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Guide to Starting a Small Business in Adams County

Guide to Starting a Small Business in Adams County

By: Lydia Hutter 

Note from Lydia: This guide can be used for starting a small business anywhere, but I have tailored the resources, information, and links specifically to fill Adams County and Wisconsin requirements. 

  1. Market Research
    1. Make sure that there is not a lot of competition to create a successful business. Gather information about potential customers and other businesses operating in the area. 
    2. Look at what businesses have been successful and what businesses have failed in the past. 
    3. Some questions that will help you get a sense of the market:
      1. Is there a demand for your product or service?
      2. How many people would be interested in what you are offering?
      3. What is the income range and employment rate?
      4. Where do your customers live and where can your business reach?
      5. How many similar options are already available to consumers?
      6. What are potential customers already paying for these alternatives?
    4. Gather information through surveys, questionnaires, community gatherings, and interviews. 
    5. There might be more businesses and industries competing for the same market and customers. Factor the level of competitiveness, potential threat of new businesses, and how to manage competitors' prices with the business prices. 

 

  1. Create a business plan 
    1. This is the foundation of the business. It is the map for how it will operate, structure and grow. It will be useful when securing loans, working with people, and getting investors. 
    2. It is important to go into detail for each section of your business plan. So investors and other people that want to work with the business can see the vision clearly. 
    3. Business Plan Template From Adams County Economic Development  

 

  1. Fund the Business
    1. The business plan will help figure out how much is needed to fund the business. 
    2. Identify how much money is needed for start up costs of the business. 
    3. Most businesses will fall under brick and mortar, online, or service. Each of them will have different start up expenses. 
    4. Begin by making a list of expenses and then estimate how much they will all cost. Add up all the expenses and categorize them into two different categories: one time and monthly. The one time expenses are the initial costs for starting a business. 
    5. Options for funding a business 
      1. Self fund a business by turning to friends, family, savings accounts, and 401ks. The benefit of this is retaining full control over the business. 
      2. Receive funding from investors in the form of venture capital, by giving up a portion of the business. 
      3. File for a small business loan through banks using the business plan created.
      4. If the bank says no to a loan, go through the U.S Small Business Administration and they will guarantee a loan.  
    6. Adams County specifically apply for the Adams County Economic Development Business Plan Grant. It helps support the development of small businesses starting in the county. It is perfect for funding small businesses without having to repay a loan. 
      1. Awards 2500 dollars every quarter. 
      2. ACED Business Plan Grant 
    7. Adams County Economic development also offers Business Development Loan Funds. They have four different options to choose from at the link below. 
      1. ADEC Loan Funds 

 

  1. Pick A Business Location 
    1. Business location is a really important decision to make as it can influence taxes, legal requirements, and revenue. 
    2. Pay costs for the region chosen to locate the business in. They can vary depending on the town and population. 
    3. Need to be aware of local zoning ordinances that are business specific and make sure the business is allowed to operate in the area. 
    4. There are some state, local, and federal government incentives for small businesses to locate in certain areas. 
      1. Adams County is in a Historically Underutilized Business (HUB)Zone program. 
    5. Wisconsin Economic Development put together a resource called Locate In Wisconsin. It helps find the perfect location for a small business and offers information on other competing businesses, commercial and industrial properties nearby. 
      1. Locate In Wisconsin- Available Sites 

 

  1. Choose A Business Structure 
    1. Business structure will affect how much taxes are, ability to raise money, paperwork, and personal liabilities. Can convert to other business structures in the future but there are restrictions based on the location of the business. 
    2. Most common business structures:
      1. Sole Proprietorship
      2. Partnership 
      3. Limited Liability Company (LLC)
      4. C Corp 
      5. S Corp 
      6. Benefit Corporation 
      7. Close Corporation 
      8. None Profit Corporation 
      9. Cooperative 
    3. You can combine different business structures to create the perfect one for your business. 

 

  1. Choose A Business Name 
    1. Pick a name that corresponds with the brand's identity and the types of goods or services offered. 
    2. After picking a name for the business, register it so it can be protected. 
    3. There are four different ways to register the business name. 
      1. The entity name will protect your business name on the state level 
      2. Wisconsin Department of Financial Institutions Business Entity File Online
      3. A trademark protects the name, service, and goods of the business at a national level. 
      4. Doing business as (DBA) name doesn’t legally protect the business name but most states require your DBA name if registered as an entity or trademark. Wisconsin is one of the states that require this. 
      5. Wisconsin Department of Financial Institutions Adoption of Fictitious Name or DBA name Pdf 
      6. Registering the domain name protects any online components of the business like the URL. 

 

  1. Register your Business 
    1. Registering the business creates it a legal entity. The steps to registering the business will differ depending on location and structure. 
    2. Some locations don't require the business to be registered. Others might only require the business to register their name. 
    3. In Wisconsin it is required to register with the State of Wisconsin Department of Financial Institutions for the business name and get a Business Tax Registration through the Wisconsin Department of Revenue. 
      1. This link combines both registrations into one spot for easy access and payments. 
      2. Wisconsin One Stop Business Portal Opening your Business
    4. Work with a registered agent in the state to receive and review all of the official documents and legal paperwork for the company. Either choose to do this step yourself or find a registered agent service. 
    5. Adams County follows the same regulations as the state level. 

 

  1. Get Federal and State Tax IDs
    1. These are also known as Employer Identification Number (EIN). It is like a social security number for the business. It will allow paying state and federal taxes for the business. 
    2. Federal tax ID numbers are necessary to pay federal taxes, hire employees, apply for business licenses and permits, and open bank accounts. Apply for an EIN right after registering the business. 
      1. IRS Apply for an Employer Identification Number 
    3. State tax ID numbers allow the business to pay state taxes. 
      1. Wisconsin Department of Revenue Business Tax ID Registration 

 

  1. Apply for License and Permits 
    1. Most small businesses need a combination of federal and state licenses and permits. 
    2. It depends on what activities the business is involved in, then apply to the right federal and state agencies to receive their license. 
    3. In Adams County follow the state ordinances and apply for any special licenses or permits specific to the business. 

 

  1. Open a Business Bank Account 
    1. Open a business bank account when to start spending and accepting money as the business and already have a federal EIN. A business account typically has checking, savings, credit cards, and merchant service accounts.  
    2. Business bank accounts offer personal protection, professionalism, and purchasing power. 
    3. To open a business bank account a business EIN, formation documents, ownership agreements, and business license are all necessary. 

 

  1.  Get Business Insurance 
    1. Business insurance protects against natural disasters, lawsuits, and accidents that could potentially ruin the business. 
    2. There are different types of business insurance but the most common ones include: 
      1. General Liability Insurance 
      2. Product Liability Insurance 
      3. Professional Liability Insurance 
      4. Commercial Property Insurance 
      5. Home-Based Business Insurance
      6. Business Owner’s Policy
    3. Steps to buy business Insurance. 
      1. Assess the risks of accidents, natural disasters, or lawsuits could have on the company. 
      2. Find a licensed insurance agent that can help find policies to meet the business needs. 
      3. Shop around to find the best rates, terms, benefits from several different policies and agents to find the best option. 
      4. Reassess every year as the business changes and develops so the insurance policy matches. 

 

  1.  Open the Business 
    1. Congratulations, the big steps are complete! Now focus on management and growth of the business.