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Starting · 9 min read

How to start a small business: the 12-step checklist

Most launch problems come from doing the right steps in the wrong order. Here's the sequence that keeps costs low and risk visible.

In this guide: Validate · Plan · Money · Structure · Register · Banking · Tax · Insurance · Brand · Website · Launch · Track

1. Validate demand before you spend

Before you buy equipment or sign a lease, prove that people will pay. Pre-sell to ten customers, take deposits, run a small paid test, or offer the service manually to a handful of clients. Validation answers the only question that matters at this stage: will someone exchange money for this, at a price that works for you?

2. Write a one-page plan

You don't need a 40-page document unless a lender asks for one. You do need clarity on six things: the customer, the problem, your offer, your price, how customers will find you, and what it costs to deliver. One page forces decisions; long plans often hide them.

3. Do the money math

Estimate one-time and monthly costs with the startup cost estimator, then check how many sales you need each month with the break-even calculator. If the break-even number looks unrealistic for your market, change the model now — it is far cheaper than changing it later.

4. Choose a business structure

Sole proprietorship, partnership, limited liability company or corporation — each affects your personal liability, taxes and paperwork. Our guide to choosing a business structure walks through the trade-offs. When liability or tax stakes are high, a one-hour consultation with an accountant or lawyer is money well spent.

5. Register the business and name

Register with your state, province or national company registry, and file a trade name ("doing business as") if you operate under a name that differs from the legal one. Check trademark databases before committing to the name; use the name generator if you're still deciding.

6. Open a separate business bank account

Keeping business and personal money apart makes bookkeeping, taxes and borrowing dramatically easier. It also helps preserve the liability protection of an LLC or corporation.

7. Register for taxes and permits

Depending on where you are, you may need a tax ID number, sales tax or VAT/GST registration, payroll registration if you'll hire, and local business licences or industry permits. Your local government's business portal usually has a permit finder.

8. Get the right insurance

General liability is the baseline for most businesses. Add professional liability if you give advice, commercial property if you own equipment or inventory, and workers' compensation where it is required for employees.

9. Build a simple, consistent brand

A clear name, a logo, two colours and one font are enough to look professional. Consistency across your website, signage and social profiles matters more than an expensive logo.

10. Launch a website and Google Business Profile

Customers check you online before they call. A fast, mobile-friendly site with clear services, prices or price ranges, reviews and a contact form is enough to start. Our guide to building a website that converts covers the essentials.

11. Launch to warm contacts first

Your first customers usually come from people who already know you. Announce the launch personally, ask for introductions, and offer a reason to act now. Then layer in one marketing channel at a time, as described in our local marketing guide.

12. Track five numbers weekly

Cash in the bank, revenue, new leads, conversion rate and outstanding invoices. Reviewing five numbers every week catches problems while they're still small.

Want a second pair of eyes? Get matched with a mentor or consultant who can review your plan before you launch — free to request.

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