Set yourself up for success from conception to launch. Follow the first four steps you should take when you dream up your next startup idea.
Feel free to jump down to the meat and potatoes or read a quick update on my journey.
Latest from my journey
I opened a business bank account!
Oddly enough, I completely forgot that I needed to register for a tax ID number through the IRS. When I started a nonprofit, that was the number one thing I needed to do to get going. As you might guess, it was a much easier process this go-round. The IRS makes it pretty easy to fill out the necessary paperwork when the entity you are starting will ultimately pay them taxes.
I kind of love that it took me two trips to the bank. I had to come back home and fill out the application. The experience felt very on-brand with my goal of just doing the thing and getting started. I’m working really hard to embrace the adage that perfectionism is the killer of productivity.
I was far from perfect when I ran White River Waterkeeper. But I sure tried. And that tendency not only slowed me down but also gave me an unnecessary amount of anxiety.
Last week, the flu slowed my efforts to keep moving things forward. Mostly, that meant I didn’t have time to crank out as many blog posts as I’d hoped. I did take the time to research various tech and software applications, so it wasn’t a complete wash. Finally, deciding on a CRM, email marketing, and client invoicing platforms felt like progress. Kind of. While I’ve moved past the stage of decision paralysis on those, I still have to figure out how to use two-thirds of those platforms.
Anyway, to prevent this tiny update from being a complete nothing burger, I’m outlining my recommended steps for starting a business from scratch. I would not follow the exact order I’ve taken with this business. However, as the domain and Instagram handle owner of nearly a dozen false starts, I feel confident about the best order that helps you move the needle and not waste unnecessary time and money.
First Four Steps for Startups
1. Start with your product or service idea.
This should seem obvious. It should be the hardest, too. Once you have your idea figured out, don’t worry about getting hung up on the other steps that follow.
2. Decide on a name and claim it
Ideally, you want a name that you can use consistently across all platforms. It’s not a deal breaker if you can’t, but it sure makes life easier when you can. Once you pick your first (and hopefully last, though unlikely) name, you’ll want to move down this list to ensure it’s “unclaimed” by someone else.
a. Is it a registered business in your state?
Google [your state] + registered business search. Don’t click on any of that sponsored crap. Scroll down until you see your Secretary of State’s website. Every state will have a database where you can search for business name availability.
Above is a screenshot of Tennessee’s Secretary of State website, where you can search for business name availability.
Note: YOU’RE NOT REGISTERING RIGHT NOW. You’re just confirming the name is available.
b. Is the domain name free?
Google domain name search or click here. It doesn’t matter what website you use to answer this question. Ideally, you are going to want the .com domain. Again, it’s not a deal breaker if you have to settle for .net. But it probably should be. It’s a deal breaker for me, at least. NOW, LISTEN – YOU ARE NOT GOING TO CLAIM YOUR DOMAIN RIGHT NOW, EITHER! If you’re neurotic and think someone will claim it out from under you this week, then by all means. It’s highly unlikely. But I’ve personally jumped the gun at least a half dozen times, so you’re in good company. If you hold up a sec, I’ll tell you how to save yourself a lot of time and a few bucks.
c. Is the handle available on the social media platforms relevant to you?
If so, go ahead and claim them. You can go down a rabbit hole here to figure out what platforms might be relevant to your business. But don’t overthink this one. What platform(s) do you like to show up on now? If you hate Twitter, X – whatever, you don’t have to start showing up there just because you think you should. Same for TikTok. Sure, you can decide to show up on these platforms whenever you want, but right now, you are just focused on trying to land on a name you can consistently use across your platforms.
You’ll want to dedicate no more than two days to going back and forth to find a name. If you can’t find one you can use consistently everywhere, give up on your dreams now. I’m kidding. Just add a – or . something relevant. Just make sure it’s relevant! Don’t add your state abbreviation if you’re building an online business that operates outside the state in which you live. That’s confusing. No random numbers, either.
Stuck? Ask ChatGPT. Don’t know how to write a good prompt? Read this post.
3. Open a bank account.
Where do you bank now? That’s where you’ll open this bank account. For now, open a new personal bank account, assuming it’s free. If it’s not, you need a new bank. This is what you are going to refer to as your “business account” for now. You will want to write your startup fees off on your taxes. This is also the easiest way to keep track of your business-related expenses and is considered a best practice. Decide on a reasonable amount you are comfortable with to start the business, say $100, and open the account. Or, any time you feel the need to make a business-related purchase, transfer funds over from your personal account and then spend from your business account.
Why not just open an actual business bank account from the beginning? Because you need to register your LLC (or whatever type you choose), which will probably cost you a few hundred dollars, and obtain your IRS tax ID number. When you obtain your tax ID number (properly known as an Employer Identification Number (EIN)) then you have to begin filing quarterly tax forms. And you’re not there yet.
4. Get feedback
Before you move on to starting a website, registering your LLC, or opening a business bank account, you need to get to work building and getting feedback. What is it that you hope to sell? Figure out what you need to do to present your idea to FIVE people. These can be five thought peers who know the industry you’re interested in or five members of your target audience. Or some combination. Either way, start working on the resources you need to get their feedback. Maybe it’s a one-page document you throw together in Microsoft Word. Perhaps you put together a PowerPoint. Maybe you’re insanely articulate, and things are perfectly mapped out in your mind, and you need to pick up the phone and call five people. Whatever you need to explain your idea to five people – that’s what you work on next.
Why? Because I’m assuming you don’t have tons of extra time to waste. Or money. Before you start building your website, you want to make sure you know what you’re even going to put on it. And if you just decided the name of your business three days ago, you probably have a few things left to hash out in that regard. But the main reason is that you don’t even know what you’re doing until you get something on paper (or figurative paper) and can use that to get feedback from others. Chances are good you’ll get feedback that will change the direction, broaden, or maybe narrow the scope of your business. And you know what you’re going to want to do then? Evaluate whether your name still makes sense. And possibly go back to the starting board to decide on a name.
Next Steps
And that’s it! You’re doing the dang thing! This being an iterative process is normal. Just don’t waste time adding unnecessary steps to this iteration.
More steps to come soon. But hopefully, I’ll finish the blog I’ve started on our camper-living days first.