Small businesses make up 97.9%, with 46.2% of Ohio’s workforce. The future is bright for entrepreneurs and small businesses in Ohio thanks to venture capital. Ohio has the best chance for entrepreneurs to start a small business. Get started today by following our easy step-by-step process. You’ll be on your way to financial independence and personal freedom in no time.
1. Requirements For Starting A Small Business
Maybe you have been considering starting your own business for some time. It’s clear what you want to do, and you are ready to get started. But you don’t know what steps to take. Follow these seven steps to open a business in Ohio.
Name your business
It is a good place to begin. It is important to choose a name that draws attention, communicates your business’s purpose and is easy to remember for customers. To ensure that your business name has not been used by anyone else in your industry, you should consult the United States Patent and Trademark Office. You should also search for your business name on the Ohio Secretary Of State’s Business search page.
Decide the structure of your business
Once you have a name, it is important to determine the type of company structure your small-business will be established under: Sole Proprietorship (or Partnership), Limited Liability Company (LLC), Corporation, Non-profit, or Cooperative.
Register your company with the state
After you have identified your company name and the type of organization that you want to open, you can register your Ohio business with the Ohio Secretary Of State. Your registration can be filed online or by mail.
Make a business plan
A strong business plan, even though it is not required by any government agency, is essential for any business’s success. The plan will help you to clearly define your company’s goals, financial projections, and ultimately, how you intend to succeed.
Apply for a Federal EIN.
For tax administration purposes, any new entity must apply for an federal Employer Identification Number (EIN). This is similar to obtaining a social security number for your company. You will need this unique number on all tax forms.
It’s easy and quick to apply online for an EIN.
Open a bank or credit account
After you have obtained a federal EIN number, you can open business accounts. Separate business accounts are better for tracking your tax expenses. Usually, you will need a separate account.
Get the appropriate permits and licenses for your business
Finally, depending on the trade you are involved in, different permits or licenses may be required to operate your business legally. To simplify the process, Ohio offers a comprehensive checklist and links to forms for each trade.
2. Startup Tips And Mistakes
Here are the important startup tips that will help you make your startup a success.
- Begin small before taking on large-scale ventures. Entrepreneurs are often seen as risk-takers. Most successful entrepreneurs aren’t comfortable walking around with one eye on the other. They take calculated risks.
- Do not dwell on your mistakes and let them get you down. What makes successful people different from everyone else? They learn from their mistakes and move forward.
- Learn from other people. Learning from others who have been there will save you a lot of time and effort.
The U.S. Bureau of Labor Statistics reports that 20% of new businesses fail within the first two years of their operation and that roughly half of all businesses fail after the fifth year. How do you launch and manage your startup successfully?
Do not be afraid to fail
Fear of failure is the biggest mistake you can make. Your success is dependent on your failure, so it is important to embrace your fears and be open to learning from them.
Create a business plan
“Too many businesses begin without a basic plan. If you don’t plan, you are planning to fail.”
Get organized
Being organized is essential. Being a small business owner is like being a circus ringmaster. It is normal to have many things going at once. I keep a daily task-list of things I need to complete each day. They are ranked according to their importance.
Spend your money wisely
Startups with limited capital have to be careful with how they handle money. You need to save up as many resources as possible for a better growth of your business.
3. Reducing Small Business Startup Costs
Your operating costs should be lower to stay ahead of your competitors. Owners of small businesses should be constantly looking for ways to lower their operating costs.
- It is common to have a tight budget when starting a business. This is why it is crucial to compare your utility providers e.g. Columbia Gas providers and make smart financial decisions to find the best rate.
- Being aware of the average cost of AEP Ohio and natural gas can serve as a great benchmark for creating a budget and finding ways to lower your bills.
Learn and pivot your business model as needed. Test new ideas and acquire feedback so you can tweak your business to better meet customers’ needs.