After determining that you want to start a small business, creating a business plan, arranging financing, and setting up your website, it's time for you to open a physical store. Although planning a business is challenging, the act of opening up and realizing the concept presents its own difficulties. So that you have a better chance of success in the long run, make sure the business is off to a good start. Here are some tips for legally setting up a business, hiring the first few employees, marketing services, and managing the opening.
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Part 1 of 4: Establishing a Business Legally
Step 1. Make sure you have a business plan
This plan is important for starting a business, and can be considered as explaining the business, product/service, market share, and how to grow it in the next 3-5 years. This plan is actually a "road map" that a business must follow in order to move forward.
- Writing a business plan offers a lot of useful information about the process, for example: determining the potential market and the elements of its exposure; identify business start-up requirements and start-up costs; identify potential investors, determine marketing strategies and plans; and make the document short, concise, and clear and end with an "executive summary." This is where you will "sell" your business to investors and interested parties.
- Check out these wikiHow articles to learn more about How to Start a Small Business; starting a small retail business such as a bakery; and specific things to start a business in a certain place, and more.
- To make sure you're ready to open, consult your local licensing department before starting a business. Typically, the core of each major section is divided into three steps below.
Step 2. First determine the legal structure of your business
Before starting a business and filling out the necessary documents, determine how your business will be legally structured. Generally, you can specify a sole proprietorship; partners; company, or in the form of PT. Each has its own legal and tax implications.
- Sole proprietorship means the business is owned and operated by someone. The owner also represents the identity of the business itself. This means that all profits, losses, debts and expenses are your responsibility. Choose this path if you are a sole proprietor and want to take full responsibility for the business.
- partner. Partnership occurs when two or more people share ownership with each other. In this type of business, each partner has the same share (unless regulated differently) regarding profits, expenses, and business management. This type of business is useful for accumulating capital and expertise in getting started.
- Company: a company is an independent legal entity and is owned by shareholders. Usually, this structure is not suitable for small businesses.
- Limited Liability Company (PT): A PT is similar to a partner, but its members are protected from personal burdens due to the actions of PT. For example, if a PT is sued, the personal assets of the partners usually cannot be touched. If you're concerned about personal exposure to lawsuits or business debt, this option might be a good choice.
Step 3. Establish the necessary legal structure
There are different procedures for shaping each of these structures, and some of them require a bit more work, while others are very simple. If you live in the US, details on each of these types of businesses can be found on the US website. Small Business Administration (SBA).
- Sole proprietorship is the simplest, as you don't need any formal action/ Just ask for a NIP, specify a business name (both described below) and you can enter the business income to get a refund of the remaining tax.
- PTs, partners, and companies are a little more complicated and require processing specific files. To learn the details of each, visit the relevant licensing department's website or contact them.
Step 4. Get NPWP (Taxpayer Identification Number)
TIN is used to identify businesses for tax purposes. Registering is quite easy, and can be done in just a few minutes via the website of the Directorate General of Taxes.
Be aware that partnerships or sole proprietorships may not require a TIN. However, you better keep it up. Without a TIN, a business will only be identified as something unofficial. TIN can protect the business from various sides.
Step 5. Register a business name
Unless you're running it under a personal name, such as "Business Home Furniture," most states require you to register a business name for tax and legal purposes. Registering a business name is done with the provincial government or local government office. Find out the specific requirements you must meet online.
Registering a business name usually only takes a few minutes. A business name will also be useful if you run a sole proprietorship. This way, you can separate it with a personal name. When you choose the sole proprietorship path, the business name will be automatically registered under the personal name, unless you have registered the one you want as the business identity
Step 6. Get a business license
The city or province in which you operate may require a business license. Usually, you can find the forms on your local website.
- All of these forms require type of business, address, number of employees, NPWP, and possibly information about income (may be an estimate).
- Keep in mind that licensing requirements usually apply to home businesses that are run online, as well as regular physical businesses. These requirements may vary by location, so make sure you contact your local and provincial governments to learn about them.
Step 7. Ask for any other required permissions
Unfortunately, each city or province has its own business licensing rules. These rules may include things like "Home Business Permit" for home businesses, "Alarm Permit" if your business requires the use of commercial alarms, or various alcohol and firearms permits.
Contact licensing or other local government authorities, or consult business associations and commercial associations for advice
Step 8. Set up a bank account for your business
Make sure you don't mix business and personal finances, as this can lead to problems with the TIN. Setting up separate bank accounts for personal and business transactions will also make accounting records easier and understanding tax requirements easier.
To open a business account, contact your local bank or credit union
Step 9. Contact a small business attorney or accountant for further guidance
Although sole proprietorship is quite simple, if you choose a PT, company, or partner, you must involve professionals.
