Small business owners.

Tips For Starting A Business In 2020

Victoria Araj4-minute read
November 02, 2020

Starting a small business can bring many positive changes to your life. Whether you want to build a side hustle to propel you toward financial goals such as buying a house, or build a full-time business to replace your 9-to-5, becoming a successful business owner can bring you options.  

If your 2020 resolution is to build a successful business, then keep reading. We will dive into the details of building your small business this year.

How Can I Start A Successful Business?

If you want to start your own business, it can be easy to get overwhelmed by the big picture. After all, you likely have big goals. However, it is important to start with the basics of building your business. Once you have a handle on the basic functions, it will be easier to scale over time. 

Anyone can build a successful business with hard work, determination and a good idea. Start with your good idea. Tease out exactly what you want to accomplish with this business and begin thinking of ways to make it happen.

As you start your small business, work through these steps to prepare for a successful future. 

Solve A Problem

If you aren’t solving a problem for your customers, then it can be difficult to generate sales. With that, it’s important to conduct market research in the beginning stages of your business. Research the market you intend to enter to ensure that you can turn your idea into a successful business. Find out more about the target customers in your market. You can use this information to adapt your business to suit the customer’s needs. 

Create A Plan

A business plan can be the basis of your successful business. Although you can expect your business plan to adapt and change over time, start with the information that you currently have available. As you continue to build your business, you can consult your plan to make sure that you’re on the right track. 

Location, Location, Location

For some businesses, a perfect location is absolutely critical to success. For other businesses, you can work from anywhere in the world without any repercussions. Decide which category your business falls into. 

If you need a perfect location, then take the time to find the right fit. Make sure to take any legal consequences of your location into account. 

Decide On Your Brand

In order to start building your business, you’ll need a brand name for your products. Take your time when making this decision. The brand should reflect your values and explain to the customer what you are. Don’t rush through this part of the process!

Make It Legal

Once you have the business plan and are ready to take action, it’s time to make your business legal. You’ll need to research the specific laws in your area to make sure that you comply with all of these rules. 

Research which business structure will work best for your situation. The structure you choose can have a big impact on your tax liabilities. For example, choosing between a sole proprietorship and an LLC is a big decision. If you run into any complications or questions, then consult with a professional to ensure that your business is up to every legal standard. 

Separate The Finances

It can be easy to accidentally mix your personal and business finances when you’re getting started. However, it’s important to separate these finances as soon as possible. Open a bank account for your business. Allow the revenue and expenses to flow out of that account without any confusion in your personal finances. You’ll need all of your legal documents to set up your business bank account, so make sure to bring them to the bank. 

Stay The Course

Building a business is extremely hard work. You should expect late nights, early mornings, and difficult days. However, the rewards can be amazing if you love the business you’re creating. Don’t let one bad day stop you from pursuing your dream. Instead, power through the problems and build a business you love.

How Can I Start My Own Business With No Money?

As you start your small business, it can be daunting to find the appropriate funding. 

In some cases, you might not need any significant amount to get started. For example, building an online business can be accomplished with the laptop that you already own. With that, you’ll be able to get started without any money. 

However, other businesses need a lot of cash to get started. You have a few options to find the funds you need:            

  • Self-Funding. Although you may not have any extra money lying around, you do have your skills and your time. You could start earning extra money through a side hustle to fund your small-business venture. 
  • Investors. If you know how much money you’ll need, you can approach investors with your small-business idea. It could be a good option if you’re OK with letting go of some of the profits down the line. 
  • Loans. There are a multitude of loans available for anyone looking to start a small business. You could pursue a personal loan, a business loan, or several other types of loans to secure the funds you need. 
  • Grants. Small-business grants are available in some areas to help you get your business started. Talk to your local Chamber of Commerce to find out more about these opportunities in your area. 

Take the time to decide which funding option is best for your situation. Don’t let the lack of funds prevent you from building your dream business. 

What Side Business Can I Start?

There is no limit to the number of side businesses that you can start. Find something that excites you and allows you to meet your financial goals. Here are a few ideas to help start your search for the perfect side hustle:

  • Flip items on eBay.
  • Drive for Uber.
  • Become a virtual assistant. 
  • Start your rental empire with a spare room on Airbnb. 
  • Manage social media accounts for local businesses. 
  • Become a freelance writer. 
  • Start a blog. 
  • Walk dogs. 
  • Become a personal organizer. 
  • Become a local tour guide. 

Seek out the unique business opportunity that gets you excited!

The Bottom Line

Building a business will come with its ups and downs. However, it can be a rewarding experience for both your personal growth and your personal finances.

If you want to build a business to improve your personal finances, that’s a great move! If you want to learn more about improving your personal finances, then check out RocketHQSM.

Victoria Araj

Victoria Araj is a Section Editor for Rocket Mortgage and held roles in mortgage banking, public relations and more in her 15+ years with the company. She holds a bachelor’s degree in journalism with an emphasis in political science from Michigan State University, and a master’s degree in public administration from the University of Michigan.