19 Steps Starting a Business Checklist that Cannot be Missed

Starting a small business is a journey to turn dreams into reality but it is not without challenges. In this article, let's learn about starting a business checklist with NextSky to confidently conquer your startup journey.

19 steps starting a business checklist

1. Research the market

To build a sustainable business, deeply understand the market through customer needs, habits, and purchasing motivations. Here are key steps for a complete picture:

• Create customer personas using demographic and psychographic data.
• Analyze competitors to identify strengths and market gaps.
• Use tools like SEMrush or Ahrefs to uncover trends and keyword opportunities.
• Validate real demand to ensure your product or service solves specific problems.

For example, know whether customers prioritize fast shipping, competitive pricing, or eco-friendly products for an online store to deliver the right experience.

Read more: How to Create a Successful Business Plan Template in 9 Steps

2. Validate your business idea

Before investing time and money, ensure your niche has market potential. The best approach is to create a minimum viable product (MVP) or prototype to gather feedback and refine your offering. Action steps:

• Develop a simple, low-cost MVP (e.g., a basic product version or landing page for a service).
• Test with a small group of potential customers to verify demand.
• Crowdfunding platforms like Kickstarter or Indiegogo can be used to gauge interest and raise initial funds.
• Iterate based on real-world feedback to improve your product.

Additionally, run surveys on social media or use beta testing groups for honest insights. For online businesses, tools like Hotjar can track user behavior on your MVP website to drive valuable improvements.

3. Build a comprehensive business plan

A business plan is your roadmap, outlining goals, strategies, and financial projections. It’s also critical for attracting investors and ensuring long-term sustainability.

• Choose a suitable business structure (sole proprietorship, LLC, or corporation).
• Define your mission, vision, and core values that set you apart.
• Create detailed financial forecasts: startup costs, projected revenue, and break-even point.
• Develop marketing and sales strategies based on market research.

Use templates from the Small Business Administration (SBA) or tools like LivePlan to save time. Review and update your plan quarterly to adapt to market changes.

Read more: Top 10 Best Business Credit Cards for Startups Today

4. Create a memorable brand identity

Your brand is more than a logo. It’s the personality and values that connect with customers. A strong brand builds trust, recognition, and lasting impressions.

• Choose a brand name: Pick a unique, memorable name, checking availability with the USPTO and domain registries.
• Design visuals: Create a consistent logo, color palette, and typography.
• Define tone: Select a communication style (professional, friendly, or bold) that suits your audience.
• Standardize materials: Develop business cards, email signatures, and social media profiles for consistency.

For e-commerce, ensure your brand shines through your website and packaging. Tools like Canva or Adobe Express can help create professional visuals on a budget.

5. Secure funding

Funding is the foundation for launching and growing your business. Choosing the right financial sources ensures a smooth start and long-term stability. Steps to take:

• Calculate startup costs: equipment, inventory, and marketing expenses.
• Explore funding options: self-funding, small business loans, grants, crowdfunding, or angel investors.
• Prepare a clear pitch with financial projections and your unique value proposition.
• Tap into local or SBA programs for small business support.

Platforms like Fundable or StartEngine connect you with broader investor communities. For e-commerce, consider Shopify Capital for flexible financing.

6. Choose the proper business structure

Your business structure impacts taxes, legal liability, and operations. Standard options include sole proprietorship, LLC, partnership, or corporation. Steps to follow:

• Research the pros and cons of each structure with a legal advisor.
• Register your business with the appropriate authority (e.g., state secretary).
• Obtain an Employer Identification Number (EIN) from the IRS for tax purposes.

Helpful tip: An LLC often offers flexibility and personal liability protection for small businesses. Consult a lawyer to ensure compliance with state regulations.

Read more: Do You Need a Business License to Sell on Shopify

7. Obtain necessary permits and licenses

Compliance with local, state, and federal regulations is mandatory. Requirements vary by industry and location, so prepare thoroughly:

• Identify industry-specific permits (e.g., food safety for restaurants or professional licenses for specialized services).
• Check local regulations: Contact city or county offices for zoning laws, business licenses, and related requirements.
• Use SBA’s online tools to determine required permits.

Pro tip: In Georgia, check the Georgia Secretary of State’s website for specific requirements, like sales tax permits or professional licenses.

8. Protect intellectual property

Safeguarding your brand and innovations ensures a competitive edge and prevents legal disputes. Steps to take:

• Check the USPTO database to ensure your name and logo are unique.
• File for trademarks to protect your brand identity.
• Apply for patents if you have unique products or processes.
• Use nondisclosure agreements (NDAs) for trade secrets.

Pro tip: Hire a patent attorney for complex filings to avoid costly errors. For online businesses, ensure website content is copyrighted.

9. Set up business finances

A well-organized financial system is key to managing cash flow and complying with tax regulations. To establish a strong foundation:

• Open a business bank account to separate personal and company finances.
• Apply for a business credit card to build credit and track expenses.
• Accounting software like QuickBooks or Wave can be used for real-time financial tracking.
• Obtain a sales tax permit as required by your state.

