8 Steps To Creating Your Small Business

 

Starting a small business can be challenging, especially in today’s global economy. Nearly 20% of businesses fail within their first year, and only half make it to five years. With adequate research and a willingness to understand the nuances of running a business, there is room for success in your business idea.

In this guide, you will learn 8 simple steps to get your business started. With the right steps in place, you can grow your business idea and find success.

 

1. Conduct Market Research

Conducting market research helps you understand the competitive landscape you are entering into. Whether you have a physical location or are strictly an eCommerce store, there are always competitors who are similar to your business idea.

Learn what those competitors are doing to understand the industry you are entering into better. What companies inspire you? What would you do differently than other stores? Keep an accurate record of your findings and write a summary of your research. If you ever feel stuck in honing in ideas, your market research can help you make a plan moving forward.

 

2. Write a Comprehensive Business Plan

A comprehensive business plan can take a lot of time and careful consideration. A business plan summarizes everything about your business and what it needs financially to operate at its best.

Aspects to include in a business plan include,

  • Executive summary
  • Mission statement
  • Environment considerations
  • Market analysis
  • Competitive analysis
  • Management plan
  • Financial plan
  • Product lists
  • Potential investors

By knowing exactly what your business needs in your plan, you can keep on track for a successful start to your small business.

 

3. Consider Accounting Options

The type of business you start can affect how you pay taxes, raise money, and the personal liability involved. Many small business owners talk with an accountant or attorney first to understand better how opening a small business affects their finances.

 

Types of Businesses

Sole Proprietorship: A sole proprietorship gives you complete control of your business. This type is not considered to be a separate business entity, which means your business assets and liabilities are connected to your personal assets and liabilities.

Partnership: A partnership involves two or more people who own a business together. This can be a limited partnership (LP) or a limited liability partnership (LLP). An LLP helps protect a partner from potential debt that the other partner may accrue.

Limited Liability Company (LLC): An LLC combines the aspects of corporation and partnership structures. This type protects personal assets such as vehicles, houses, and savings accounts. Keep in mind LLC is still considered to be self-employment, which means you have to pay self-employment tax.

C Corp: C corp means a corporation and is a legal entity that is entirely it’s own. Corporations are able to make a profit, pay taxes, and can be held legally liable. It is the strongest type to protect personal assets, but also requires more acute reporting.

S Corp: S corp is a subchapter corporation that is created to avoid taxation complexities. S corps are allowed to gain profits, experience some loss, and be passed to a business owner’s personal income.

 

4. Register Your Business

After deciding what type of business works best for you, then it is time to register your business. Registering your business creates a tax ID number, otherwise known as an employer identification number (EIN). This helps track your business for tax reasons, but keep in mind that if you are not a corporation or partnership, you will not have to register for an EIN.

Make sure to register your business in the state you are in, as income and employment taxes differ per state. Talk with your attorney or accountant to further understand what is required to fully register your business.

 

5. Consider Payment Options

Setting up payment options for future customers can seem like a daunting task, but it can be made very simple with a POS system, merchant account, or payment gateway account. More customers are utilizing debit or credit cards, which makes it a key aspect that is needed when starting a small business.

Choose a credit card machine or point of sale (POS) system that works best for your business model. More advanced POS systems like Modisoft are able to offer inventory management, as well as manage schedules and regular reports, which can help you increase profits. There is also the option to set up a merchant account or create a payment gateway account. In the US, eCommerce represents 10% of retail sales, which means online sales are becoming even more crucial for businesses to adapt to. With a payment gateway, there is the ability to encrypt data and ensure that the information is secure for customer payments.

However you choose to collect payments, make sure to check for any hidden fees or transaction minimums before signing up for a service.

 

6. Apply for Licenses or Permits

There are regional, state, and federal licenses and permits to consider before you can open your business. Depending on the type of business you plan to open, the type of permit will differ. If you are opening a restaurant, you will have to consider a food handler’s permit, as well as a liquor license. For retail, the licenses may differ depending on what state your business is located in.

