’t be attractive to potential partners unless and until
you start making headway. Focus your precious time to make sales and
get customers.
23. Refine your pitch
You need a good elevator pitch for many reasons: potential investors,
customers, prospective new hires, bankers. If you can’t persuasively
and clearly pitch your business, how can you expect key stakeholders to
buy in?
24. Refine your product, and marketing and sales approach
As you go along you will learn more about the marketplace. Use
customer feedback to refine your product and service offerings, and your
go-to-market approach.
25. Get a mentor
It’s all to easy easy to work “in” your business rather than “on” it. As Michael Gerber tells us in
The E-Myth, we need to be working “on” our businesses if we want them to grow and flourish.
A mentor who has succeeded in your industry can provide you with priceless advice and serve as a sounding board.
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