11 Things You Need to Do Before Starting a Small Business

April 25, 2025
7 min read
11 Things You Need to Do Before Starting a Small Business

Starting a small business is exciting, but I’ll be honest with you—it’s also a bit terrifying. It’s like standing at the edge of a pool wondering if the water is freezing, even though you know it’s what you want. I’ve been there, taking that leap, and the experience taught me that successful businesses don’t happen without some key groundwork. Skip it, and you could find yourself overwhelmed (trust me, I’ve seen it). But take the time to prepare, and you’ll build something that stands a chance of not just surviving, but thriving.

Here are 11 steps you absolutely need to take before launching your business. Some are practical; others will challenge your mindset in ways you don’t expect. But every single one matters.

1. Confirm Your Why

Before you spend a dime or build a logo, take a moment to ask yourself why you want to start this business. Your motivation is the fuel you’ll lean on when challenges come (and they will). Maybe you want financial independence. Maybe you want flexibility. Or perhaps this idea has been growing inside you for years and you can’t shake it anymore.

But here’s the thing—not every motivation will sustain you long-term. If your “why” is simply that you dislike your current job, starting a business may lead to more frustration than freedom. Get clear on your purpose, and ensure it’s tied to something deeper than convenience.

2. Research the Market (For Real)

It’s tempting to assume you already know everything about your industry because you’ve worked in it or been a faithful observer. But surface-level knowledge isn’t enough. You need to dig deep. What’s the demand for your product or service? Who are your competitors, and what gaps do they leave that you could fill?

Here’s an example. When I was researching my current business, I assumed my target audience would be just like me. Spoiler alert: they weren’t. All the assumptions I had about pricing, branding, and marketing shifted once I invested in real data. Market research might sound dull, but it’s hugely clarifying.

“Small businesses that conduct regular market research are 93% more likely to survive past their first year.”

If you don’t know where to begin, start with online surveys, competitor analysis, or even a good old-fashioned Google deep-dive. You’ll discover insights you didn’t even think to look for.

3. Write a Business Plan That Grounds You

I know. The idea of writing a business plan might feel intimidating (or, if you’re anything like me, a little “corporate”). But I promise, this doesn’t have to be some formal binder you present to the bank. A strong business plan is for you. It’s the map that keeps you focused when options, offers, or distractions pile up.

At the very least, include these essentials:

  • What you’re offering (and to whom).
  • Startup costs and long-term financial projections.
  • Marketing strategies and sales goals.

Creating a plan doesn’t mean it’s set in stone. Businesses evolve, but a solid starting point will give you the clarity and confidence to handle curveballs.

4. Sort Your Finances Before You Start

This step is crucial. You don’t want a surprise overdraft or unpaid bill killing your momentum two months in. Start by figuring out how much money your business will need upfront and month-to-month to sustain itself. This includes expenses you might forget, like taxes, insurance, software subscriptions, or even replacing that ancient laptop you’ve been holding onto.

If you’re like me, budgeting might not come naturally, but there’s no shame in using tools or getting help. I hired a bookkeeper early on, and it was easily one of the best investments I’ve made for my peace of mind.

Pro Tip:

Open a separate bank account for your business as soon as you can. Combining personal and business finances can create an accounting headache (and trust me, you don’t want that).

5. Understand the Legal Side of Things

No one dreams of starting a business so they can spend their evenings googling tax laws or trying to decipher local regulations. But skipping this step could lead to major headaches or fines later.

Here’s what to do:

  • Choose the right legal structure (LLC, sole proprietorship, etc.) based on the level of liability protection you want.
  • Register your business with your local government.
  • Secure necessary permits or licenses depending on your industry.

If this sounds overwhelming, don’t worry; you’re not alone. Consider consulting with a small business attorney or using online platforms designed to streamline business registration. It’s a little bit of work up front, but you’ll sleep easier knowing you’re operating above board.

6. Create a Brand That Speaks Truth

Your brand is more than just a logo. It’s the promise you’re making to your customers about what they can expect from you. A great brand connects emotionally, builds trust, and invites loyalty. But it only works if it’s authentic to who you are and what your business offers.

When I was designing my own branding, I sat down and asked myself questions like:

  • What do I want people to feel when they think of my business?
  • What’s the personality behind my products or services?

That clarity saved me from creating something generic and forgettable. You don’t need a $15,000 design agency to build a brand, but you do need to invest time in what will make it yours.

Weekly Nugget: Branding isn’t about being the loudest; it’s about being the most authentic.

7. Build Your Digital Presence Before You Need It

In today’s world, your digital presence often introduces your business before you do. Social media, a decent website, and basic SEO can make or break how people find (and trust) you.

One of my first steps was creating a simple landing page with my contact info and a bit about what my business offered. Even before I officially launched, this gave people a place to find me and showed that I was serious.

Don’t underestimate the power of Instagram or Facebook for building trust early on. Share behind-the-scenes progress or your motivation for starting. Authenticity wins people over long before you “sell” them anything.

8. Talk to Potential Customers

One of the most humbling moments during my business prep came when I realized that my idea wasn’t as universally loved as I’d convinced myself it was. Talking to potential customers—not just friends who will politely agree with you—is critical.

Hold casual conversations, run mini focus groups, or reach out to online communities where your target audience hangs out. I’ll warn you, it can be a little nerve-wracking to hear criticism, but honest feedback will help you refine your offering before you go live.

Weekly Nugget: Kickstarting a business isn’t about offering what you love. It’s about offering what others need (and will pay for).

9. Plan for the Worst (and the Quiet Times)

No one starts a business expecting it to struggle, but slow periods happen to even the most successful ventures. Building a small emergency fund can make all the difference in staying afloat when things get lean.

Similarly, think about risk management. What happens if a key supplier pulls out? Or if demand shifts unexpectedly? Planning for the “what-ifs” may sound overly cautious, but it buys you freedom later.

10. Find Your Community

Entrepreneurship can feel isolating, especially in the beginning when it’s just you and your idea. That’s why connecting with other business owners (locally or online) is so important.

Joining networking groups, attending workshops, or even just finding a trusted mentor can provide unexpected insight and encouragement. I found my first group of fellow small business owners through a local Facebook group, and the ongoing support has been invaluable.

11. Start Before You Feel Completely Ready

Here’s the truth no one tells you when you're weighing over every detail of your launch plan: you’ll never feel entirely ready. But waiting for perfection often means you’ll wait forever. Taking imperfect action is what launches businesses.

Does that mean you should be reckless? Of course not. Do the work, prepare intelligently, and build a solid foundation. Then trust yourself enough to take those first, slightly nerve-wracking steps.

The Takeaway

Starting a small business isn’t easy, but it’s one of the most rewarding ventures you can take. By nailing these prelaunch steps, you’re building more than just a business. You’re creating something that’s thoughtfully planned, adaptable, and built to scale.

Take the time to prep wisely—not because every step guarantees your success, but because the effort makes the leap less daunting. And remember, you don’t have to tackle everything at once. Start with step one. The rest will follow.

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