Starting a business: your 17-step launch checklist

Published Saturday 7 March 2026

Table of contents

• Your checklist for starting a business
• Validate your business idea
• Conduct market research
• Find a business mentor
• Define your unique selling point
• Create a business plan
• Understand your startup costs and funding options
• Choose your business structure and register your business
• Register for taxes and get your tax ID
• Get the necessary licenses and permits
• Set up a business bank account
• Set up your accounting system
• Arrange business insurance
• Register web domains and trademarks
• Create your website and establish your online presence
• Choose your business technology and applications
• Find the right employees
• Plan your launch and first customers
• Simplify your business finances with Xero
• FAQs on starting a business

Key takeaways

• Validate your business idea by talking to potential customers about their willingness to pay and testing with a minimum viable product before investing significant time and money.
• Calculate your startup costs across one-time expenses, ongoing costs, and emergency funds, as 66% of entrepreneurs report costs were higher than anticipated.
• Set up proper business foundations early by choosing the right business structure, registering for taxes, obtaining necessary licenses, and opening a separate business bank account to maintain legal and financial clarity.
• Establish your online presence with a professional website using your registered domain name and focus on two to three social media platforms where your target customers are most active.

Your checklist for starting a business

This checklist covers the essential steps to launch your business, from validating your idea to attracting your first customers. A 2025 report found that for 87% of founders, their confidence had improved regarding their business's financial prospects. Use this checklist as a roadmap to avoid costly mistakes and build a strong foundation for growth.

Validate your business idea

Business idea validation confirms that customers will actually pay for your product or service before you invest significant time and money. Skipping this step is one of the most common reasons new businesses fail, as research shows that fewer than a quarter of businesses launched a decade ago are viable large-scale enterprises today.

Test your idea before you launch:

• talk to potential customers: Ask if they would pay for your solution and how much
• research the competition: See who else offers similar products and how you could differentiate
• identify the problem you solve: Make sure there's a real need for what you're offering
• test with a minimum viable product: Start small to gather feedback before scaling

Signs your idea has potential:

• people express genuine interest: Not just polite encouragement from friends and family
• customers are willing to pay: They'll commit money, not just say they would
• the market is large enough: Enough potential customers exist to sustain your business
• you can deliver profitably: Your costs allow for a sustainable margin

Conduct market research

Market research helps you understand your customers, competitors, and industry before you launch. This knowledge reduces risk and helps you position your business effectively.

Research your target market:

• define your ideal customer: Who are they, what do they need, and where do they spend time?
• assess market size: Is the opportunity large enough to support your business goals?
• identify trends: What's changing in your industry that could affect demand?

Analyse your competition:

• list direct competitors: Businesses offering similar products or services
• study their strengths and weaknesses: What do they do well and where do they fall short?
• find gaps in the market: Opportunities where customer needs aren't being met
• understand pricing: See what customers currently pay for similar offerings

Use your research to refine your business idea and identify what will make you stand out.

Find a business mentor

A business mentor is an experienced advisor who provides honest feedback and guidance as you build your business. Having a mentor helps you avoid common mistakes and make better decisions.

Here's where to find one:

• small business associations: Many offer free mentorship programmes
• small business development centres: Government-funded resources for new entrepreneurs
• industry networks: Connect with experienced business owners in your field
• professional advisors: Accountants and business coaches can provide ongoing support

Define your unique selling point

A unique selling point (USP) is what makes your business different from competitors. It answers the question: why should customers choose you?

Define your USP clearly so you can communicate it consistently:

• sum it up in two sentences: Keep your USP concise and memorable
• memorise it: You'll use it when pitching to investors and customers
• test it: Make sure it resonates with your target market

Create a business plan

A business plan is a document that summarises your business as it is now and maps your vision for the future. It guides your decisions and helps you secure funding.

Your business plan should include:

• executive summary: A brief overview of your business concept
• market analysis: Research on your target customers and competitors
• products or services: What you're selling and why it matters
• financial projections: Revenue forecasts, startup costs, and break-even analysis
• operational strategy: How you'll run the business day-to-day

Need help getting started? Use our business plan template to structure your plan.

Understand your startup costs and funding options

Startup costs are the expenses you'll incur before your business starts generating revenue. Understanding these costs helps you plan realistically and secure the right funding, which is critical given that 66% of entrepreneurs report their costs were higher than anticipated.

