We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What Are the Best Tips for Opening a Small Business?

By K. Testa
Updated May 17, 2024
Our promise to you
WiseGeek is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At WiseGeek, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject-matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

When opening a small business, a common first step is to develop a business plan. Having a clear outline can help with the steps that follow, such as calculating the amount of money needed to start the business and attempting to secure funding. Once the plan is laid out and the funding issues are addressed, one can attend to such details as choosing the location and handling the logistics regarding furniture, equipment and other supplies. Establishing the business as a legal entity is another step — one must often register one's business and obtain a license, for instance. Finally, the new business owner should advertise and market the new enterprise, along with hiring staff members, if necessary.

Many people consider the business plan to be a crucial first step when opening a small business. Not only does it paint a clear picture for potential funders and customers, but it also helps the business owner remain accountable for carrying out his stated objectives. The plan typically includes both short-term priorities and long-term goals.

Someone opening a small business usually needs access to start-up funds and money for ongoing expenses. Some typical sources of financing to start a business include personal funds, private investments, and small business loans. They might also include using credit cards or acquiring loans for equipment and daily operating costs.

Next, the business owner should decide whether to rent or purchase office space, or to work out of his home. He should weigh the pros and cons of each scenario, depending on the type of business. Once a location is chosen, he can arrange to get furniture and basic equipment, such as a computer, a telephone, and a fax machine.

In most places, there also is a legal obligation to register a new business. Prior to opening a small business, one should research the requirements and apply for any necessary licenses or permits. In the U.S. for instance, potential business owners have a wealth of information available to them through the Small Business Administration. Next, the owner can register the organization and its name, and then obtain tax identification numbers. At this stage, he can also decide what form the business will take — some possible options include a sole proprietorship or a limited liability company (LLC).

Opening a small business usually requires some effort to get the word out about its services as well. The owner might advertise in local newspapers or business directories, along with leaving business cards or fliers in appropriate locations. Fortunately, networking and social media marketing are generally less expensive options, and often are preferable to incurring printing and mailing costs. Depending on the nature of the small business, the new owner might also need to recruit and hire staff members. Some people, however, wait until the business is off the ground and has made a profit before hiring employees.

WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Link to Sources
Discussion Comments
WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.