 

7. Define Your Business Concept

Define your business concept down to every detail before you consider opening the doors to your business. Consult your original business plan and make sure you are on track with your financial plan, product line, or menu items that should be considered beforehand.

The more you can define your business, the more customers will be able to identify with your brand. In turn, you can create a loyal base of customers who believe in your business and continually want to purchase more from you.

 

8. Open The Doors

Once you have everything in place, you can open the doors. Ask for customer feedback and consider an online system that creates more opportunities for customer outreach and sales. Keep a close eye on competitors to stay ahead of the game and make sure to utilize technology to its fullest to ensure your business has longevity.

 

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FAQ

Rest assured that our exceptional customer support is at your service round the clock, 24 hours a day, 7 days a week. We take great pride in providing you with unwavering assistance, ensuring that any issues or concerns you may encounter are swiftly and effectively addressed. Feel free to reach out to our dedicated support team whenever the need arises, as we are always here to provide you with prompt and reliable solutions.

Modisoft takes pride in providing a comprehensive suite of tools designed to facilitate seamless operations for your restaurant. With our powerful software, you can take advantage of a range of features tailored to enhance your efficiency and customer experience.

One of the standout features of Modisoft is the ability to view live sales data. This real-time visibility empowers you to monitor sales performance as it happens, allowing you to make informed decisions and swiftly address any issues that may arise.

Moreover, our software enables you to create customizable menus for ordering. You have the flexibility to design menus that align with your restaurant’s unique offerings, making it easier for customers to browse and select their desired items. This customization feature ensures a user-friendly ordering experience that caters to your specific requirements.

Additionally, Modisoft supports digital menu boards for pricing. By leveraging this functionality, you can easily update and display pricing information on digital screens within your restaurant. This dynamic approach eliminates the need for manual price changes and enhances the overall aesthetics of your establishment.

We’re pleased to announce that the cost to run the POS system aligns with the subscription for your back-office software. This streamlined approach simplifies your financial management, allowing you to enjoy a unified pricing structure that covers both the hardware and software components.

Maximize the potential of Cartzie Campaigns, our exceptional tool, by harnessing its features to create customer loyalty and drive repeat visits to your store. With Cartzie Campaigns, you can implement robust loyalty programs that incentivize customers to return, fostering a strong and lasting relationship with your brand.

Furthermore, take advantage of the automated customer outreach capabilities of Cartzie Campaigns through text messaging. This powerful feature allows you to engage with your customer base proactively, sending personalized messages, promotions, and updates directly to their mobile devices. By automating this process, you save time and effort while maintaining consistent and effective communication with your valued customers.

Additionally, our software empowers you to offer online ordering, opening up new avenues for sales and customer convenience.

By leveraging Cartzie Campaigns’ loyalty programs, automated customer outreach via text messaging, and online ordering capabilities, you can enhance customer engagement, increase sales, and deliver exceptional customer experiences. Embrace the full potential of these tools to grow your business and establish a strong presence in the digital realm.

About Altria

Altria Group, Inc. is one of the world’s largest producers and marketers of tobacco and related products. They have been the undisputed market leaders in the U.S. tobacco industry for decades.

Altria Group is known for owning the most enduring names in American business including but not limited to Philip Morris USA, John Middleton, and U.S. Smokeless Tobacco Company.

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Benefits

  • Monitor and track all promotional efforts by directly integrating deals into insights
  • Receive Altria rebates smoothly by sharing scan data reports
  • Generate Altria scan data report program at a click

Pricing

Included in Advanced Plan

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About Cartzie

Cartzie is a loyalty application designed by Modisoft, with you in mind. It is a one-stop loyalty and online ordering solution that is fully equipped with all the tools needed to make your business grow.

With Cartzie, you can do curbside pickups, delivery, and drive-thru ordering. Cartzie has revolutionized the way businesses interact with customers.

