How to Start a Small Business: Step-by-Step Guide for First-Time Entrepreneurs

Leah Bryant
12 hours ago
2 min read

🚀 Starting a Small Business? Here's Your Step-by-Step Guide

You’ve got the idea. You’ve got the drive. But now you’re wondering, how do I actually start a small business? You’re not alone—and you’re in the right place.

Whether you’re opening a service-based business, an online store, or a creative brand, this guide breaks down the essential steps to launch successfully.

🧠 1. Define Your Business Idea

Start by identifying the problem you solve or the passion you want to monetize. Then validate it:

Who is your target audience?
Are there similar businesses in your area or online?
Is there demand for what you offer?

📌 Helpful Resource: https://chatgpt.com/

I am going to keep it 100% with you. Learn how to use chatgpt!

📚 2. Choose the Right Business Structure

Your business structure affects taxes, liability, and future growth. Common types include:

Sole Proprietorship
LLC (Limited Liability Company)
Partnership
Corporation

✅ Start simple, but choose one that aligns with your vision and risk tolerance.

📌 Helpful Resource: Compare Business Structures (IRS)

🏢 3. Register Your Business Name + Domain

Once you’ve picked a name, you’ll want to:

Check for availability in your state
Buy the matching domain
Register with your Secretary of State

💡 Bonus Tip: Grab your matching Instagram, Facebook, and TikTok handles while you're at it!

📌 Helpful Resources:

💼 4. Get Licenses, Permits & EIN

Depending on your location and industry, you may need:

Business licenses (city or state)
Seller’s permits or health permits
An Employer Identification Number (EIN)

📌 Helpful Resource: Get Licenses and Permits (SBA)Apply for EIN (IRS)

💳 5. Open a Business Bank Account

Keep business and personal finances completely separate. This builds credibility, makes taxes easier, and protects your personal assets.

Look for accounts with low fees and business features like mobile deposit and invoicing.

📌 Helpful Resource: novo.co Novo

*My personal favorite - I recommend this to all my clients. It's easy to use and customer service is great! AND ITS FREE!

📊 6. Create a Budget & Start Simple Systems

Starting lean is smart. Choose free or low-cost tools to track finances, tasks, and customer interactions.

Begin with:

Google Workspace (emails, docs, storage)
Wave or QuickBooks for bookkeeping
ClickUp or Trello for task management

📌 Helpful Resource: Free Tools for New Businesses (Score.org)

🎯 7. Plan Your First Marketing Moves

Even with no budget, you can begin building your brand:

Create a one-page website with Wix, Squarespace, or Shopify
Set up your Google Business Profile
Post on one or two key social platforms
Offer a referral or discount to early customers

📌 Helpful Resource: Beginner’s Guide to Marketing (Entrepreneur.com)

Subscribe to the LUMO newsletter for updates, guides, and proven strategies to help you work smarter, not harder.