Starting a business can feel overwhelming. From budgeting to legalities and marketing, there’s a lot to navigate. And when you look at the statistics it’s even scarier! Around 20-23% of businesses don’t make it past their first year. And only about half of businesses survive the first five years!
By taking the time to set up your business correctly, you’re laying the foundation for long-term success. It minimizes legal risks, opens doors to opportunities, and positions you for sustainable growth.
At Dot Marketing, we’ve helped countless South Dakota businesses get off the ground, and we’re here to guide you through the process.
Here’s a roadmap to follow:
1. Crunch the Numbers
Before diving in, solidify your startup costs and ongoing operating expenses. This will help determine your financial needs.There’s no one-size-fits-all answer to ideal operating capital for every business since a service business and a manufacturing business would be very different.
A good rule of thumb for a new business is to aim for at least 3-6 months of operating capital to create a buffer during the initial, uncertain period.
2. Build Your Online Presence
- Secure a domain name for your website and email addresses.
- Obtain a business phone number and establish a business address.
3. Register Your Business
Officially register your business with the South Dakota Secretary of State: https://sdsos.gov/business-services/default.aspx
4. Secure Tax IDs
- Obtain a Federal Tax ID number from the IRS: https://www.irs.gov
- Apply for a State Tax ID number: https://dor.sd.gov
5. Open a Business Bank Account
6. Develop Your Brand Identity
- Invest in a professional logo design.
- Create essential marketing materials like business cards, name tags, website, and promotional products.
- Consider signage and banners for your business location.
7. Assemble Your Professional Team
- Partner with a qualified accountant to manage your finances.
- Secure appropriate business insurance.
- Consult a business attorney to review and draft contracts.
8. Marketing and Launch
- Implement a strategic plan to attract customers. Generally, expect to allocate anywhere from 5% to 10% of your total budget towards marketing.
- Open your doors and start building your business!
Building Your Business Network
Essential Services:
Sign company, commercial remodeling company, printer/copier company, office supplies company, janitorial service, water machine company. Business networking could be a great way to make relationships with these businesses.
