A big emphasis on strategy and planning near conception dramatically increases your odds of both follow through and better profit margins. Along with being required to secure funding, a professional business plan also supports growth, helps manage cash flow and distinguish fly-by-nights from the serious few.
And let’s not forget how powerful the planning process is for business owners and their teams. They get a chance to really look at the specifics of their goals and milestones, define company culture and what drives it, the different brand-components and how they fit together, and other important stuff like that.
Take Action: Check out our 100% free Business Planning Guide designed to get you from A-to-Z as pleasantly as possible. Plus, we provide access to tons of other great tools along the way.
Your 2nd step covers a ton of ground. First, you pick your brand’s business entity, then through the registration process you’ll secure the name by filing with the state. Even more importantly, you’ll be protecting your personal assets (house, car, etc).
Most entrepreneurs form an LLC because it has all the benefits of a Corporation without the disadvantages like double taxation, board of directors or corporate officers. However if you’re trying to take your company public or raise substantial outside capital, you should probably form a Corporation.
Take Action: Since this step is so important and expensive if it’s not done correctly, we highly recommend investing 10 minutes to go over your options through our business structure comparison guide. You’ll get a better idea of the advantages and disadvantages of each while building a solid legal foundation for your business.
Along with a low cost of living, low crime rates, great traffic, excellent employment rates and more, it’s not hard to see why they’re warm to businesses. Expect plenty of tax incentives, credits and breaks from the great state of Iowa relative to your industry, type of business structure and location.
Take Action: Start by visiting the Iowa Dept. of Revenue website’s Starting a Business section that takes you through the steps and introduces you to Iowa-specific tax rules.
Ideally you should be working with the best ‘dang’ lawyer you can afford, or a professional filing service. But that’s not to say it’ll be rough, you may need only a simple business license to be compliant. It really depends on the what you’re into, but for most startups going through the regulatory process is like calmly navigating the Missouri river in Sioux City!
Your financials are the footwork of your business dance. Either you’re in-step or fumbling all over the place. To do it right, first you find a great banking institution and create dedicated business bank account separate from your personal accounts. Then it’s a matter of a simple accounting software.
Are you headed towards the corn capital, Cedar Rapids, or the biz-hub of Sioux City? Perhaps you’re more into the mid-size towns like Waterloo or Iowa City for its ISU-infused entertainment industry?
What really matters is how many assets you’ll have at your disposal – business services, good local demographics/economy, an educated workforce, beneficial regulatory systems, etc. After that it’s all about management. How much easier to run the business is it because of this town, or this suburb, etc.?
Take Action: Listen, we know picking a spot can be tough if it doesn’t somehow happen naturally through your personal/professional networks. If you’d like to brush up on everything that goes into making this decision, refer to our friendly guide on How to Choose the Perfect Location.
Just because you build a great business doesn’t mean, “they will come.” Odds are they won’t. Odds are your first couple years in business will be hard. Each sale will count and 80% of the initial revenue will come because you went out and got it!
That said, if funding or financing becomes an issue there’s a vast network of resources in Iowa to help you out, not to mention all the potential online once you set up shop. It’s just a matter of how resourceful you and your team choose to be.
Take Action: The email course we mentioned in Step 1 really comes in handy here because planning and finances go together. You can also browse our guide on How to Finance a Business to start generating ideas.
No one’s saying you have to have a website that’s the internet equivalent of a large from Fong’s Pizza. It just needs to be functional, user-friendly (read: easy to use), and provide people with both a way to investigate and engage your brand.
Take Action: Unless you’re a 100% ecommerce company (in which case we’d recommend Shopify), check out a business website builder like Wix or Weebly. They are all extremely easy to use and out-of-the-box. At the end of the day you’ll have a professional business website without pulling any hair out.
We weren’t sure if we wanted to add this step or not because it’s such a big can of worms. But marketing, like having a website to help, isn’t optional and there’s no end to the budget-consuming complexity you can reach. It really comes down to people skills and the ability to serve your customer. Honestly.
Take Action: Half the wasted marketing money out there being thrown away by new businesses goes to flashy new methods that have no real user-base yet. Go where the people are, then find your niche and make your brand’s voice heard.
As you continue your entrepreneurial journey, please keep Startup Savant in mind as one of your reliable sources for fellow change-maker insight, motivation, as well as savvy new tools making waves in our community. We’d be thrilled to continue providing free tools to bring your idea to life!