Starting a business is exciting, and it is very easy to skip the unglamorous parts on the way to the fun ones. A logo and an Instagram handle feel like progress. A conversation with an accountant feels like homework. But the homework is what keeps a new business from running into avoidable trouble in year one.
Here are ten steps worth taking before you open for business. None of them require a business degree.
1. Get clear on the problem you solve
Describe, in one or two sentences, who you help and what changes for them because of your product or service. If you cannot say it simply, customers will have a hard time understanding it too.
2. Test the idea with real people
Friends saying “that’s a great idea” is not validation. People paying you, or at least committing to, is. Talk to potential customers, offer a small paid version, or take pre-orders. Our post on how to validate your business idea quickly walks through practical ways to do this.
3. Run the numbers
Work out what it costs to deliver what you sell, what you need to charge, and how many sales you need each month to cover your expenses and pay yourself. A simple spreadsheet is enough. This step alone changes a lot of pricing decisions.
4. Choose a business structure
Sole proprietorship, LLC, S corp, partnership: each has different implications for taxes, liability, and paperwork. A short conversation with an accountant or attorney is worth it here. See Legal Essentials for Starting a Business for an overview.
5. Register and get the right licenses
Depending on your location and industry, you may need to register your business name, get an EIN from the IRS, and apply for local or state licenses and permits. Your state’s business portal and local Small Business Development Center are good places to check.
6. Separate your business and personal money
Open a business bank account before your first sale. Mixing personal and business money makes bookkeeping painful and taxes harder. Set up a simple bookkeeping system from day one, even if it is just software and a monthly habit.
7. Put basic contracts in place
If you provide services, you need a clear agreement that covers scope, timelines, payment terms, and what happens if things change. A good contract protects both you and your client and prevents a lot of awkward conversations later.
8. Decide how customers will find you
“If you build it, they will come” is not a marketing plan. Decide where your first customers will come from: your existing network, referrals, local events, search, social media, partnerships. Being seen is the first step to being chosen.
9. Plan your runway
Most businesses take longer to become profitable than their founders expect. Know how long you can cover your personal and business expenses while things ramp up, and plan accordingly. Runway gives you room to make good decisions instead of desperate ones.
10. Find your people
Starting a business can be lonely, and new business owners make a lot of mistakes that more experienced ones could have warned them about. Find other business owners to learn from early. That is exactly why WEN exists. Join the WEN Facebook group to ask questions, and come to a WEN Round Table to talk with other women business owners about what is actually working.
You do not have to have everything figured out before you start. But taking these steps first will make the early months a lot smoother.
