Begin with the idea and the plan
A plan forces you to test the idea on paper before spending money.
Read the starting a business guide, then how to write a business plan and market research. A short plan with honest numbers is better than a long one with guesses.
Structure, name and registration
Choose a legal structure, check that your name is available and register with the right agencies.
See choosing a business structure, checking name availability, how to register a business and the business tax ID guide. Rules differ by state.
Licenses, banking and location
Open a business account and confirm that your location and licenses are in order.
Read how to get a business license, opening a business bank account and zoning laws. Separate accounts also make future funding applications simpler.
A rough order of steps
The order below suits many businesses, though rules vary by state and industry.
- Test the idea with real potential customers.
- Write a short plan with startup costs and a break-even estimate.
- Choose a structure, register the name and get your tax ID.
- Open a business bank account and obtain any required licenses.
- Launch small, track every dollar and learn from early sales.
Check state and local requirements with official sources or a professional.
Estimating costs and funding the start
Know your startup costs and runway before you commit.
The startup costs guide helps you total the expenses. ROI Funder works with businesses that have 6+ months in business and $20,000+ monthly revenue, so brand-new startups are not a fit yet. See startup loans for alternatives to explore.
If you reach the point where outside money makes sense, the process is short. You complete an online application in a few minutes with a soft credit pull, so applying does not affect your credit score, and you are under no obligation to accept an offer. Send three months of business bank statements and approved, complete files can be funded the same business day. Amounts run from $5,000 to $5,000,000 for businesses with 500+ FICO, 6+ months in business and $20,000+ in monthly revenue.
Guides in this collection
- 6 Types of Business Plans and How to Choose the Right One
- Business Loans for LLCs: What Lenders Need From You
- Business Startup Costs: What to Budget Before You Open
- Business Tax ID Number (EIN): What It Is and How to Get One
- Buying an Existing Franchise: What to Check and How to Fund It
- Can a new LLC get a business loan?
- Covenants in Business Loans: What You Are Agreeing To
- EIN-only business loans: what you can and cannot skip
- Facebook Ads for Small Businesses: How to Start and Not Waste Money
- Franchise Fees Explained: What You Pay Before and After You Open
- Google Ads for Small Business: How to Start Without Wasting Budget
- How to Become a Franchise Owner, Step by Step
- How to Franchise Your Business
- How to Get a Loan for Your Franchise
- How to Present a Business Plan So People Say Yes
- How to Start a Business: Steps in the Right Order
- How to Start an Email Newsletter for Your Small Business
- How to Tell the Best Franchises From the Worst Before You Buy
- How to Write Business Plan Objectives That Are Measurable
- How to Write a Business Plan That Lenders Will Actually Read
- How to Write a Business Plan That You Will Actually Use
- How to Write the Competitive Analysis Section of a Business Plan
- How to finance a franchise purchase
- How to set up an LLC for funding
- Imports and Exports for Small Business: How to Get Started
- Pros and Cons of Buying a Franchise
- ROBS Explained: Funding a Business With Your Retirement Savings
- SBA Loans for Franchises: What Franchisees Need to Know
- Small Business Email Marketing: A Plan You Can Start This Week
- Small Business Marketing for Beginners: Where to Start
Frequently asked questions
How much money do I need to start?
It depends on the business. List one-time costs and three to six months of operating expenses to find your number.
Can I get funding from ROI Funder as a new business?
Not before six months in business and $20,000 in monthly revenue. Once you reach them, apply for a no-obligation review.
Which legal structure is best?
It depends on liability, taxes and plans for partners or investors. Talk to an attorney or accountant before you file.