Read more: How to Make a Business Plan Financial Projections from A-Z

10. Build a reliable supply chain

A stable supply chain ensures timely delivery and consistent quality for product-based businesses. Steps to start:

• Research suppliers on platforms like Alibaba, ThomasNet, or Oberlo.
• Negotiate terms for pricing, delivery, and quality standards.
• Use inventory management software to track stock levels.
• Build relationships with multiple suppliers to minimize risks.

Pro tip: For e-commerce, consider dropshipping to reduce initial inventory costs. Shopify integrates seamlessly with dropshipping platforms.

11. Price your product or service

Pricing directly affects profitability and how customers perceive your brand. To create an effective pricing strategy, balance value, costs, and market expectations:

• Analyze production costs, competitor pricing, and market demand.
• Test pricing models like cost-plus, value-based, or tiered packages.
• Monitor customer feedback and adjust pricing as needed.

Run A/B tests on your website for online businesses to find the optimal price point for higher conversions.

12. Choose sales channels

Selecting the proper sales channels is crucial for reaching customers effectively:

• Build an e-commerce website or use platforms like Shopify or Etsy for online sales.
• For in-person sales, explore retail spaces or pop-up shops.
• Integrate omnichannel strategies for a seamless customer experience.

Optimize your e-commerce site for SEO and mobile usability to boost visibility and sales. Use high-quality Shopify themes from NextSky to create a high-performing website.

13. Design product packaging

Packaging protects your product and elevates your brand.

• Brand-aligned design: Ensure packaging reflects your style, values, and personality.
• Industry compliance: Meet standards, like food safety regulations.
• Sustainability: Use eco-friendly materials to attract environmentally conscious customers.

Create a unique “unboxing” experience to encourage social media sharing. Tools like PackSavvy can help estimate packaging costs efficiently.

14. Develop a marketing strategy

Clever marketing boosts brand awareness and drives sales. Focus on channels that reach your target audience effectively:

• Identify high-ROI channels like social media, email marketing, or PPC ads.
• Create a content calendar for consistent messaging.
• Analytics tools like Google Analytics can be used to track campaign performance.
• Leverage SEO for organic visibility.

Read more: Business Model vs. Business Plan: What You Need to Know

15. Build a professional website

Your website is your digital storefront, creating the first impression for customers. To maximize impact, ensure it’s user-friendly, secure, and conversion-optimized:

• Choose an e-commerce platform like Shopify for easy setup.
• Ensure mobile usability, fast loading, and SEO-friendly design.
• Integrate secure payment gateways like PayPal or Stripe.
• Please set up a Google My Business profile for local SEO.

Use NextSky’s high-quality Shopify themes for a fast, SEO-optimized, high-converting website.

16. Select essential business software

The right tools streamline operations and improve efficiency:

• Choose software for accounting (QuickBooks), CRM (HubSpot), and inventory management (TradeGecko).
• Ensure tools integrate with your e-commerce platform.
• Train your team to maximize software benefits.

17. Hire and train staff

Hiring staff is a key step to efficient operations if the budget allows. Practical steps:

• Create detailed job descriptions and conduct thorough interviews.
• Comply with labor laws, including workers’ compensation and tax forms.
• Provide training to align staff with your brand values.

For efficiency, start with freelancers or part-time staff to manage costs. Platforms like Upwork connect you with skilled professionals.

18. Plan your launch

A memorable launch creates buzz and attracts customers:

• Announce your launch on social media, local press, and email campaigns.
• Offer promotions like discounts or giveaways to drive traffic.
• Conduct a soft launch to test operations and gather feedback.

Pro tip: For e-commerce, use countdown timers or pre-launch campaigns to build anticipation. Shopify’s marketing tools can automate these efforts.

19. Track and optimize post-launch

The first 90 days are critical for refining operations and fueling growth:

• Monitor key metrics like sales, website traffic, and customer feedback.
• Optimize your website and marketing based on analytics.
• Build customer relationships through loyalty programs or follow-up emails.

Pro tip: Use tools like Google Analytics and Hotjar to identify areas for improvement. For e-commerce, focus on reducing cart abandonment rates.

Mistakes to avoid: lessons from real-world experience

Starting a business is inspiring but filled with potential pitfalls. Avoid these common mistakes for an intense, sustainable journey:

• Skipping market research: Many entrepreneurs dive into ideas without market validation, like driving through fog without a map. Instead, survey demand, willingness to pay, and why customers choose you via social media, forums, or Google Forms.
• Ignoring legal requirements: Overlooking business licenses or trademark protection can lead to costly risks. An unregistered bakery or logo risks copying. Use USPTO and SBA resources to ensure compliance and operate confidently.
• Neglecting marketing: Even the best product fails if it is unknown. Leverage Instagram, TikTok, email marketing, and SEO-optimized websites with NextSky’s Shopify themes. A 30-second TikTok video can drive thousands of views and spark product virality.
• Moving too fast without testing: Passion can lead to rushed launches and costly errors. Conduct a soft launch with friends or a small customer group to test processes, from ordering to delivery.

Starting a small business is an inspiring journey where every step is a milestone to be proud of. NextSky's starting a business checklist can help you build lasting success.!