Michigan is a state that is well known for being friendly to small businesses. That’s why it ranks in the top 11 of all the states for the number of startups yearly. So, if you are in Michigan and looking to strike out on your own, there are a few places better to make it work. However, it’s not as simple as having an idea and getting started. There are many things you need to do before you launch. 

You will need to make decisions about the nature of your business, for starters. Then, there is the paperwork involved in having a startup. You need to do your due diligence on both aspects so that you can be successful and so that you don’t face any regulatory, legal, or tax penalties. Assuming that you already have an amazing idea for a business, here’s all the information you need to start a business in Michigan. 

Do Some Research

Before you do anything, you want to make sure that your business is viable in the first place. Do some research into the market for the type of products or services you want to offer. Do some search engine optimization searches to see how many competitors there are out there. If the market is flooded, you may want to return to the drawing board. If you are able to conduct some focus groups to see if there is interest in what you want to provide. All of this research will not just give you an idea of if there is a market for your business but also an idea of your potential target market when you start to advertise. 

Build a Plan

Once you’ve done your research and have a viable plan in place, you must start planning your business. You have an idea of the market, so build some realistic revenue goals. You can also plan out your marketing strategy to determine what will give you a good return on investment. Business plans will provide you with a pathway to get from where you are at launch to where you want to be at least a year and more past it. It will help you keep your eyes on the prize and not overextend if you start to grow too quickly. 

Secure Your Financing

Launching a business takes money. Even if you are working from home, you will need a computer. You may also need a phone, storage space, and any number of costs, depending on the type of business you are starting. You want to have money for at least the entire first phase of your business. You can’t assume that you will make enough revenue right off the bat to cover your bills and other costs. You can self finance your startup, or you can look for investors to help. There is also the option of government grants and loans from financial institutions. For any outside help, you will need that business plan to demonstrate that your business is viable and will be profitable in the future. 

Decide On Your Business Structure

There are several ways for you to structure your business. If you are a sole proprietor, you will be the only investor and take on all of the risks. A limited liability company means that while you are the primary investor, you will have partners who will help with funding and share in the profits. You can also have a partnership, where you both share equally, or a corporation, where you must have a board and several invested parties. Whatever you choose will have implications for the risk you take on, how much autonomy you have, and how much money you can make. 

Get Insured

When running a business in Michigan, you must protect it as best as possible. The right insurance is the most important way to ensure that your business won't be destroyed should anything negative happen. For example, you could get sued, or a natural disaster could damage your business property. A vehicle used by your business could cause an accident, or you might be the victim of a data breach. Any of these scenarios could have devastating financial impacts, but having comprehensive insurance will ensure that you can keep the doors open and rest easy at night. 

Get a Business License

You should always get the appropriate business licenses for your business once you have everything in place. You may need municipal, state, and federal licenses to pay your taxes and ensure that you follow all by-laws and standards of your industry. For example, a restaurant will need a liquor license, and a medical waste facility will need safety certifications. Do not try to operate without the required licenses. You will only end up paying heavy fines and possibly getting shut down. It is very unlikely that you would get away with it. 

Get a Location

Your location for your business will depend on what type of operation you are running. If it’s a brick-and-mortar business, you will want to have a central location with parking, storage, and the potential for walk-up traffic. You will have to decide if it’s worth having an office or if you and any staff can work from home. Remember, renting or a mortgage will take up a significant portion of your expenses, so you must balance out the cost against how useful a location is. 

Get the Word Out

Finally, you need to market your business. Many small businesses and startups find great value in digital marketing. You can target social media ads and optimize your website for search engines (SEO). This will bring in more organic traffic since you will be near the top of search engine rankings. Be active on social media and allow your brand's personality to shine through. Remember to hit up your friends and family to tell others as well. Word of mouth is very powerful. For your launch, you may want to make a big splash on broadcast media to get out in front of as many eyeballs as possible. 

After that, it’s your time to bring in money. Provide excellent customer service along with your great products, and you will continue to bring in customers and grow your business. Michigan is a great state where you and your business can thrive.