10-Point Small Business Checklist

10 Things To Do When Starting a Small Business: Checklist

We know starting a small business is exciting, but it takes a lot of work. So, we put together a 10-point small business checklist to help you get your company up and running.

From creating a business plan to getting the right type of small business insurance, our small business startup checklist can help you get ready to open your doors for the first time.

1. Determine the Viability of Your Business Idea

Before you start your small business, it’s important to make sure you have a strong foundation. To do so, make sure you have a business idea that meets customers’ needs. Base your business idea on market research to help you:

Identify customer habits, trends and needs
Determine the best way to market your product and service
Get feedback on your idea or proposal

Doing your due diligence can help you save time, energy and money before you open a business.

2. Decide on Your Business Structure

Su business structure is an important decision that can impact other areas of your company, like:

Impuestos
Licenses
Insurance needs

Some common small business startup structures include:

Sole proprietorship, which means one person serves as the business owner and runs the operations.
Limited liability company (LLC), which helps protect the personal assets of its members. With an LLC, your personal and professional assets are kept separate.
General partnership, where partners are co-owners of the business and equally share rights and responsibilities.
Limited partnership, which means partners don’t have a say in running the company.
C corporation, a time-tested business structure, provides the best protection against liability.
S corporation, in which you don’t have to pay taxes on profits at the corporate level and on dividends at the individual level.

3. Write a Business Plan

There are many ways to write a business plan, but it’s a good idea to include these five components:

Executive summary, which you can think of as your elevator pitch. It can include a table of contents, background, market opportunity and competitive advantages.
Business description and structure to explain why you want to start a business and what you’re selling.
Market research and strategies, which can include sales forecasts and how your business compares to the competition.
Management and personnel bios to explain who is leading the company.
Financial documents to back up everything you’ve described in your organization and marketing sections.

4. Obtain Licenses and Permits

Depending on the industry you’re in, you may have to get certain business licenses and permits. For example, if your business can have an environmental impact, like within agriculture, federal law requires you to get a license. Or if you set up a retail business, you may have to get a sales tax permit in your state.

With laws varying between states, it’s important you know what’s required of your small business before you actually open.

5. Register Your Business

Registering your business gives you more credibility with customers and clients.

When you register your business, you’ll file paperwork with your state and the IRS. Be aware that you may have to get the appropriate permits and licenses before you can register your company.

6. Get Your Finances in Order

Before you start your business, it’s essential your finances are in order. While financing a startup requires time and effort, it’s equally important to set up a business banking account to separate your company’s funds from your personal money.

If you’ve already registered your business with the IRS, you should have gotten an employer identification number (EIN). You’ll use your EIN to file your business’ taxes each year. Having your small business’ money separate from your personal assets will make the tax season easier for you.

7. Find an Office or Retail Space

There are plenty of options to consider for your business location. Depending on the type of small business you plan on running, you can:

Work from home
Lease or buy an office or brick-and-mortar location
Create a virtual office

Whether you have a physical or virtual location, it’s essential you get commercial property insurance. This coverage can help protect your owned or rented building, property or equipment that you use to run your company.

8. Obtain Small Business Insurance

When you open your doors for business, you’ll face different risks, like claims that your company caused bodily injury or damaged someone else’s property. These risks aren’t uncommon and can come up during normal business operations. That’s why small business insurance is important.

There are different types of business insurance that you can get. Common coverages include:

Póliza para propietarios de empresas (BOP), which includes general liability, commercial property and business income insurances in one policy.
General liability insurance to help cover claims that your business hurt someone else or damaged another person’s property.
Workers’ compensation insurance to give your employees benefits to help them recover from a work-related injury or illness.
Commercial auto insurance, which helps protect you and your employees on the road if you use a car to drive for work.
Data breach coverage to help you respond to a breach or if your business loses personally identifiable information.
Professional liability insurance, which helps cover your legal costs, judgments or settlements if your business gets sued for mistakes or omissions in the services you provide.

9. Get the Word Out

Marketing your business plays a key role in your success. You can increase your small business’ visibility by:

Creating a website
Starting social media accounts and engaging with the public
Handing out business cards

Marketing for startups doesn’t have to be intimidating. It can help you create your own brand and have a strategy to expand and grow.

10. Find a Mentor

Opening and running a small business is a big investment and will require a lot of work. If this is your first time starting a company, you’ll likely face challenges and questions that you don’t know the answers to. A good way to help you stay on the right track is to find a mentor.

There are a variety of organizations that pair new business owners with experienced mentors. SCORE, for example, has over 10,000 volunteer mentors who help small business owners thrive.

When Starting a New Business, The Hartford Has Your Back

We know starting a small business takes a lot of work. That’s why we put together this starting a business checklist, meant to help you open with a strong foundation.

We understand you may face unique risks when you open. We’ve been protecting small business owners for over 200 years and know the challenges you face. We’ve helped over 1 million small business owners get the coverage they need and we’re here to do the same for you.

Whether you need help getting the right type of business insurance or need to speak with a specialist, we’ve got your back. Get a small business insurance quote today and learn how we can help push you and your company forward.

This article provides general information, and should not be construed as specific legal, HR, financial, insurance, tax or accounting advice. As with all matters of a legal or human resources nature, you should consult with your own legal counsel and human resources professionals. The Hartford shall not be liable for any direct, indirect, special, consequential, incidental, punitive or exemplary damages in connection with the use by you or anyone of the information provided herein.