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Benefits

  • Add delivery options for your customers
  • Boost your marketing efforts through targeted campaigns
  • Take your business online in a few clicks
  • Receive payments online for your orders

Pricing

+$59 per month with Retail Plans

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About Comdata

COMDATA has been serving businesses for over 45 years and is recognized as a leading provider of commercial payment solutions. They specialize in serving the trucking industry and are known as an issuer of fleet fuel cards, trucking permits, corporate spend cards, and paperless payroll cards.

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Benefits

  • Automatically transfer sales data from the Comdata POS into Modisoft back-office software
  • Get an all-in-one solution to monitor and track your sales separately
  • Easy accessibility to manage all your fuel sales

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Included in Advanced Plan

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About DoorDash

DoorDash, Inc. is a food ordering and delivery platform based in San Francisco. It is the largest food delivery company in the United States with more than 50% of the market share in the convenience delivery category. It provides an on-demand food delivery service to restaurants and stores. Their services help businesses innovate, grow, and reach more customers.

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Benefits

  • Receive order directly into your POS System
  • Manage your online DoorDash menu
  • Enable DoorDash orders for your customers

Pricing

+$69 per month for Third-Party Order Management

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About Fintech

Fintech has been dedicated to serving the beverage alcohol industry for the last 30+ years. Established in 1991, Fintech operates from its headquarters based in Tampa, Florida. Supported by TA Associates and General Atlantic, Fintech automates alcohol invoice payment, streamlines payment collections, and facilitates comprehensive data capture for 1 million B2B business relationships.

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Benefits

  • Import vendor invoices directly into your back office
  • Optimize purchase order management
  • Improve your alcohol vendor management

Pricing

+$5 per month

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About Gilbarco Veeder-Root

Gilbarco Inc. is a supplier of fueling equipment including fuel dispensers, payment systems, point-of-sales systems, and support services. The company operates from Greensboro, North Carolina.

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Benefits

  • Effortlessly connect your POS data from the Gilbarco system to Modisoft Insights

Pricing

Included in Advanced Plan

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About Instacart

Instacart is a delivery company that operates a grocery delivery and pick-up service in Canada, and the United States. It is one of the largest grocery marketplaces in North America. Instacart makes the delivery process easy for store owners.

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Benefits

  • Monitor and manage your Instacart inventory levels from Modisoft Insights
  • Updated Instacart inventory levels in real-time
  • Avoid stockouts by ensuring accurate inventory levels

Pricing

+$15 per month

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About Retalix

Retalix Ltd was established in 1982 and is now owned by NCR Corporations. It develops licensed and supported software applications for retailers, wholesalers, and distributors of fast-moving consumer goods.

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Benefits

  • Easily Import sales data for reports and analytics from the Retalix POS system
  • Monitor sales in real-time

Pricing

Included in Advanced Plan

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About Paycue

Paycue is Modisoft’s preferred payment processing provider. It helps businesses to streamline their setup process to be faster and more efficient. Paycue assists businesses with faster payments and smoother customer interaction.

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Benefits

  • Enjoy minimal fees on transactions
  • Seamless integration
  • Speedy transactions
  • Secure payments

Pricing

No monthly fee. Only pay when you sell.

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About Plaid

Plaid Inc. is a financial service company that builds a data transfer network that powers digital finance and fintech products. Plaid assists businesses in connecting their financial accounts to fintech services. The company's product enables applications to seamlessly connect with the user's bank account.

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Benefits

  • Build a quick and secure connection to your bank account
  • Easily manage your bank reconciliation to match your book records
  • Experience an easier way to connect with your bank account

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About RJ Reynolds

R.J. Reynolds is a leading tobacco manufacturing company in the United States. Founded by R.J. Reynolds in 1875, the company is a subsidiary of Reynolds American. RJR holds the largest brand portfolio including but not limited to Kent, Pall Mall, Camel, and Newport. The company is based in Winston-Salem, North Carolina.

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Benefits

  • Offer tobacco loyalty from the industry's leading brands
  • Monitor all promotional efforts in just a few clicks
  • Get your rebates easily

Pricing

Included in Advanced Plan

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