Ryan Blythe

Tips for Starting a Business

BY RYAN BLYTHE

Considering that more people are rethinking their careers in the wake of the pandemic, it’s a great time to dive back into some tips on best practices for business formation.

Since 2016, the number of startups has surged from 3 million annually to 5 million last year, and the Service Corps of Retired Executives (SCORE) expects this trend to continue. Retailing saw a 74% increase in trade applications and 88% of those surveyed acknowledged the critical nature of online sales. The leisure industry, including hotels and restaurants, is seeing increased interest, with a 55% increase in business applications, and health services are up a whopping 23%.

The Small Business Administration lists 10 steps to building your business, starting with market research. Whatever you are going to offer, whether a service or a product, it needs to make sense for the space you are trying to reach. For example, it wouldn’t be wise to launch a welding school in Houston, since that market, due to oil and gas, is oversaturated. You do not need an MBA to be a successful business owner, but successful companies make real estate selection a significant part of their business model. That comes with studying traffic patterns, area development and other key factors.

Writing a strong business plan is critical. Without it, there is no foundation or structure to your company. I knew we were going to be a private school, independent of government funding. While we would not have the income stream of larger schools, our competitive advantage would come from independence.

Fund your business; a strong banking relationship is more important than ever, and don’t be afraid to spend money. Risktaking is fundamental in launching a business. If you do not have the stomach for this, stay in the employee category.

The next step is picking a business location, and Kennesaw and Acworth are excellent places to do business. I have experience in both cities, and the pro-growth environment is supported by government, large and involved business associations and, at the county level, an award-winning chamber of commerce. It can be expensive to do business in thriving areas like these, but there also is a strong potential customer base with disposable income.

There are a few steps that are not particularly exciting, but necessary. You need to determine how you want to register your business, which will impact taxes and liabilities. A good CPA can guide you through this process. You also will need to get a federal and state tax identification, and apply for any local licenses or permits that are required. Open a bank account with an organization that understands small business. You need a relationship with a business banker who can help you navigate complex transactions, such as real estate, equipment purchases, payroll administration and other key areas. Think community, not Wall Street, banks.

The final two steps are of enormous importance. First, choose your business name. This must reflect your brand and cannot be already in use. Once you have a great name, protect it. This is the step many fail to take. It costs money, but trademarks make your brand stand out. They prevent confusion, offer legal advantage and are valuable assets. Our intellectual property is vital, and it protects and identifies our work.

There is no perfect time to start a business. I started mine during the Great Recession. The stars never will align. You must be willing to take risks and work hard. High rewards can follow, but nothing is guaranteed.

Ryan Blythe is the founder of Georgia Trade School, which for the sixth consecutive year, was named one of the Cobb Chamber Top 25 Small Businesses of the Year.