There are more than 30.2 million small businesses in the United States, which makes up over 99 percent of all businesses in the United States, according to the Small Business Administration. Considering the many reasons for starting a small business, such as having a one of a kind business idea, wanting a career with flexibility, the concept of investing in yourself, and complete financial independence, the vast number of small businesses should not be a surprise.
Although not every small business is primed for success and many of them actually fail. In fact, only two thirds of small businesses with employees last at least two years and only half of all small businesses last five years. Case in point, starting your own small business can be a serious challenge, making it a serious decision for anyone considering quitting their day job to become a small business owner.
The foundation for your small business is often times laid in the beginning of the process. A lot of preliminary and early decisions will ultimately decide the fate of your business. Therefore, ensure that you are following all the necessary steps when starting your small business to prime yourself for success.
The sunny state of Arizona is rated in the top five states with the best economic growth prospects. In addition, Arizona is sixth in entrepreneurship and twelfth in access to funding. These facts are the reason why the state of Arizona is an ideal place for entrepreneurs. Here a few steps to get you started and teach you almost everything you need to know about successfully opening a business in Arizona.
Choosing A Small Business Idea
The first step in opening a business in Arizona is deciding what kind of small business to start. It is recommended to start by considering ideas that align with your natural skills or abilities and your personal interests or goals. This will help keep you driven and inspired throughout the process and especially when you face hardship and adversity.
If you are in need of some small business ideas or inspiration before opening a business in Arizona, some of the most popular ideas among visitors to Arizona in 2017 include:
- Jewelry store
- Pool installation service
- Asphalt paving services
- A billboard advertising company
- Debt collection agency
- Employment agency
- Costume rental service
- A taxi service for kids
If you need additional assistance, there are many business idea generators online that help match your interests and lifestyle with a great business idea. Regardless, you might find that you’ll need to hire one of these above businesses to get started, like asphalt paving services. Whether you are interested in fashion, food, or mechanics, there is a great business idea out there for you that will sustain your interest and keep you motivated. Choosing a small business idea that suits you well will significantly improve your odds of success when opening a business in Arizona.
Coming Up With A Business Plan
Successfully opening a business in Arizona requires careful planning. First and foremost, it is important to evaluate your idea in great detail and come up with a comprehensive business plan before putting a great deal of money and other resources into your small business. You can begin by considering the following.
A Name For Your Business
Often the first step in the process, thinking of a name for your small business is one of the most important and sometimes challenging steps in starting your business. You will want to pick a name for your business that is available in the state of Arizona and as a URL, complies with Arizona business law, and can be easily recognized by customers. When formulating a business plan, you should consider these factors as well:
Sales and Marketing – Before considering your marketing plan, consider your marketing budget. After that, you can begin considering factors such as your target market or potential customers, how you will reach them through advertising, and eventually turn them into regular customers. Think about the specific demographics of your customers such as age, gender, occupation, location, and income. Decide what social media platforms you will be utilizing, if any. This is a strategy that is bound to evolve over time, but it is important to lay out an initial plan.
Product/Service Development – Think about what product or service your business will provide and how you plan to set yourself apart from your competitors. Think about what problem your product or service solves and how you will solve it better than your competitors. If you have a product you want to sell, figure out how you will produce more, if you may need help with production, and whether or not it may be possible to sell in a store, a booth, or online. If you have a service in mind, look into what you’ll need to perform said service well and if you can do it alone or need help. You may also want to check out cheaper alternatives to getting the service you want to provide done so you can offer yours for less.
Employees and Partnerships – Consider what roles in your small business will need to be filled and what professional relationships you will need to form in order to be successful. For instance, you may want to partner with local grocedry stores to sell your line of jams. Or you may need to look into what business aspects you lack, such as an exoertise in web design or bookkeeping accounting. You should aklso consider whether you may need to work other store or shops that perform similar or sell similar products or services.
Financial Planning – Start to think about how many sales you need to make and how many clients you will need to maintain to make a profit, or to break even. Consider how much money this will require and from where you will secure the funding. If you’re particularly challenged in math there are many bookkeeping and accounting for small business owners book you can look to for more information.
A USP and mini pitch – USP stands for unique selling proposition, which is slightly different than a mini pitch. The purpose of both of these are to sum up your business’s mission in a clear and catchy way. Your unique selling proposition should be a short phrase while a mini pitch is generally one to two short sentences long.
Business Milestones – Plan ahead and set goals pertaining to what you wish to achieve in the next few months, half a year, year, or two years. You may not meet every major milestone you plan but setting them is a common business that will help keep you motivated and on course.
This is a heavily abbreviated explanation of a business plan. If you need additional assistance with formulating a plan for your business, there are a few business planning guides online with free planning tools as well as business planning software available to help you evaluate your business idea and come up with a business plan.
Registering Your Business
The next major step in opening a business in Arizona is registering your business with the state. Before you can take this step, you have to decide what kind of business structure you want your company to be. While the most popular option is an LLC, there are other options such as an S Corp, C Corp, or Sole Proprietorship. Rules are even more different if you’re becoming the owner of a building that’s a part of a franchise. In this case, you’ll want to contact a franchise litigation attorney for further information. Here is some quick information to help you decide what type of business structure you want to form.
LLC – A limited liability company is the most commonly formed business structure since it provides small business owners with flexibility regarding tax law while still enjoying the same personal protection of a corporation. Many states, including the state of Arizona, allow for single member LLCs, which means you can enjoy the many benefits of an LLC business structure even if you are the only member of your company. If you plan on hiring more employees, you can consider contacting reputable workers compensations lawyers.
