How to Start a Small Business post is sponsored by First Alliance Credit Union
Starting a small business can feel overwhelming, especially if you’re juggling a job and family, but it’s possible to build something great step by step. In this guide, we’ll walk you through a beginner-friendly approach to launching a business, using Daniel’s journey as a relatable example. Since he was 16, Daniel had been mowing lawns in his neighborhood and discovered his passion for landscaping. Now, as a young adult, he’s ready to take it to the next level. We’ll explore how Daniel did it and how you can too.
1. Get Help from Local Resources: Collider
The first step Daniel took was to visit Collider, a local organization that supports new entrepreneurs by providing guidance and resources for business development. Starting a business can feel isolating and confusing, so having support from organizations like Collider is invaluable. They helped Daniel refine his business idea, connected him with other entrepreneurs, and offered a supportive space for him to learn and grow.
At Collider, Daniel received:
- 1:1 mentorship to answer his questions and give him feedback.
- Affordable business education programs to develop his skills.
- Access to a co-working space where he could work on his business plan.
If you’re just starting out, find local organizations like Collider in your community that specialize in helping early-stage entrepreneurs. They can give you the tools you need to turn your idea into a reality.
2. Writing a Business Plan: The Blueprint
After getting advice from Collider, Daniel’s next step was creating a business plan. This is where ideas turn into a structured plan for success. He went to the Small Business Development Center (SBDC), which offers free help to people like Daniel who are just starting out. The SBDC helped him write a business plan and create financial projections to see how much money he’d need to get started and what he could expect in earnings.
When writing your business plan, consider:
- Executive Summary: A short overview of your business and goals.
- Market Analysis: Who are your competitors? What makes you different?
- Financial Projections: How much will you need to start, and how much can you expect to make?
For Daniel, this included budgeting for equipment, like mowers and trimmers, as well as a truck to transport his tools to different worksites.
3. Choosing a Business Structure: Daniel’s LLC
To protect his personal assets and set up his business legally, Daniel chose to form an LLC (Limited Liability Company). This structure is often recommended for new small businesses because it provides personal liability protection while being relatively easy to set up.
To form an LLC:
- Go to your state’s business registration website.
- Pay a small registration fee (usually under $150).
- Choose a business name that isn’t already taken.
- Get an Employer Identification Number (EIN) from the IRS (this is like a social security number for your business).
Daniel’s LLC protected his personal savings from any potential business debts or lawsuits, giving him peace of mind.
4. Securing Funding: A Small Loan for a Big Start
Even though Daniel had been saving money, he needed a little extra to buy a reliable truck for his landscaping business. He became a member of First Alliance Credit Union, where he was able to apply for a small business loan. Credit unions like First Alliance offer more personalized service and lower interest rates compared to traditional banks, which is perfect for someone just starting out.
Daniel used the loan to purchase his truck, which allowed him to expand his service area and take on more clients. If you’re looking for funding, consider these options:
- Small business loans: Often available through credit unions or the Small Business Administration (SBA).
- Grants: Free money (that you don’t have to pay back) available for certain types of businesses.
- Personal savings: It’s always good to use some of your own funds to show commitment.
5. Marketing and Growing: From Local to Larger
Now that Daniel had the essentials—a business plan, an LLC, and a truck—it was time to find more clients. He started small, using social media and word of mouth. Social media platforms like Facebook and Instagram are free and easy ways to advertise locally, especially for businesses like landscaping that rely on a local customer base.
To market your business:
- Create a simple website or social media page where people can learn about your services.
- Offer special promotions to friends and family to get the word out.
- Ask for reviews and referrals.
Daniel also used flyers in local neighborhoods and partnered with a local hardware store to leave his business cards at the checkout counter. Over time, he was able to grow his business from just a few clients to a steady stream of work.
Start a Small Business: You Can Do it!
Daniel’s journey from mowing lawns to running his own landscaping business shows that starting a small business doesn’t have to be overwhelming. By following a few simple steps—getting support from local resources, writing a business plan, securing funding, and marketing—you can turn your idea into a successful venture.
If you’re thinking about starting a business, take a page from Daniel’s book and remember:
- Use local resources like Collider for support.
- Protect your personal assets by forming an LLC.
- Don’t be afraid to seek funding when you need it.
The path to starting a business may seem challenging, but with the right steps, you can turn your dream into reality. Ready to start your own business? First Alliance Credit Union is here to help, offering tailored loan options and business accounts to get you off the ground. Let’s build your future together! Start your business today!
