Starting a business: 17 essential steps for your success

Published Wednesday 5 November 2025

Table of contents

• 17-point checklist for starting a business
• Build resilience for long-term success
• Frequently asked questions about starting a business

Key takeaways

• Establish your business structure early by choosing the appropriate legal entity (LLC, corporation, etc.) and completing all required registrations including federal EIN, state tax ID, and local permits to ensure legal compliance and avoid operational delays.

• Separate your personal and business finances immediately by opening dedicated business bank accounts, obtaining business insurance coverage, and setting up proper tax registration to protect yourself legally and maintain professional credibility.

• Secure your brand identity by registering domain names across common extensions and filing trademark applications to protect your business name and logo from competitors.

• Create detailed financial projections and break-even analysis using accounting software to validate your business model's profitability potential, which is essential for securing funding and making informed decisions.

17-point checklist for starting a business

This checklist helps you turn your business idea into a legally compliant, financially sound company. You will:

• complete essential tasks in the right order
• avoid costly mistakes
• build a strong foundation for growth

What you'll accomplish:

• Set up your business structure and registrations for legal compliance
• Establish banking, insurance, and tax systems for a strong financial foundation
• Build your digital presence and choose essential tools for operational readiness
• Plan for employees, technology, and data security to prepare for growth

1. Define your unique selling point

Your unique selling point (USP) is a clear statement of what makes your business different from competitors. A strong USP helps you attract the right customers and secure funding.

How to create your USP:

• Identify your advantage: What do you do better, faster, or cheaper than competitors?
• Keep it concise: Sum it up in two sentences or less
• Make it memorable: You'll use this when pitching to investors and customers

2. Find a business mentor

A business mentor gives you expert guidance and industry insights to help you avoid common startup mistakes. Many programs connect entrepreneurs with mentors, and these programs have helped more clients from underserved communities.

3. Create a business plan

A business plan is a detailed document that outlines your business strategy, financial projections, and growth plans. It's essential for securing funding and guiding your business decisions.

Your business plan should include:

• your current situation
• your future vision
• target market analysis
• financial forecasts

4. Register web domains and trademarks

Domain names and trademarks protect your brand identity and ensure customers can find you online.

Steps to secure your brand:

• Register domain names: Secure your business name across common extensions (.com, .net, .org)
• Check trademark availability: Search existing trademarks to avoid conflicts
• File trademark applications: Consult with a lawyer to protect your business name and logo
• Consider international protection: Register domains in key markets if you plan to expand

5. Set up your business structure

Your business structure determines how you pay taxes, your personal liability, and how you can raise money. Common options include sole proprietorship, LLC, partnership, and corporation.

This decision affects your taxes, legal protection, and growth opportunities. Consult an accountant or lawyer to choose the structure that fits your business goals and risk tolerance. You will also have ongoing compliance duties. For example, IRS regulations require you to report changes within 60 days for the responsible party associated with your Employer Identification Number (EIN).

6. Ensure that your business will eventually be profitable

Profitability analysis determines whether your business can generate more revenue than expenses over time. This analysis is crucial for securing funding and making informed business decisions.

How to assess profitability:

• Create financial projections: Use accounting software to forecast revenue and expenses
• Calculate break-even point: Determine when your business will become profitable
• Get professional review: Have an accountant validate your assumptions and projections
• Estimate startup costs: Review our guide to startup business costs for comprehensive expense planning

7. Set up a business bank account

A business bank account keeps your personal and business finances separate, which is essential for tax compliance, legal protection, and professional credibility.

Essential business accounts:

• Business checking account: For daily operations and expense tracking
• Business savings account: For tax payments and emergency funds
• Business credit card: To build business credit and track expenses
• Payment processing: PayPal or similar services for customer payments

8. Arrange business insurance

Business insurance protects your company from financial losses due to lawsuits, property damage, and other risks that could threaten your business survival.

Common insurance types:

• General liability: Protects against customer injury claims
• Professional liability: Covers errors and omissions in your services
• Property insurance: Protects equipment, inventory, and facilities
• Workers' compensation: Required if you have employees

Consult with an insurance broker to determine the right coverage for your industry and risk level.

9. Register for taxes

Tax registration establishes your business with federal and state tax authorities, allowing you to operate legally and avoid penalties.

Required registrations:

• Federal EIN: Employer Identification Number from the IRS, which you can apply for using an online tool that is available Monday to Friday from 7 a.m. to 10 p.m. Eastern time.
• State tax ID: For state income and sales tax obligations
• Local permits: City or county business licenses as required
• Sales tax permit: If you sell taxable goods or services

Complete these registrations early to avoid delays in opening bank accounts or hiring employees, especially since you can only apply for 1 EIN per day for each responsible party.

10. List the items that can be tax deductible expenses

Office rent, equipment costs, and internet costs may all be tax-deductible. Talk to your accountant to make sure you claim all eligible expenses.

11. Create your website

Use the website domain name you have already registered if possible. Services such as Squarespace, WordPress, and Onepager can help you get online quickly. You can always refresh and improve your site later.

12. Create social network accounts

Different businesses have different social media needs. You might need a Facebook page and a LinkedIn profile – or you may only need a Twitter account. Research your competitors or ask your mentor to see what will work for your business. Look at companies you admire for inspiration.

13. Ask people to promote you online

Contact people in your social networks. Tell them about your new business. Ask them to share your website link with their networks.

14. Find the right employees

Hiring the right employees helps your business grow. Even if you start with just one or two people, choose carefully.

15. Think about how you'll use technology

Nearly all companies use technology. Think about whether you need laptops, tablets, smartphones – or all of these. Talk to local IT firms if you are not sure.

16. Choose your business applications

Google Docs and Microsoft 365 are powerful and intuitive online applications. Cloud-based software lets you access your data from anywhere, at any time.

17. Keep your data safe

Protect your business by keeping your data safe. Use cloud-based software for added security and peace of mind.

Build resilience for long-term success

Entrepreneurial resilience is your ability to adapt, learn, and persist through business challenges. Building this mindset helps you navigate obstacles and capitalize on opportunities.

Strategies for business resilience:

• Embrace continuous learning: Stay updated on industry trends and best practices
• Build strong relationships: Maintain connections with mentors, peers, and customers
• Monitor key metrics: Track financial performance and customer satisfaction regularly
• Plan for setbacks: Maintain emergency funds and backup strategies
• Stay adaptable: Be willing to pivot your approach based on market feedback

This checklist gives you a strong foundation, but you succeed by acting consistently, making smart decisions, and building the right team.

FAQs on starting a business

Here are common questions and answers you might have about starting your business.

How do I start my own business with no money?

Starting a business with no money is challenging but possible. Focus on service-based ideas that use your existing skills, such as consulting, writing, or design. You can also use free online tools for marketing and build your customer base through social media and word-of-mouth before investing in paid resources.

What is the easiest business to start?

The easiest businesses to start usually have low startup costs and do not need specialized inventory or a physical location. Consider online services such as freelance writing, social media management, or virtual assistance. You can also resell items online or offer local services like pet sitting.

Is $1000 enough to start a business?

Yes, $1,000 can be enough to start many types of small businesses, especially service-based or online ventures. Use the funds for essential costs such as business registration, website hosting, and basic marketing materials. Create a detailed budget and prioritize spending on things that help you find your first customers.

What business has a 90% success rate?

No business has a guaranteed 90% success rate. Success depends on many factors, such as market demand, management, and economic conditions. Businesses in stable, essential industries like healthcare services or property management often have higher success rates. Franchises can also offer a higher chance of success because of their proven business models and support systems.