Calculate your startup costs by category:

• one-time costs: Equipment, initial inventory, legal fees, branding
• ongoing costs: Rent, utilities, salaries, software subscriptions, marketing
• emergency fund: Reserve three to six months of operating expenses

Explore funding options based on your needs:

• personal savings: The most common source for small business funding
• small business loans: Available from banks and government programmes
• investors: Angel investors or venture capital for high-growth businesses
• grants: Government or industry grants that don't require repayment
• crowdfunding: Raise money from supporters through online platforms

Use accounting software to run profit and loss forecasts before you launch. An accountant or financial advisor can help you assess whether your business model is viable.

Review our guide to startup business costs to estimate your expenses.

Choose your business structure and register your business

Your business structure determines how you pay taxes, your personal liability, and the paperwork required to operate. Choose the right structure before you register.

Common business structures include:

• sole proprietorship: Simple to set up, but you're personally liable for business debts
• limited company: Separates your personal and business finances, offering liability protection
• partnership: Shared ownership and responsibilities between two or more people

Once you've chosen your structure, complete these registration steps to make your business official:

1. Register your business name with the relevant government agency
2. Obtain your business registration certificate
3. Apply for any required industry-specific registrations

An accountant can help you choose the structure that best fits your situation.

Register for taxes and get your tax ID

Tax registration establishes your business with the tax authorities and allows you to operate legally. Complete this step early to avoid delays when opening bank accounts or hiring employees.

Key tax registrations to complete:

• tax identification number (TIN): Your unique identifier for all tax filings
• employer identification number (EIN): Required if you plan to hire employees
• sales tax registration: Necessary if you sell taxable goods or services
• payroll tax accounts: Set up if you'll have employees on your payroll

Register with your local tax office as soon as you've established your business structure. Keep records of all registration documents for future reference.

Get the necessary licenses and permits

Business licenses and permits give you legal permission to operate in your industry and location. Requirements vary depending on what you do and where you're based.

Research your requirements:

• general business licence: Most businesses need a basic licence to operate
• professional licences: Required for regulated industries like healthcare, finance, or construction
• health and safety permits: Necessary for food service, manufacturing, or businesses with physical premises
• zoning permits: Confirm your business location is approved for commercial use

Follow these steps to obtain the necessary licences for your business:

1. Check federal, state or regional, and local requirements for your business type
2. Apply for each required licence or permit
3. Pay any associated fees and complete inspections if needed
4. Display licences as required and renew them on schedule

Contact your local business registration office or industry association for guidance specific to your situation.

Set up a business bank account

A business bank account keeps your personal and business finances separate. This makes bookkeeping easier, simplifies tax filing, and protects your personal assets.

Why you need a separate business account:

• clearer records: Track business income and expenses without mixing personal transactions
• professional image: Pay suppliers and receive payments under your business name
• tax compliance: Simplify reporting and reduce audit risk
• liability protection: Maintain the legal separation between you and your business

To open a business bank account, you'll typically need your business registration documents, identification, and proof of address. Consider also setting up a business credit card and payment processing account.

Set up your accounting system

An accounting system tracks your income, expenses, and cash flow so you can make informed business decisions. Setting this up early keeps your finances organised from day one.

Choose accounting software that:

• automates routine tasks: Bank reconciliation, invoicing, and expense tracking
• provides real-time insights: See your cash position and financial health at a glance
• keeps your data secure: Cloud-based platforms with automatic backups
• scales with your business: Features that grow as your needs change

Cloud-based platforms like Xero let you access your data anywhere, send invoices, track expenses, reconcile transactions, and generate reports. Good accounting software saves time and helps you stay on top of tax obligations.

Talk to an accountant about which expenses are tax-deductible so you can track them properly from the start.

Arrange business insurance

Business insurance protects your company against financial losses from accidents, lawsuits, or unexpected events. Even small businesses need coverage to operate safely, and the U.S. Small Business Administration notes that the federal government requires every business with employees to have workers' compensation, unemployment, and disability insurance.

Consider these common types of business insurance:

• general liability insurance: Covers claims of injury or property damage
• professional liability insurance: Protects against claims of negligence or errors
• property insurance: Covers damage to your equipment, inventory, or premises
• workers' compensation: Required if you have employees, covering workplace injuries

Talk to an insurance broker to find the right coverage for your industry and risk level. Compare quotes from multiple providers to get the best value.

Register web domains and trademarks

Domain registration secures your website address before someone else claims it. Trademark registration protects your business name and brand identity.

Take these steps to protect your brand:

• check domain availability: Search for your business name with common extensions like .com, .co.uk, or .hk
• register multiple variations: Secure similar domain names to prevent confusion
• research existing trademarks: Make sure your business name doesn't infringe on others
• talk to a lawyer: Get professional advice on trademark protection in your region

Create your website and establish your online presence

Your online presence includes your website and social media profiles. Together, they help customers find you, learn about your business, and connect with your brand.