Professionals can guide you in filling out the required forms, as well as help draft important partner documents. For example, in the form of a PT or partner, you must maintain documents that explain the meaning of ownership of each party. All of this must be explained legally in the applicable form
Part 2 of 4: Preparing to Open a Business
Step 1. Define the responsibilities of the employer
Before starting to hire staff, make sure you have taken the necessary steps to collect state and provincial tax requirements, provide employee verification, and obtain workers' compensation insurance, and any other requirements that may be required.
- One of the main, important obligations is to ensure that prospective employees meet the requirements to work in your country. If he is a foreign national, ask him to apply for a KITAS and work visa within three days after you receive it. You must also register documents to verify your nationality and license to work in Indonesia. These forms can be downloaded from the websites of the Ministry of Manpower and other relevant government agencies. Be aware that you may not need to register it with the Federal Government, but you should still retain it for three years after the date of lease or termination – with the reference being the first encountered.
- Make sure you register for workers' compensation insurance according to the requirements in your country/province (in Indonesia, you are required to prepare BPJS employment for employees).
- When hiring an employee, he or she must be able to present a personal taxpayer form. You must then send this form to the Director General of Taxes, so that you can legally avoid income tax.
- Additional information regarding employer and employment obligations is available on local government websites. Search online.
Step 2. Hire the right people
First impressions are important for starting a new business on a small scale, and unless you really want to work alone, this will at least be shared by the people you hire.
- Ideally, find someone who is familiar with your business – that is, someone who has already turned the dough if you run a pizzeria – but what is even more important is finding a candidate who is always eager and eager to learn. Find employees who are willing to learn new things and can represent the business in the way you want.
- However, you should still be willing to let go of your business a bit. Yes, he's been your child for a long time, but when you take him out into the world, you're going to need some help. Find employees who are willing to contribute ideas and adapt as the business goes through tough times in order to grow.
- Do your homework. View all the cover letters you've received. Contact the list of references provided by the applicant. Don't hire someone with a family relationship just to please them (wait until your business is independent and established first).
- Key questions such as "Can you give an example of a problem you solved successfully?" may offer input on a candidate's ambitions, personality, and work ethic.. However, keep in mind that these questions are fairly general, so the person you're interviewing may have prepared an appropriate answer (this way, if he can't answer, you know he isn't). Also, try to think of several hypotheses to solve a problem specific to your small business.
Step 3. Prepare your site
Both physically and virtually, the impression made on potential customers will determine long-term success.
- If your business involves a storefront – for example a candy store or a secondhand bookstore – lay out the layout properly to represent the vision for the business. Coordinate the color patterns and decor with the logo, or consider personalizing it with a family photo to make a connection between yourself and the business. Consider hiring the services of an interior designer and/or decorator.
- Having an online presence is essential for every small business, so don't underestimate this aspect. Especially if your business has a substantial web-based component, create a site that is intuitive, easy to maintain and fits into the identity of the brand you want to develop. Hire the services of a professional web designer.
- If your budget is tight and/or your business doesn't need a traditional storefront, don't spend a fortune setting up a fancy space. A local coffee shop can be a good place to meet clients, or you can rent space as needed. Wait until your business is solid enough before moving to a better place.
Step 4. Consider holding a “soft opening” period
There is no rule that says that your first day of business should also be the grand opening day. Give your business a chance to grow before announcing it to the world.
- A restaurant is perhaps the best known example of a business, which usually has a soft opening period -- for example a dinner service with invited guests, maybe even just friends and family members. However, the same concept actually applies to all small businesses. Send company landscape staff to spruce up relatives' homes in your area, lure friends over with a free pedicure, or convince members of your reading club to join in and discuss their life insurance needs.
- Officially open a business without a huge fan base, maybe only a week or two before the heavily advertised Grand Opening. Maybe people will just come and have a look, but this way, you've got everything set up before the serious customers arrive.
Part 3 of 4: Advertising Business
Step 1. Start from before
Don't wait until opening day, or even after you know when it will start. Be proactive in building brand awareness and developing anticipation. A "coming soon" sign on a storefront as you prepare is a good start, but certainly not enough.
- Save most of your initial marketing budget for the Grand Opening, but before spending it, create some budget-friendly options, such as brochures, targeted direct messaging, and a social media presence.
- Try to develop your brand before your location is even ready. If you're selling handmade necklaces or traditional gifts, look for local craft or food fairs and open a booth there to sell the produce. Make sure you advertise your presence beforehand. If you're an accountant, try volunteering a tax adviser at a local center or library (and handing out business cards).
Step 2. Determine the marketing budget
The preparation period for opening and the first few months is what will determine whether your business will thrive or crumble, so make sure you really put in the effort to market your business at an early stage.
- One suggestion is to dedicate 20% of your marketing budget to the Grand Opening. This number should be significant enough to spread the message widely when your ad is at its most effective, but at the same time, also not let you “put all your eggs in the same basket” so options for other marketing are limited.
