Want to start a business in Whatcom County? Local expert says start with these 5 tasks
Are you looking to start your own business but you don’t know where to start? From state requirements, licensing, taxes and payrolls, thinking of creating your own business can be daunting.
The Bellingham Herald reached out to some local experts to help provide a guide for you to start your own business right here in Whatcom County.
Here are the five things to do first when thinking of starting a business, according to Eric Grimstead, a senior certified business advisor at Western Washington University’s Small Business Development Center:
1. Answer These Questions: Why You? Why this business? Why now?
“Personal goals should drive your business decisions,” Grimstead said. “Before staring a new business you should be ready, willing and able to execute your plan. Some simply are not prepared for self-employment through small business ownership.”
“If you feel less than prepared there are plenty of training opportunities to learn business fundamentals before launching your business,” such as online events and seminars Grimstead recommends through the Washington State Small Business Development Center.
2. Develop your business plan and do some market research
“This does not have to be an exhaustive 30-40 page business school-type plan but you should be able to summarize in 5-10 pages your vision for success, how you plan to market to attract customers, how you will run business operations etc.,” Grimstead said.
Market research includes understanding your ideal customer, identifying the size of your potential market, the demand for your product or service and the competitive landscape, according to Grimstead.
3. Choose a business structure or entity types
There are many kinds of businesses, such as sole proprietorships, limited liability companies, corporations, partnerships and others. Choosing which type of business entity can be confusing. Grimstead recommends doing your research on the various business structures and seeking advice from your tax advisor or legal counsel to make the decision.
Washington state’s website also offers detailed guidance and explanations of each business structure.
4. Handle funding and financial planning
“You need to develop a financial plan that includes your base budget of costs that will be incurred prior to opening your business. Think of these as your sunk start-up costs,” Grimstead said.
After this, Grimstead advises to developed financial projections based on your known or estimated operating expenses.
After assessing your expenses, Grimstead says to assess whether you can self-fund your business endeavor or if you will need to find other financing from investors or banks.
5. Get your business license
The type of business license you need depends on the business structure you chose in step 3, according to Grimstead.
If you decide to form a limited liability company or corporation, Grimstead provided two steps to follow:
▪ Step 1: Go to the Secretary of State’s office website to create your business entity and get a certificate with your own Unified Business Identifier number. Once your new business entity is formed and you receive the certificate from the State with your UBI number, proceed to step 2 to apply for the State and City Business Licenses.
▪ Step 2: Get your entity licensed to do business by filing a Master Business License application through Washington State’s Department of Revenue website. The Department of Revenue’s website will allow you to file both the State and most city’s licensing at the same time, according to Grimstead.
If you decide to form a sole proprietor or partnership, you can simply start with the Master Business License application through the Department of Revenue website in step 2, according to Grimstead.
Have more questions on how to start your own business? Here are a few more resources:
▪ Doing Business Guide from Whatcom County.
▪ Going Into Business Checklist from the Washington State’s Small Business Development Center.
▪ The Small Business Guide from business.wa.gov.
▪ National Resource Guide for Small Business from the U.S. Small Business Administration.