S Corp – A Subchapter S corporation is sometimes referred to as a Small Business Corporation. This business structure is a much more formal structure than an LLC, since it includes a board of directors, up to one hundred shareholders, and corporate officers. Under this business structure, all company profit is claimed on the shareholders’ personal tax returns.
C Corp – A Subchapter C corporation sets not limits on the number of shareholders, and is the only business structure that is taxed twice. Under this business structure, the business itself and its shareholders are both responsible for paying taxes on their profits.
Sole Proprietorship – A sole proprietorship is commonly considered the least formal business structure in existence. It does not require an article of organization or incorporation to be filed, However it is recommended to file a DBA, which stands for Doing Business As. Sometimes referred to as a trade name, the purpose of a DBA is to be able to legally operate a business under a different name. A sole proprietorship is also commonly considered the highest risk business structure since there is nothing to protect you from business liability.
Choosing the right business structure is an extremely important step in opening a business in Arizona. Do not just choose a certain structure by default. Carefully consider each structure’s benefits and drawbacks before making a decision.
Obtaining A Business License
Once you have decided on a business structure and have successfully formed your company, you are another step closer to opening a business in Arizona. The next step is ensuring your business is completely compliant with all Arizona state law and regulations. Unlike many other states, Arizona state law does not require proprietors to have a general business license. However, depending on your type of business, you may have to obtain several permits. You also need to consider what your tax obligations are going to be. You might have to pay special taxes on the local, state, and federal level. It is always better to put the effort in now and sort this out beforehand to avoid having to pay a hefty fine later on down the road.
Tax and licensing law can be incredibly complicated, so here are some of the best resources available to sort out your tax and licensing obligations on the local, state, and federal level.
Local – Since tax law and regulations are known to vary by city and by county, your local Chamber of Commerce is your best resource for information regarding what local requirements your business needs to meet. Here, you can also find some general tips to help small business owners along the way, such as how to prevent human error in workplace.
State – The Department of Revenue provides plenty of information that thoroughly outlines Arizona’s business tax law. Here, you can also find plenty of information regarding state licensing requirements. This department will also direct you to any governmental entities you need to get in touch with.
Federal – The Small Business Association provides small business owners with a plethora of information regarding federal permits and licenses, including what federal departments you may need to contact, such as the Department of Agriculture or the Alcohol and Tobacco Tax and Trade Bureau if your company handles highly regulated goods or services, for example. The Small Business Association provides information on small business tax law as well, although your best resource for information about federal tax law and requirements is the Internal Revenue Service.
Since the state of Arizona does not require proprietors to obtain a general business license when opening a business in Arizona, chances are you may not have to obtain any licenses or permits at all. However, you still want to do your due diligence and research what requirements your business needs to meet at every level of government.
Finding A Property
After your company is compliant with all laws and regulations, there are still many more steps that need to be taken before opening a business in Arizona, such as separating your personal and business assets, funding your business, and building and marketing your business’s brand. However, one of the most important steps to take next is finding a property.
The first step in purchasing a property for your small business is to find a commercial realtor that you can trust. A knowledgeable commercial realtor can help you decide what type of property and location is right for your small business. They will deal with land surveying and any zoning law disputes that need to be settled. They will also be able to list and explain in depth all the fees and costs related to the purchase of commercial real estate or commercial construction. For any other questions you may have throughout the process of starting a small business, it is highly recommended to consult with an attorney or an accountant.
Do not forget to schedule an inspection of the property before purchasing. This way, you can request that the seller fix any issues with the property, such as electrical or plumbing, before your purchase. There will be plenty of expenses later on, such as a trucking company for moving in, so it is wise to try to save money on the commercial building renovations. This includes the money spent on remodeling, equipment upgrades, and ADA upgrades. This will allow you to save a ton of money in the future.
Opening a business in Arizona can be a serious challenge, which is why many of them result in failure. You’ll have to invest a lot of capital to get your building off the ground. Commercial roofing services, realtors, and legal matters are just the first steps on your journey. Luckily, if you follow these steps, such as coming up with a business plan, following all Arizona state law and regulations, and finding the right property, your small business will be primed for success.
When learning how to set up a small company, the emphasis is usually on finding funding, office space and even employees. When looking for advice on how do you set up a small business, the feedback is usually about getting to day 1. But what do you do when you’ve hung up your shingle and you are ready to work? How do you find customers? Basically, do you know how to set up a small company to succeed?
The key to finding customers is marketing, that has always been true. Now the marketing exists online. Local business search engine optimization can help your business be found by potential customers. Creating the best SEO for local business can help level the playing field with your competitors and help local residents find your service.
There is no one guide to local SEO. There are many different tricks of the trade. If you speak to five different digital marketing agencies you will probably get five different answers to what is Google local SEO. The key to local business search engine optimization is to make sure your location is mentioned in the copy on your site repeatedly. Every visitor should be able to immediately tell where your business is based.andnbsp;
What are some other tricks that you would add to your guide to local SEO? Leave your thoughts in the comments.
Related Topics: 3rd party dmv queen creek az, 602abcwater out of business, ador az, arizona business commission, arizona business filings, arizona business license application form, arizona business records, arizona contractor lookup, arizona ein number lookup, arizona employer state id number, arizona id number.
Related Keywords: ador az, arizona business commission, arizona business database, arizona business filings, arizona contractor lookup, arizona ein number lookup, arizona new business registration, arizona pest control license search, arizona sales tax permit, arizona sole proprietorship registration, arizona state employer tax id number, best small business in arizona, business income search, business licence number, business revenue database, do i need a business license in arizona, ein search arizona, federal government business registration, file az llc online, getting an llc in az, google arizona llc.