Starting a new business often leads new entrepreneurs to feel equally excited and overwhelmed. On the one hand, you get to put your experience and skills to work. This can lead to personal fulfillment and even financial reward.

But on the other hand, navigating the setup process can seem daunting. What do you need to start a business, anyway? How do you choose the right structure? And where should you register and promote your new company?

Launching a new company requires careful planning. But you can set yourself up for success by following the right steps. In this article we'll cover how to start a successful business, from doing market research to getting your brand online.

9 Steps to Start a Small Business

There are essential set up expenses to building a website. We’ve included the average prices, but the final cost will depend on the provider you choose and the features you need.

Get ready to go to market with the steps below.

1. Clarify Your Business Idea

Doing market research helps you get clear on your idea, evaluate the competition, and set realistic expectations for your business. This process answers questions like:

• How large is your total addressable market? How many customers could you potentially acquire?

• Where are your potential customers located? Where would it make the most sense to do business?

• How many other businesses offer a similar solution? How can you differentiate your offering?

• What should you charge for your products or services? How much do competitors charge?

To research your market and your competition, use resources like:

• Local and national data, such as the Census Business Builder

• Surveys of your customer base, using tools like Typeform or SurveyMonkey (pictured below)

• Interviews with potential customers, either in person, online, or over the phone

2. Find a Business Location

Market research helps narrow down your list of potential business locations. But there are several factors to consider when deciding where to locate your business.

First, determine if your business needs a physical location. If you plan to serve customers at a brick-and-mortar store or office, you need to know where your customer base is located and where you can hire employees. Then, research the average cost of commercial real estate, taxes, and wages in the local area.

If you plan to operate an online-only business, you'll have more flexibility. To make the right choice, research business registration, tax, and license fees for the locations you're considering.

3. Decide on a Business Structure

Next, review the various types of businesses and choose the one with the taxation process and shareholder options that best fit your needs. For example, the most common business structures in the United States include:

• Sole proprietorships for individual business owners

• Partnerships, S corporations, and limited liability companies for small businesses

• Corporations for businesses with shareholders

The structures you can choose from depend on where your company is based. Check with your national and local government offices to learn more about your available options.

4. Choose a Business Name

Every business needs a name that captures your company and helps customers remember your brand. Choosing the perfect name is an art and a science.

Professional namer Rob Meyerson advises, "The brand name you select should strike a balance between being strategic, creative, and technical." Use these guidelines to pick the right business name:

• Strategy: Aim for a name that's meaningful to customers, distinct from the competition, and adaptable as your brand evolves.

• Creativity: Choose a memorable name that sounds nice and looks good in writing.

• Technicality: Pick a name that avoids legal issues and that customers aren't likely to misspell or misunderstand.

Not sure where to start? Use Shopify's AI Business Name Generator to get ideas for your brand.

5. Develop a Business Plan

Once you've clarified your idea, create a solid business plan. Think of it like a blueprint for your business. It summarizes your concept, marketing, and finances, making this step one of the most important tips for starting a small business.

Use the Small Business Administration (SBA) business plan outline as a guide. Essential sections include:

• Description of your company and the problem it solves

• Analysis of your industry and target market

• Business structure and management team

• Explanation of your product or service

• Plan for sales and marketing

• Financial projections for the next five years

6. Register Your Business

Once you've done your research and mapped out a plan, you're ready to make it official. In other words, it's time to register your business.

The specific steps may vary based on where your business is based. In most cases, the process includes registering at the national and local levels so you can secure tax ID numbers.

As a business owner in the United States, you typically need to apply for an employer identification number (EIN) and report beneficial owner data to the Financial Crimes Enforcement Network (FinCEN). Then, you need to register with your state, generally with the secretary of state or division of revenue.

7. Secure Business Licenses, Permits, and Insurance

Current business registration is just one formality startups need to operate legally. Depending on your structure and location, you may need other documentation to do business.

To confirm additional requirements, check with the federal agency that regulates your industry and with your state's business registration office. For example, you may need to apply for licenses or permits to sell certain items or operate specific equipment.

You may also need to purchase a business insurance policy for added protection. For example, many small businesses hold general liability insurance to protect from injury and property damage claims. Check your state's insurance requirements to guide your decision.

8. Set Up Your Business Accounting

Before you can receive funds or pay bills, you need business accounts. Opening a business bank account allows you to process customer payments and handle expenses. You might also opt to apply for a business credit card to make larger capital purchases.

To simplify the process, choose the right accounting software. For example, QuickBooks is a popular option for recording receipts, tracking bank transactions, and monitoring cash flow so you can file taxes easily.

Once you've set up your business accounting, you can seek out sources to fund your business. For instance, Lendio offers small business loans for added cash flow, new equipment, and hiring needs.

9. Make Your Business Visible Online

After completing the setup process, you're ready to launch and grow your business. Establish an online presence for your business so customers can find it easily.

Begin by choosing a hosting provider and registering a domain for your website. Next, choose a website builder. While HostGator also offers website templates, other providers may have plans and features that better fit your business needs.

For example, Wix has 900+ prebuilt website templates as well as an AI-powered website builder. Wix also offers ecommerce and scheduling tools, making an ideal all-in-one software for small businesses.

Next Steps to Launch Your New Business

Once you’ve purchased a domain name, you’ll need to pay for web hosting. This is where your website will physically live. It’s possible to get web hosting for free if you forgo using a custom domain. 

For example, WordPress offers free hosting, so you could choose to make your domain name something like www.mybusinessname.wordpress.com. The downside is that you won’t have your own custom domain name (the name WordPress is in the URL), and this doesn’t look as professional.

Next Up Related Articles

• How to Register a Domain Name?
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