4 practical tips to start a business successfully

Simply put, entrepreneurs have a passion to fulfill a need for their customers or clients. But unlike other jobs that have a simple, more linear path, business ownership requires a dedication to find your own opportunities. That drive is a well that entrepreneurs can draw from to stick it out.

What’s your passion? Can you develop it into a small business or side hustle? Finding a trade, service, or product that motivates you is key to building an entrepreneurial career.

Vasan was a seasoned salesperson in the jewelry industry before she turned it into her own business. She said she finds forging long-term customer relationships particularly rewarding because her jewelry becomes linked to customers’ most cherished moments, such as weddings, birthdays, and anniversaries.

“[My store] isn’t just a brick and mortar for me. This is a temple for me,” she said. “When people come in, I want them to absorb all the positive vibrations, all the positivity, all the prayers, and all the blessings.”

Writing a business plan is like designing a roadmap for your business. It should be a regularly updated document that can help you make the right decisions for you and your business.

Check out this step-by-step guide for what to include in your business plan. For additional guidance, look for resources or groups in your area, such as business accelerator programs, local chambers of commerce, or your bank. 

If you’re new to starting a business or have a straightforward idea, a leaner one-page business plan might suffice. Traditionally, a business plan provides a detailed overview of who’s behind the business, what the product or service is, and in-depth research into marketing, growth, and financial projections.

Even if you don’t plan to apply for a business loan or seek seed funding or startup money from potential investors, a business plan can help you to answer key questions about your entrepreneurial pursuits before you take financial risks:

• What’s my target market? Will I operate within a geographic area or specific industry?
• Who are my potential customers and competitors? Where do I fit in?
• How will I fund the business? Will I use my own funds or seek financing?
• How will I plan to grow the business over time?  
• What’s my exit plan if the business doesn’t work out or I decide to close it?

Less than a year into launching her business, Vasan found it had grown faster than she first expected. She’s considered opening another store but is taking a measured approach to growth. 

“Take a huge step, you’ll fall face flat on the ground. I don’t want to do that,” she said. “Baby steps.” 

It’s important to write a plan you’re able to maintain. Don’t forget to regularly return to your business plan to take stock of your progress and readjust based on market factors or other updates to the business.

It may be time to make your business official. There are a few steps to officially launching a business.

First, consider registering your business with your state. During this process, you may choose a structure for your business, such as a sole proprietorship or limited liability company (LLC), and a name for your brand.

This is how you’ll receive state and federal tax IDs for tax filing purposes. This is also the time to consider if you’ll need additional local, state, and/or federal licenses or permits, like a food license to open a restaurant or a permit to operate a certain vehicle

Second, consider your business’s banking needs. It may be time to open a business checking account and, if necessary, a business credit card. This essential step can help budding entrepreneurs keep their personal finances separate from their business transactions.

Opening a business checking account is not just an opportunity to professionalize your business. It’s also a time to establish a relationship with a financial services partner who can walk you through products, tools, and resources you may need to build your business from the ground up.

Lastly, consider best practices for small business recordkeeping. It’s essential to stay on top of documenting and monitoring income, expense, and payroll transactions, business bank statements, and other financial information.

You’ll need these records for when you file taxes on behalf of your business. Some entrepreneurs may opt to handle this themselves while others may look to accounting software or third-party financial professionals like an accountant.

Keeping track of your business’s finances will also help you manage its growth and update your plan along the way.

Failure can be a bad word in business circles, but rough patches like slow sales, denied applications, or failed expansions can lead to learning opportunities. In truth, success isn’t a label any business owner can wear forever. 

Having a support system can help you make the most of these opportunities and keep you motivated. Up-and-coming business owners benefit from a few trusted contacts in their corner for industry-specific advice or the occasional pep talk, such as:

• An experienced entrepreneur 
• A business owner or leader in your industry 
• A mentor who you can have deep conversations with 
• A business banker or a financial professional familiar with your business

For Vasan, failure was not only something she and her family thought about before starting Priya Jewelers, but a possibility they embraced. Because even if the business failed, Vasan said she didn’t want to live with the regret of never trying to start her own business.

“That feeling of, ‘Gosh, should I have done that?’ Guess what? I’m not going to have that feeling,” she said. 

While the process of starting a new business can look different among entrepreneurs, the first steps may include creating a business plan, registering your business with local, state, and/or federal government, applying for necessary licenses and/or permits, and opening business banking accounts.

A business plan isn’t required for starting a company but having a detailed business plan with an overview of the idea, market research, and financial projections, may be necessary if you decide to seek business financing from a bank or startup money from investors or supporters.

The first legal requirement to consider when starting a business is deciding the structure of the business. This will affect who technically owns and controls the business, what liability you’ll take on when operating the business, and how it will be taxed.

Another potential legal requirement for a business is registering with your state and filing for necessary local, state, federal, or other permits or licenses. Check out the website of your city, state or state secretary of state, and any related federal agencies for information about permits and licenses.

Consider consulting with an accountant and/or attorney. There are many factors and advantages or disadvantages that will go deciding what business structure is right for you and your business. Ask yourself questions like:

• Do I have proprietors or business partners who I need to consider? Am I seeking investors or external investment?
• Do I want to grow the business rapidly or more measured?
• Do I have assets that I want to protect from a business failure or bankruptcy?
• Do I have the business acumen or guidance necessary to maintain a more complex business structure or would a simpler business structure be advantageous?