Turning your business dream into reality can be a challenge. Knowing the right steps to take and having the proper resources can help save time and money. The following is a guide for entrepreneurs looking to start a business.
Please note that these are basic steps you should consider and be aware of, but it is always best to consult a professional to help walk you through the steps and make sure you don’t miss anything. Search the SourceLink Nebraska Resource Navigator to find business consultants near you.
Step 1 - Ideate
Step 1 - Ideate
Think of a new product or service based on an unmet need. Take an existing product or service from one market and offer it in another where it isn’t available. Look into an up-and-coming franchise operation. These are just a few of the ways to come up with a business idea.
Identify industry gaps, pain points and unserved niches:
- How to Come Up With an Innovative Business Idea (Harvard Business School)
Match the business opportunity with your skills, experience, and passions:
Step 2 - Prepare
Step 2 - Prepare
Take the time to find out if your idea is viable. Who will buy your product or service? What’s happening in your industry?
Research your market and current trends:
- Market research and competitive analysis (U.S. Small Business Administration)
Take business classes or enroll in entrepreneurial programs on starting a business:
- Upcoming Business Events
- Enlighten no-cost business videos
- Learn about franchise ownership (FranNet)
- Free resources for veterans interested in franchise ownership (VetFran)
- Search the SourceLink Nebraska Resource Navigator for colleges and other education opportunities near you
Meet with professional business advisors for no-cost advice and guidance:
- Search the SourceLink Nebraska Resource Navigator to find business consultants
- The Nebraska Small Business Development Center (SBDC) has consultants in 10 offices across the state that offer guidance at no cost to small business owners
Share your idea with peers for feedback:
- Entrepreneur groups such as 1 Million Cups and Startup Grind allow you to pitch your idea and receive feedback from peers
Step 3 - Plan
Step 3 - Plan
If you intend to obtain a loan for your business, apply for a small business grant, pitch your business idea to investors, or enlist the support of business partners, you need a business plan; then you need to act on it.
Create a blueprint for your business by putting together a sound business plan:
- U.S. Small Business Administration – Write your business plan
- SCORE has business plan templates and other planning resources
- Calculate your startup costs (sba.gov)
- Search the SourceLink Nebraska Resource Navigator to find organizations near you that assist with business plans
Form your team, find a co-founder, outsource tasks as needed:
- 7 Tips for Making a Business Partnership Work (SCORE)
- The Entrepreneur’s Guide to Outsourcing Work (SCORE)
Come up with a good business name; check to make sure it’s not already taken:
- How to Name Your Business (SCORE)
- Check with the Nebraska Secretary of State to see if the name you choose is available. While you’re on the Secretary of State website, spend some time browsing, as it contains an abundance of useful information (start with the Corporate and Business page).
Step 4 - Register
Step 4 - Register
Legitimize your business by registering your legal and assumed business name, business entity type, and by obtaining your federal and state tax identifications.
Select a business entity type which will provide you with the proper legal protections and tax benefits
- U.S. Small Business Administration – Choose a business structure (sole proprietorship, partnership, limited liability company, corporation, etc.)
- Doing Business As (DBA): What is a DBA, How to File as a DBA (NBDC)
- Consult with a Corporate/Business Law Attorney
- Consult with a Certified Public Accountant (CPA)
Register your business entity with the appropriate federal, state and county government agencies
- Nebraska One-Stop Business Registration provides steps for registering your business entity (please also be aware that most business types require filing a biennial report with the state after you are established)
- An Employer Identification Number (EIN), also known as a Federal Tax Identification Number, is used to identify a business entity; apply for an EIN online through the IRS
- Learn more about federal business taxes from the IRS
- Check with the Nebraska Department of Revenue to see if you need to register for a Nebraska Tax ID Number for sales tax, lodging tax, payroll tax, etc.
- Check with your county to see if registration is needed
- Check with your city to see if registration is needed
Obtain any professional/industry-specific state license(s) or certification(s) (if applicable)
Step 5 - Finances
Step 5 - Finances
Before opening your actual or virtual door for business, you will need to set up your business finances and record-keeping.
Open a business bank account; bring your business registration documents and business license
Set up an accounting and record-keeping system
- Record Keeping for a Small Business (Small Business Administration)
- Tax and Record Keeping Tips for Your Small Business (SCORE)
- Recordkeeping (IRS)
Obtain financing/capital to start your business (does not apply to self-funded entrepreneurs):
Step 6 - Logistics
Step 6 - Logistics
Before opening your actual or virtual door for business, you will need to find a location, secure insurance, and think through the logistics to operate your business.
Search for potential commercial business locations (i.e. Office, Warehouse or Retail Space) if not home-based.
- Nebraska Department of Economic Development – Available Sites & Buildings
- Search the SourceLink Nebraska Resource Navigator to find your local economic development organization – they can generally assist with site location
Decide on a commercial business location (does not apply to home-based businesses). Sign a lease or purchase a commercial property, hire a licensed contractor to obtain the proper Building Permits for any buildout (if applicable):
- Questions to Ask Before Signing a Commercial Lease (SCORE)
- Not Ready for Commercial Office Space? Coworking Might Be for You (SCORE)
Obtain business insurance
- Be sure to consider all of the areas you may need coverage – Property, General Liability, Professional Liability, Workers Compensation, Auto, etc.
- U.S. Small Business Administration, Business Guide, Get business insurance
- Commercial Property Insurance for Small Businesses (NBDC)
Hire and train employees (if applicable)
- Search the SourceLink Nebraska Resource Navigator for HR and Workforce Resources
- Make sure to fill out an I-9 & W-4 for every employee
- Set up payroll and withholding for employees through an accountant or online service
- Explore the Nebraska Unemployment Insurance Guide for Employers and other Nebraska DOL resources
- Understanding Employee vs. Contractor Designation (IRS)
- Run through logistics with your team
Procure suppliers and service providers
Create/obtain products/inventory for sales and/or equipment/tools for services
- Buy assets and equipment (SBA)
Step 7 - Launch
Step 7 - Launch
Open your physical or virtual doors for business! Don’t forget that marketing and advertising are an ongoing part of operating a successful business.
Create a marketing plan
- Upcoming Business Events and Classes – marketing classes are available through many resource providers
- U.S. Small Business Administration, Business Guide, Marketing and Sales
Activate your business website and social media accounts; send out a press release and begin building brand awareness by executing your marketing plan
- Enlighten – Marketing and Market Research – enroll here
- How to Build and Expand Your Online Presence (SCORE)
- How Entrepreneurs Can Make the Most of Social Media (Lassonde Entrepreneur Institute)
- How to Harness the Power of Social Media Without Spending Money (NBDC)
- 12 Reasons Why Small Businesses Need a Website (SCORE)
Contact your Chamber of Commerce for a ribbon cutting ceremony; send out invitations for grand opening (if applicable)
- You can search for your local Chamber of Commerce on the SourceLink Nebraska Resource Navigator