When starting a business, it can be easy to accumulate a lot of debt. The same applies to growing an existing business. If you can leverage personal resources, minimize expenses, and utilize available tools and guidance, you can build a business while remaining mindful of your finances.
The U.S. Small Business Administration (SBA)* has a great list of ten steps to start your business, which includes the following:
1. Conduct market research
2. Write your business plan
3. Fund your business
4. Pick your business location
5. Choose a business structure
6. Choose your business name
7. Register your business
8. Get federal and state tax IDs
9. Apply for licenses and permits
10. Open a business bank account
Market Research and Business Plan
Market research can help you avoid taking on too much debt by helping you understand your target customers. You can learn about customer needs as well as details about your competitors. What you learn can help prevent you from wasting money on unproven assumptions. Save money by using free or low-cost tools like online surveys, competitor website analysis, and publicly available data from sources like the SBA. You can also conduct interviews or focus groups for little to no cost to gain additional insights. The more you learn about your market, the better decisions you'll be able to make, which can translate to money saved.
Your market research efforts can help inform your business plan, which should outline your goals, target market, competitive landscape, marketing strategies, and financial projections.
Funding
When it comes to funding your business, there are several options, including self-funding, crowdfunding, venture capital from investors, and of course, small business loans.
"If you want to retain complete control of your business, but don’t have enough funds to start, consider a small business loan," says the SBA.** "To increase your chances of securing a loan, you should have a business plan, expense sheet, and financial projections for the next five years. These tools will give you an idea of how much you'll need to ask for, and will help the bank know they’re making a smart choice by giving you a loan."
Speak with a representative from Nevada State Bank about financing options. These may include business term loans, SBA loans, equipment financing, and business lines of credit, as well as offerings that can help you grow your business, such as business credit cards, checking accounts, and digital banking.
Picking a Location
Choosing the right location can make a big difference in managing your costs. It influences your day-to-day expenses and your ability to effectively reach customers, which can lead to increased revenue. When selecting a location, consider your target market’s behavior and how it aligns with your business model. Avoid overspending on space or features you don’t truly need.
Structure, Name, Registration, Licenses and Permits
Choosing a business structure that fits your goals is an important early step. Common options include sole proprietorships, partnerships, limited liability companies (LLCs), and corporations. Each has different requirements and considerations, so take time to explore which one aligns best with your needs.
When selecting a business name, aim for something that is memorable, relevant to your brand, and not already in use. It’s a good idea to check name availability through resources like the U.S. Patent and Trademark Office (USPTO) and your state’s business registry.
Once you’ve chosen your structure and name, you’ll need to register your business with the appropriate state and federal agencies. This may include obtaining an Employer Identification Number (EIN), a state tax ID, and any licenses or permits required for your industry. These steps can help lay a strong foundation for getting your business up and running.
Open a Business Bank Account
Speak with a Nevada State Bank representative, who can help you explore solutions tailored to your business needs. Get in touch with one of our bankers to get started.
* https://www.sba.gov/business-guide/10-steps-start-your-business
** https://www.sba.gov/business-guide/plan-your-business/fund-your-business
