Becoming an Official Business
Now that you’ve identified ways that your skills can turn into a business and you’ve taken steps to future-proof your business so that AI is an advantage, does it feel like time to officially start?
Make Sure the Idea is Feasible
Before you spend money, be clear about the problem you solve and who you solve it for. Use this simple formula: “I help [specific customer] solve [specific problem] by providing [product or service].” Define your ideal customer as specifically as possible. Consider age, income, location, education, interests, or other traits that affect buying decisions. The clearer your target, the easier it is to reach the right people.
Know Your Competition – and Your Difference
Study your competitors. Is the market crowded? What will make customers choose you? San Antonio has thousands of Mexican food restaurants, yet many thrive because they are known for something specific: great tortillas, memorable salsa, excellent service, or a strong neighborhood following. Define what makes your business different before you invest heavily.
Choose the Right Planning Tool
You may not need a full business plan unless you are seeking a loan or investment. For many small businesses, a one-page plan or Lean Canvas is enough to get started. At minimum, answer three questions: What are you selling, and who will buy it? How will customers find and choose you? What will it cost to start and operate, and how much can you realistically earn? Also decide how much you can invest and whether you have enough personal income or savings to support yourself until the business becomes profitable.
If you have determined there is a market for what you are selling, then move to making it official.
Choose a Strong Business Name
A good name should be:
- Memorable and easy to say
- Easy to spell and search
- Relevant to your customers
- Flexible enough to grow with the business
- Available online and for registration
- Free of serious trademark conflicts
Try this test: Tell several potential customers the name without explaining the business. Ask, “What would you expect this company to sell?” Their answers may reveal whether the name is clear. Their answers can be surprisingly educational.
Think Beyond the Logo
A branding professional can help you shape your name, message, positioning, and visual identity – not just design a logo. Because business owners are often too close to their own ideas, outside perspective can prevent expensive mistakes.
Choose a Business Structure
Depending on your situation, you might operate as a sole proprietorship with an assumed name (DBA) or form an LLC, S corporation, or C corporation. Your choice can affect taxes, liability, and legal requirements, so professional advice from an attorney or CPA may be worthwhile.
Helpful resources: SBA guidance on business structure and the State of Texas “Start a Business” guide.
Remember: Forming an LLC or corporation does not replace business insurance. Insurance is what protects business property and helps cover many operating risks.
Follow the Steps in the Right Order
1. Choose your business structure 2. Register the business 3. Get an EIN from IRS.gov 4. Obtain required licenses, permits, and tax accounts 5. Open a business bank account 6. Purchase appropriate insurance 7. Begin operating
You can apply for an EIN directly through IRS.gov at no charge. Be cautious of websites that charge separately for an EIN unless the fee is clearly part of a broader formation service.
Texas Veteran-Owned Businesses
Texas veterans may qualify for certain business-formation benefits, including a waiver of the filing fee. The process may require veteran verification and supporting documentation. Check current requirements with the Texas Veterans Commission, Texas Comptroller, and Texas Secretary of State before filing.
Next month, we’ll dig into all the numbers.
If you want one-on-one guidance, please connect with me at Launch SA. Click on Request Assistance and specify you want to meet with me.