- For example, spend IDR 45,000,000,00 to advertise the Grand Opening, because that amount is usually enough to advertise in two media. If the amount is beyond your capacity, you may be able to use a mixed method of brochures, direct messaging, promotional items (balloons, banners, etc.), and rotating signs at busy intersections (usually around Rp. 15,000,000, 00).
- This of course assumes that your marketing budget is quite large, for example, IDR 225,000,000,00 (20% of which is IDR 45,000,000, 00). Since many businesses can only afford to spend much smaller budgets (just a few million), always make the most of 20% of the total.
Step 3. Use traditional media
If your marketing budget allows it, consider using traditional media such as radio or newspapers. If you are also capable of managing television marketing, try diversifying your advertising methods.
- Before we dismiss radio as an outdated media format, know that three-quarters of adults in the US listen to radio at least every once in a while. They also often do it while driving. Thus, radio can be an excellent marketing tool for retail stores and restaurants. Target advertising based on its format (Top 40, Country, Talk, etc.) and time of day to maximize impact.
- Newspapers are a popular choice for adults over the age of 35, but even younger people sometimes read newspapers. Newspapers remain an effective choice to reach thousands of potential consumers.
- Consider using coupons too; Coupons will not only provide motivation but a clear connection between potential customers and your business. It will also be easier for you to track the level of effectiveness, because more coupons means the results are effective.
- You may assume that TV commercials will not be within your small business budget, but be aware that there are options for producing and serving lower-cost commercials, for example with the help of local broadcasting networks. Consider advertising at the same time as programs relevant to your consumer base – such as legal TV shows for lawyers' practice, or evening sports news for golf practice academies – to make you look like a big sponsor.
Step 4. Use social media
Even if you can't tell the difference between a tweet and a hashtag, or assume that your tailor shop doesn't need a social media presence, do your best to advertise. About 80% of small business owners use social media, mainly for marketing purposes.
- The appeal of social media marketing is its low cost and direct contact with potential customers, but remember that this has to be traded for a greater time commitment. Perform a detailed analysis of the existing customer base to try to coordinate brand identity and messaging across existing promotional platforms.
- As the social media platform continues to grow, you may be tempted to be as active as possible. However, don't overdo it. If your salon targets moms in their 40s who are likely to use Facebook, focus your energy there. Don't write all the time; a few times a week should suffice. You will definitely be busy with all the other details when opening a business.
- However, there are ways to connect different social media platforms. Consider this option if you can manage it without going overboard at a very busy time.
- A presence on social media is especially important if your business is online. In addition to social media, consider internet marketing with technology like Google Adwords. Adwords allows your business ad to appear whenever a user searches for certain keywords on Google. When someone clicks on your ad, you pay. For online-based businesses, this is especially important because it is able to convey it to a wider audience in the internet world. In addition, this method is also important for traditional physical-based businesses, because it is able to reach potential customers who are familiar with the internet instead of other media.
Part 4 of 4: Opening a Business
Step 1. Consider when to have a “grand opening”
As previously mentioned, you don't have to host this event on the first day of business. You are even advised to wait a few weeks before doing it.
Schedule a Grand Opening on a day and time that works for your product or service – Saturday morning if your business is a restaurant; Saturday night for the ice cream shop; beginning of the week for the martial arts studio
Step 2. Make it an event
Try to build a sense of interest in the days or even weeks before the Grand Opening.
- Use the term “Grand Opening” in marketing – it sounds more special than the usual “open for business” notice. Create fun by offering gifts, giveaways, demonstrations, special offers, etc. for visitors on that day.
- Hire a photographer to shoot the event for the sake of media consumption (both traditional and social). Include live entertainment, extra staff, even security if you anticipate high crowds.
- If your business and/or location is not conducive to accommodating large crowds during the Grand Opening, consider hosting an event such as a “launch party” at a nearby restaurant, assembly hall, etc.
Step 3. Guarantee a positive customer experience
Plan ahead of time and do whatever you can to ensure all Grand Opening attendees have a good impression of your business. Negligence such as insufficient parking space, long queues, or running out of toilet paper can make them disappointed.
- Set up additional staff to ensure customers don't wait too long for service or attention.
- If the problem may be a parking space, try to arrange in advance with another business or community group – for example you can arrange a parking space at a nearby church.
- Make sure attendees leave with a token – ideally something with your logo – and a coupon for a special offer on their return.
Step 4. Engage the community
Develop connections to local communities from the early days of the business. Let people imagine your business can have a positive impact on the community for years to come.
- Invite the local press to your event, but also community leaders and other local businesses. Network with as many people as possible and become part of a local community team.
- If possible, hold the Grand Opening with a community event, when the local community gathers. Make it look like a bigger celebration. Sponsor entertainment at holiday celebrations or mid-year festivals. Advertise both your business and deep connection to the community.
