10 Essential Steps to Kickstart Your Small Business in Texas

Do you want to start a small business? Texas could be the perfect spot!

The cost of living and operating costs tend to be lower compared to other major cities. That means your start-up money can stretch way further from the very beginning.

But here’s the real kicker – the start-up communities and support networks across Texas are booming! You’ll find a lot of other entrepreneurs, investors, advisors, and resources to help give your small business a solid jumpstart. From funding to mentorship, the connections are endless.

Start Your Business In Texas

Here are some tips to help you start your business:

Research the Market

When starting any small business, you have to do your homework first! I’m talking about good old-fashioned market research. Really analyze if there’s local demand for what you will offer.

Scope out the competition, too. Who else is already selling something similar in the area? Study their strengths and weaknesses. Figure out how you can set yourself apart and fill any gaps they’re missing.

Don’t just go in blind or make assumptions, either. Talk to potential customers, send surveys, and join online communities where they hang out.

Create a Business Plan

Alright, you’ve done your market research homework, and you’re feeling confident about moving forward with this small business idea. Now, it’s time to get an official game plan in place!

This all-important document outlines your big goals, the services or products you’ll provide, plus your go-to-market strategies for attracting customers and making sales.

Don’t just jot down a few notes either – really get detailed and specific. Clearly define your offerings and unique selling points. Map out creative marketing tactics to get in front of your target audience.

Get Financing

Funding your new small business can be tricky if you don’t have a lot of personal savings.

There are specialized small business loans in Texas with bad credit that can help. Direct lenders are way more flexible than banks. They’ll consider your entire situation and business plan, not just your credit history.

As long as you can demonstrate a solid vision, realistic projections, and a path to revenue, poor credit won’t necessarily be a total deal-breaker. You may qualify for fair terms to get that crucial startup cash you need.

The key is finding a trustworthy bad credit lender that specializes in small business loans for Texas residents. With some diligence, you can locate funding solutions despite imperfect credit.

Register Your Business Name

One of the first official steps when starting a small business? Registering that name!

Head on over to the Texas Secretary of State website to do a business name search. Scope out if your top choices have already been taken or not. Once you lock one in that’s available and feels right, throw down the small fee to claim and register it.

This makes your professional business name a matter of public record. It also gives you legal rights over using that name within the state of Texas. No shady competitors can try to swoop in and cause brand confusion!

Get Necessary Permits and Licenses

Don’t get too ahead of yourself after registering that fresh business name! Some other mandatory licenses and permits are still to be crossed off the checklist.

In Texas, you’ll likely need a sales tax permit if selling products, plus any professional or occupational license.

For example, opening a restaurant? You need food service and health permits. Running a contracting business? You need to secure those contractor licenses first.

It’s a pain, but getting legit with all the necessary permits and licenses avoids any legal headaches down the road. In addition, it shows clients and customers you’re operating a credible, by-the-books business from day one.

Open a Business Bank Account

Once you’ve officially registered that business name and secured all the necessary permits, it’s time to get your finances in order! This means opening up a dedicated bank account for your new small business endeavor.

Don’t even think about mixing personal and professional income/expenses into the same account. That’s a major no-no that’ll create a huge headache. You need a completely separate account strictly for business transactions.

Shop around at different banks and credit unions to find an account with low fees and good digital banking tools.

Funding For Cash Reserves

Even after you’ve lined up initial funding to cover start-up costs, it’s wise to have extra cash reserves squirrelled away, too.

Those first few months (or years!) can be lean while you’re building a customer base. Having a little financial cushion prevents cash flow strains if things unexpectedly go south. It buys you breathing room, to be correct.

If you need to get a loan today then there are many direct lenders that give you funds within 24 hours!  Be smart about only borrowing what you truly need at reasonable rates, which you can realistically repay once revenue kicks in.

Set Up Accounting Systems

Don’t let accounting fall by the wayside once your small business takes off! Having organized financial systems and processes in place early is also important.

Develop strict habits for logging every transaction, too. Knowing your cash flow situation at all times prevents nasty money surprises.

Plan ahead for taxes! Whether sales tax, income tax, or payroll withholdings, don’t let that tax burden creep up. Set aside funds diligently to avoid penalties.

Hire Your First Employees

Get those job postings up on all the major online boards. Pay close attention to crafting clear, enticing descriptions that’ll reel in top local talent, and don’t undersell the role or company mission!

Once those resumes start rolling in, get ready to conduct a well-organized interview process.

Come armed with a list of insightful questions to really gauge skills. As you’re hiring employees in Texas, be sure to get acquainted with all the state’s relevant employment laws too.

Launch Marketing Efforts

The first priority is establishing an online presence with a professional website and active social media profiles. In this digital age, that’s pretty much the modern-day storefront. Keep things clean, on-brand, and updated with your latest offerings.

Since you’re a local small business, though, don’t neglect tried-and-true grassroots marketing. Explore neighborhood advertising through things like direct mailers, church bulletins, community websites, and events.

Conclusion

Texas just has this amazing pro-business, entrepreneurial spirit going on. There are not a lot of heavy regulations or taxes to weigh you down, either. You can truly focus on turning your big idea into a successful reality. Plus, you’ll have access to a huge pool of skilled, talented people whenever you need to start hiring staff. The workforce in Texas cities like Austin, Dallas, Houston, and more is top-notch.