Build your website:

• use your registered domain name: Keep your branding consistent
• choose a website builder: Services like Squarespace or WordPress get you online quickly
• include essential information: What you offer, how to contact you, and why customers should choose you
• start simple: You can refresh and improve your site as your business grows

Set up social media accounts:

• research your audience: Find out which platforms your target customers use
• focus on two or three channels: Facebook, LinkedIn, Instagram, or others relevant to your industry
• look at competitors: See what works for businesses similar to yours
• be consistent: Use the same branding and messaging across all platforms

Choose your business technology and applications

The right business technology helps you work efficiently, collaborate with your team, and keep your data secure. Many founders are increasing their spend on AI after finding it delivers a higher return on investment (ROI) than traditional tools.

Prioritise cloud-based tools so you can access information from anywhere.

Essential software categories to consider:

• communication tools:Google Workspace or Microsoft 365 for email, documents, and collaboration
• accounting software: Track finances, send invoices, and manage cash flow
• project management: Organise tasks and deadlines across your team
• customer relationship management (CRM): Track leads and manage customer interactions
• industry-specific tools: Software tailored to your business type

Keep your data safe:

• choose cloud-based software: Automatic backups protect against data loss
• use strong passwords: Enable two-factor authentication where available
• back up regularly: Even with cloud storage, maintain additional backups of critical data

Find the right employees

Hiring the right employees drives your business's success. For many modern startups, this includes contractors, with one survey finding 61% of companies are reliant on contract talent. Even if you start with just one or two team members, choosing well makes a significant difference.

Before you hire:

• define the role clearly: Write a job description that outlines responsibilities and required skills
• consider your budget: Factor in salary, benefits, taxes, and training costs
• check legal requirements: Understand employment laws, contracts, and payroll obligations

When hiring:

• look for shared values: Choose people who align with your vision and work ethic
• assess skills and attitude: Both technical ability and cultural fit matter
• start small if needed: Consider part-time or contract workers before committing to full-time hires

Learn more about hiring employees for your small business.

Plan your launch and first customers

A launch plan outlines how you'll attract your first customers and test your business systems. Planning this step helps you start generating revenue sooner.

Develop your launch strategy:

• soft launch first: Test your products, services, and processes with a small group before going public
• set realistic goals: Define targets for your first month, quarter, and year
• create introductory offers: Special promotions can attract early customers and generate word-of-mouth
• build partnerships: Collaborate with complementary businesses to expand your reach

Attract your first customers:

• tell your network: Let friends, family, and professional contacts know about your new business
• use social media: Share your launch story and invite people to follow your journey
• collect feedback: Ask early customers what's working and what could improve
• track results: Monitor which channels bring in the most customers

Simplify your business finances with Xero

Starting a business involves juggling many tasks at once. Keeping track of your finances shouldn't add to the complexity.

Xero's cloud-based accounting software helps you:

• automate bookkeeping: Spend less time on admin and more time growing your business
• see your cash flow in real time: Make informed decisions with up-to-date financial data
• stay on top of taxes: Track deductible expenses and prepare for tax time
• send invoices and get paid faster: Professional invoicing with online payment options
• access your data anywhere: Cloud-based platform works on any device

From invoicing customers to reconciling bank transactions to generating financial reports, Xero centralises everything in one secure platform.

Ready to take control of your business finances? Get one month free and see how Xero makes accounting simple.

FAQs on starting a business

Still have questions about launching your business? Here are answers to common concerns.

How can I start a business if I have no money?

Start with a low-cost business model that uses your existing skills. Consider service-based businesses, freelancing, or online ventures that require minimal upfront investment. Bootstrap by reinvesting early profits and explore free resources like government small business programmes.

How long does it take to start a business?

Most businesses take one to six months to launch, depending on your industry and complexity. Simple service businesses can start within weeks, while businesses requiring licences, permits, or significant setup may take longer.

Do I need a business plan if I'm just starting small?

Yes, even a simple one-page plan helps you clarify your goals, understand your costs, and make better decisions. You can expand it later as your business grows.

What's the biggest mistake people make when starting a business?

Skipping market research. Many new business owners assume customers will want their product without validating demand first. Test your idea with potential customers before investing significant time or money.

Can I start a business while working full-time?

Yes. Many entrepreneurs start their businesses as side projects while keeping their day job. This approach provides income stability while you build your customer base and test your business model.