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How to Start a Small Business: A Practical Guide for 2025

Starting a business today is easier than it’s ever been—but running one well? That’s a different story. From forming your entity to funding your first hire, the early stages can feel overwhelming without the right guidance.

At TEC Services Consulting, Inc., we’ve worked with hundreds of entrepreneurs—from solo founders to fast-growing startups—and we’ve seen what works (and what breaks) in those first 12–24 months. This guide walks through the essentials to get you moving with confidence.

Step 1: Define the Business, Not Just the Idea

Most people start with a product or service in mind. That’s good—but what’s the business model behind it? Who’s your customer? How will you price? Where will you get your first sale?

TEC Tip: Write a 1-page business plan first. Keep it simple: What are you offering? Who are you serving? How will you reach them? What will you charge?

Free tool:

Step 2: Choose the Right Legal Structure

Your legal structure affects your taxes, liability, and how you pay yourself. Common options:

  • Sole proprietorship: Easiest to start, but you assume all liability

  • LLC: Offers liability protection and flexible taxation

  • S Corp: Can reduce self-employment taxes, but adds complexity

  • Nonprofit: If your mission is public benefit

Most small businesses start with an LLC for simplicity and protection. You can file online via your state’s Secretary of State website.

Helpful link:

Step 3: Register Your Business and EIN

You’ll need an Employer Identification Number (EIN) from the IRS to open a business bank account, file taxes, and hire employees—even if you don’t have staff yet.

Apply for free here:

Also consider:

  • Registering for state/local taxes (sales tax, use tax)

  • Getting a business license or local permits

  • Checking zoning requirements if you’ll operate from home

TEC Tip: Keep a digital folder with copies of your formation docs, EIN letter, license, and insurance. You’ll need these when opening accounts or applying for funding.

Step 4: Set Up Finances the Right Way

This is where many new founders stumble. Don’t mix personal and business funds. Ever.

  • Open a business checking account (bring your EIN and LLC docs)

  • Get a business debit or credit card

  • Set up simple bookkeeping—start with Wave, QuickBooks, or even a spreadsheet

  • Budget for tax set-asides (aim for 25–30% of net income)

If you plan to seek funding (grants, loans, investors), accurate records from day one will save you time—and improve your chances.

TEC Tip: Not sure what tech to use? TEC can help you compare small business software for accounting, CRM, scheduling, and more.

Step 5: Build a Basic Tech Stack

You don’t need a full IT department, but you do need a plan:

Need

Tool(s)

Business email

Microsoft 365 or Google Workspace

Website

Wix, Squarespace, or WordPress

Payments

Stripe, Square, PayPal

Cloud storage

OneDrive, Google Drive, Dropbox

Accounting

QuickBooks, Wave, Zoho Books

Scheduling

Calendly, Microsoft Bookings

Cybersecurity

MFA, antivirus, secure Wi-Fi

TEC Tip: Use professional email from the start (e.g. you@yourcompany.com). It improves trust and deliverability—and is required for many business tools.

Step 6: Find Your First Customers

There’s no one path here, but the goal is to validate demand quickly. You don’t need 1,000 customers—you need your first 10.

Start with:

  • Referrals from your personal network

  • Free trials or discounted pilots

  • Social media and Google Business profile

  • Simple landing page with a clear offer and contact form

  • Cold outreach (if appropriate to your market)

TEC Tip: Talk to your customers early and often. What’s working? What’s not? Use that feedback to refine your offer.

Step 7: Protect What You’re Building

This is where most checklists stop—but it’s where long-term sustainability starts.

  • Use contracts (not just emails) for projects and services

  • Get business insurance: general liability, cyber, or professional liability

  • Set up cybersecurity basics: MFA, backups, endpoint protection

  • Keep software and devices up to date

  • Plan for scale: when will you need help with IT, HR, or bookkeeping?

TEC Tip: If your business involves sensitive data, payments, or remote work—set security policies early. We can help you build them.

Starting Strong with TEC

At TEC Services Consulting, we believe technology should empower entrepreneurs—not overwhelm them. We help small business owners:

  • Set up professional email and cloud systems

  • Compare software tools based on budget and needs

  • Protect devices with affordable, business-grade security

  • Plan for growth with IT you won’t outgrow

📩 Ready to launch smarter? Contact us at info@tecsinc.com or call 630-305-7486.

Let’s build your business on the right foundation.

 
 
 

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