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How To Start a Small Business: 10 Steps To Build Your Dream From the Ground Up

By DeVry University

November 26, 2025

10 min read

Small businesses power our communities, drive innovation, and meet needs across industries. Whether you want to launch a side hustle, an online brand, or a scalable service business, your journey toward starting a small business begins with a strong foundation.
 

Entrepreneurship requires commitment, organization, and perseverance. But with the right plan, you can set your business up for success. In this guide, we’ll outline 10 essential steps to help you learn how to start a small business with confidence. Each step is designed to build momentum and guide you toward a sustainable, successful venture.

1. Refine your small business idea

Every successful business starts with a meaningful, sustainable idea. Good business ideas typically solve a specific problem, meet a demand, or tap into a personal passion — the best small business ideas often do all 3. Here are a few questions you can use to guide your idea refinement: 

  • What skills, experiences, or passions do you have? 

  • What needs could you solve in your community?

  • What sets your idea apart from similar business concepts?

  • Which industries are showing strong growth? 

  • What gaps exist in the market?

Consider your differentiators, motivations, and community impact. What makes your business idea unique, useful, faster, or more convenient than your competitors? Having a clear picture of how you'll set yourself apart helps you build a stronger foundation when pitching, marketing, and leading a team. 

2. Conduct market research

Understanding your target audience, your market’s challenges and opportunities, and how your small business fits into your community’s economy is one of the most important foundational steps of your venture. 

Before investing your time and money into a small business, it’s critical to gather as much insight as you can to refine your idea, test it against real-world scenarios, and adjust your strategy if needed. You can conduct small business market research by:

  • Analyzing competitors' pricing structures, social media presence, service offerings, and customer reviews 

  • Interviewing potential customers to hear what they think of your idea and how it solves their issues 

  • Running polls or surveys to test your concept and gather data

  • Studying your ideal customer profile based on demographics, preferences, spending habits, and online behaviors

3. Write a small business plan

Writing a small business plan helps you define your mission and create a living roadmap for your business. Your plan doesn’t need to be perfect — it just needs to be actionable, provide clarity, and adapt as your strategy evolves. Even a simple business plan can help you stay focused. 

Wondering how to write a business plan? Start by adding these sections to a Word document, spreadsheet, or deck:

  • Executive summary: A short overview of your business 

  • Company description: What you do and why

  • Product or service description: Details on what you're selling or offering 

  • Market analysis: What the competitive landscape looks like 

  • Organization and management: Who's running each department and how  

  • Marketing and sales strategies: How you'll attract and retain customers

  • Financial plan: Basic startup costs, forecasts, overheads, scenario planning, and ongoing expenses 

  • Appendix: Any extra info in research or references

Remember that your business plan can evolve as you grow your venture. Start with the information you know now and add more details as your idea takes form.

4. Choose a business structure

Once you’ve created the framework for your business plan, it’s time to consider which business structure best suits your needs. Your business structure has a major impact on how you operate legally and financially, so choosing the best one for you is an extremely important step toward small business ownership. Here are some of the most common structures:

Business structure
Definition
Choose this if…
Sole proprietorship A business owned and operated by one individual. There’s no legal distinction between you, the owner, and your business. You’re starting small on your own — like a freelancer, consultant, or side hustle — and want an easy setup with full control.
Partnership A business owned by 2 or more people who share profits, losses, and management. It can be a general partnership (equal responsibility) or a limited partnership (1 main partner and 1 or more limited investors). You’re launching a business with 1 or more partners and want to share responsibilities, costs, and decision-making. Great for co-founders or family businesses.
Corporation A business that is a separate legal entity from its owners. It can own property, enter contracts, pay taxes, and be held liable — offering the strongest personal liability protection. You plan to raise investment, hire employees, or eventually expand your company. Best for startups or businesses that want strong legal protection and room to scale.
Limited liability company (LLC) A business that combines elements of partnerships and corporations, offering flexibility in management and taxation while protecting owners (called members) from personal liability for most business debts. You want flexibility with how you manage and pay taxes — and you’d like to protect your personal assets while keeping your business easy to run. Ideal for growing small businesses.

5. Register your business and get a business license

Registering your business and getting a business license means that it’s official: You can legally operate as a small business. This is where your business becomes real. Follow these steps to get started registering your business:

  • Choose a business name that's unique in your state and reflects your brand. Visit your state’s Secretary of State website to search for available names and access registration forms. 

  • Apply for an EIN, also called an Employer Identification Number, through the IRS. This number is used for tax reporting and opening a business bank account. 

  • Obtain required licenses and permits based on your industry and location. Your city or county website and the Small Business Administration’s (SBA) License and Permits tool can help you determine what is required.

If you need more information or guidance, the IRS provides resources for tax registration and compliance. Additionally, the SBA offers helpful information about choosing your business structure, registering your business, and understanding federal and state licensing requirements.

6. Open a small business bank account

Opening a dedicated small business bank account is one of the smartest moves you can make early on. It helps you keep your personal and business finances separate, which protects your personal assets, simplifies tax filing, and builds credibility with customers and vendors.

When choosing a bank, look for low-fee accounts that understand the needs of small business owners and offer tools designed to help you manage, track, and grow your finances, like:

  • Business checking and savings accounts to track income and expenses separately

  • Online and mobile banking for quick deposits, transfers, and balance checks

  • Accounting integrations that connect to your bookkeeping platforms for seamless management of small business finances

  • Credit options like business cards or lines of credit to cover expenses and build credit

  • Merchant services to accept debit or credit card payments

The right banking partner can do more than hold your funds — it can help you manage cash flow, build credit, and grow your business with confidence.

7. Set up bookkeeping and accounting systems

Staying organized financially helps you feel confident and in control of your growth. You don’t need to be an accountant to manage your books effectively — resources like educational accounting programs can help you build foundational skills while digital tools make day-to-day bookkeeping easier for small business owners.

Start by choosing small business bookkeeping or accounting software that fits your needs. Platforms like QuickBooks, Wave, or FreshBooks can automatically track income and expenses, send invoices, and generate financial reports. If you’re just getting started, even a free spreadsheet template can help you categorize transactions and monitor cash flow.

Set aside time each week to review your accounts and keep receipts, invoices, and bank records organized. Consistent tracking helps you make informed decisions, identify trends, and plan confidently for growth.

8. Build your brand and online presence

Whether you’re starting an e-commerce business or opening a local storefront, having a visible and accessible presence is essential when it’s time to build your brand. The right setup helps customers find you, engage with your business, and start establishing trust.  

If you’re launching an online business, start with a professional website and e-commerce platform and make sure:

  • Your branding is consistent. Use the same colors, fonts, and tone across your website, logo, and social media. (For example, match your Instagram highlights to your site’s color palette).

  • Your product or service pages are clear. Include high-quality photos, transparent pricing, and short, benefit-driven descriptions.

  • You’ve claimed your business on relevant social media channels. Secure handles on platforms like Instagram, Facebook, and TikTok, and add your website link and contact info in your bio.

For brick-and-mortar businesses, your physical space plays a key role in the customer experience. Here are a few steps to build a brand presence when you have a physical business location:

  • Choose a strategic location based on your target audience. For example, open near a busy shopping area for fashion retail or in a neighborhood with high foot traffic for a coffee shop.

  • Invest in clear signage. Make your logo visible from the street, include hours of operation, and ensure your sign is well-lit at night.

  • Design a storefront that reflects your brand and invites people in. Add window displays, cohesive decor, or an eye-catching mural that communicates your brand personality.

Even traditional businesses benefit from having a digital footprint. Consider adding a Google Business Profile or a basic website so new customers can easily find your location, hours, and reviews. Resources like online courses and marketing degree programs can teach you to position your brand effectively and reach more customers.

9. Launch your small business

Now it’s time for the most exciting step of all: launching your small business. This is where all your hard work, dedication, and passion come together. Breaking your launch into phases can make the process easier to manage, build momentum and excitement around your brand, and allow you to make any last-minute tweaks along the way. Here’s a breakdown of launch phases and tips for success along the way:

Phase 1: Soft launch

Test your concept and gather early insights before going public.

  • Run a small preview for select customers. Invite friends, family, or social media followers to try your product or service and share feedback.

  • Offer early access perks. Try limited-time discounts or exclusive bundles to encourage engagement.

  • Collect feedback and refine. Use surveys or quick check-ins to identify what works and what needs adjustment.

Phase 2: Grand opening

Create excitement and make a memorable official opening.

  • Plan an event to build buzz. Host a launch party, ribbon-cutting, or live social media event to introduce your brand.

  • Engage your community. Partner with nearby businesses, local media, or influencers to spread the word.

  • Offer launch-week specials. Use limited-time deals or giveaways to draw in first-time customers.

Phase 3: Refinement

Focus on consistency and long-term growth after the launch.

  • Monitor feedback and optimize. Adjust pricing, processes, or promotions based on customer insights.

  • Keep your presence fresh. Update your website and social channels with new photos, reviews, or seasonal content.

  • Stay connected. Host follow-up events or highlight customer stories to maintain momentum.

10. Manage the first 90 days and plan for growth

What you do within the first 3 months determines the long-term success of your business. Remember, the first 90 days don’t need to be perfect, they just need to keep your momentum going, offer lessons you can apply going forward, and set the foundation for the future of your business. Here are a few tips to keep in mind during the first 90 days of small business management:

  • Monitor your cash flow diligently. Review where money’s coming from and where it’s going so you can spot issues early and adjust.

  • Minimize unnecessary expenses. Cancel business subscriptions you don’t use, negotiate better rates with vendors, and buy supplies in bulk when it saves money long-term. Ask yourself: Is this expense helping me grow right now?

  • Build strong relationships with customers and suppliers. Communicate clearly, pay on time, and show appreciation. Ask customers for reviews or referrals and check in regularly with suppliers. A simple thank-you note or follow-up can go a long way.

  • Pivot if something isn't working. If a product isn’t selling or a marketing channel underperforms, test a new strategy — like adjusting pricing, running a different ad, or shifting focus to a higher-demand item.

Once you’ve found what works, you might be ready to think about scaling and growth strategies. That could include:

  • Adding new products or services 

  • Automating operations using new tools 

  • Expanding into new markets or locations 

  • Hiring staff to offload time-consuming tasks 

Your small business, one step at a time

Building a business takes more than a good idea — it requires confidence, practical skills, and the ability to adapt. The good news? You have the passion, drive, and ability to make your small business dreams a reality. We hope this guide helped you see what’s possible when you take your journey toward small business ownership one step at a time.

At DeVry, we’re here to support you at every phase of your venture with continued learning. Whether you’re just starting or ready to scale, our flexible online courses, like our Graduate Certificate in Entrepreneurship, can help you dive deeper into the world of business and entrepreneurship.

Make your small business goals a reality

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The information presented here is true and accurate as of the date of publication. DeVry’s programmatic offerings and their accreditations are subject to change. Please refer to the current academic catalog for details.

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