6 Steps to Starting a Business in Michigan

Published on: 28 April 2021 Last Updated on: 31 December 2024

You’re finally ready to take that plunge, and the great state of Michigan is an ideal place to open a new business. Whether you’re setting up a shop in a quaint small town like Frankenmuth or a thriving metropolis like Detroit, you should take some critical steps to give your business the best chance of success. Every business is different, and no business owner will have the same path to opening day.

However, there are a few critical steps that every new enterprise must take to cover their bases and protect their investment, including:

1. Finalize a Concept:

Before you invest in opening a business, you need to know your concept, goal, and customer base. This includes how you’ll market yourself, how you’ll distribute your product and provide your services, and how you plan to grow and build on your success. Before you open your doors, know your industry and your place in the market and address all important considerations to ensure you don’t have to course-correct.

Having a solid business plan can save you a lot of money, especially when developing your branding and dealing with third parties to design your logos and advertising.

2. Register Your Business:

Before you can legally open your doors, you need everything to be in order with the government—both federally and locally. You must pay taxes, so make sure to get online IRS EIN Tax ID. You must pay taxes, so make sure you file with the IRS for a Federal Employee Identification Number. This helps formally identify a business in the eyes of the law.

Michigan has one of the more detailed and structured business registration laws in the U.S., so make sure you apply for any necessary licenses and permits before you open your doors. This could avoid costly fines and shutdowns later. It’s common for many businesses to need multiple permits, with specific commercial and industrial activities warranting independent certification.

3. Open a Bank Account:

You may have a personal bank account, but this isn’t the account you want to run your business out of. A business should have an independent bank account for several reasons, including greater liability protection for your personal assets and purchase protection for your customers. It also comes in handy during tax season when you need to identify business expenses.

Business accounts can accept credit card payments more efficiently and allow more opportunities for funding. Setting up a business account with a bank will give you access to a line of credit that can be useful if unexpected costs crop up or you need to make a significant up-front investment to get your business started.

4. Obtain Proper Insurance:

This is possibly the most critical step in setting your business up for success. Even if you do everything right, an unexpected disaster could put your business in a tight spot, and insurance gives you a safety net. You should look into property insurance and insurance on any valuable asset you have in the business. However, there’s one type of insurance that’s not only essential—it’s mandatory.

Michigan workers’ compensation laws require any business with three or more full-time employees or with one or more people for at least 35 hours a week to have workers’ compensation insurance. This insurance covers costs if an employee gets injured in the course of the job. This protects the employee and covers you as, in most cases, an employee gives up the right to sue when accepting workers’ compensation funds.

5. Hire a Strong Team:

A business is only as good as its employees. While many small businesses start with a shoestring team of their owner and maybe their family or some close friends, hiring your first batch of employees is a critical step. You should be able to trust these people with the fate of your business, so make sure to interview and vet each new hire carefully.

Ideal characteristics to look for include the ability to think on their feet, a history of commitment, and good people skills. Not every prospective employee has the experience you need for your business, so it’s ideal to have specific skills training plans. This also ensures everyone is on the same page when they first start.

6. Spread the News:

You’re almost ready to launch, but a business is only off to a good start when people know about it. This is especially important for a startup, and it’s better to spend smart on marketing than to spend big. This means knowing your customer base and knowing how to appeal to them.

Targeted advertising, both online and brick-and-mortar, is more effective than mass advertising. Even if you’re operating on a budget, don’t be afraid to start by offering promotions to allow people to sample your product or service for a lower price. This can be a great way to build long-lasting loyalty once they get a taste.

A Good Start Pays Dividends:

A business’ success or failure is often determined before they open their doors. These tips will protect your investment and increase your brand awareness. If you cover all your bases, you’ll have the tools you need to secure your spot in the market.

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Top Places You Can Sell Textbooks in 2021

Are you searching for the best places to sell your textbooks? With the cost of books alone being expensive, you should be. Here are some quick facts that you may not know: According to Bloomberg, since 2001, the cost of textbooks for college students has risen by 135%. Research by FinAid suggests that the cost of college increases about eight times every year. According to Experian, in 2020, student loans have surpassed credit card debt at $1.57 trillion. The list provided in this guide ensures you get a reasonable amount of your money back on your college textbooks. In addition, millions of students use these bookselling websites to acquire some of their money spent on books. It's time for you to do the same. So, if you're thinking of recycling your textbooks, hold on a second and answer the following questions before you take any action: Is your textbook in good condition? Are the textbooks collecting dust? If your answer is yes to both questions, use the following top places to sell your textbooks and earn the maximum amount of your money back. 5 Best Places To Sell Your Textbooks 1. Decluttr Decluttr is one of the best sites to sell used textbooks online. Aside from buying books, they also purchase other items such as DVDs, phones, CDs, and legos. If you're interested in video games, you can sell them online via Decluttr. The site is simple to use when selling your textbooks. All you need to do is visit Decluttr, select the textbook option, and enter the book’s ISBN. Afterward, you choose your book’s condition, and the company will offer you a quote. It’s that easy. If you accept the offer, Decluttr sends you a shipping label so that you can ship your textbooks. If you have a local UPS store in your area, you can take it to them for free. Once the company receives your package, you get paid through PayPal, check, or direct deposit. If you’re not interested in the money, Decluttr gives you the option to send your money to charity. 2. BookDeal.com If you’re looking for a platform that: Makes it easy for you to find the highest offers, Ensures easy selling process, Gives you protection with its unique Upload Book Photos feature, Offers a vast network of reliable book-buying companies, Ensures that you get paid, Then, we recommend BookDeal.com. The company has been in the bookselling business for more than 10 years. With gathered experience, they’ve learned how to make it stress-free and transparent for students to sell used textbooks. All you need to do is visit the site, enter your book's ISBN and get the highest price. From there, you ship your textbooks for free and get paid via PayPal, Zelle, or Venmo. It's that simple! 3. BookScouter BookScouter allows you to sell your books right from your smartphone device. The company has an app for you to sell your books. What you do is register, scan the ISBN codes of the textbooks you want to sell, and that’s it. The app will show you how much your textbooks are worth and the vendors that will accept them. BookSCouter works with many vendors, including Chegg and Amazon. You get the chance to select the vendor you prefer. When you select your vendor, you choose your book's condition and get your shipping label. Now, BookScouter is not the company that buys your textbooks. Instead, they are a third-party app that helps you sell books online. 4. Amazon Amazon is one of the best places to sell your textbooks online. The company started as a book retailer, and it's still a significant place to sell books online. Now, you have two ways to sell on Amazon. The first step is to create a list as an Amazon seller. That means you’d take care of the product pricing, create shipping labels and send it to the post office yourself. As long as you have the time, you can get more money in the end. If you have the time, you can use the second option. This option is for you to undergo Amazon’s trade-in program. There are questions about your textbook’s condition to answer, and if you agree, you get a shipping label. After you send your books and get verified by Amazon, they’ll submit your payment to you. 5. ValoreBooks You can sell and rent your textbooks on ValoreBooks, which can be a helpful platform for college students. However, they are a lot pickier compared to other sites. That means if your book is not in good condition, there's a slight chance of selling on the platform. Regardless, they offer the best place to sell your books. Final Thoughts If you want the best place to sell your textbooks online, we recommend checking out the list provided in this article. However, if you're planning on making bookselling a side business, we recommend that you do your research before you begin. However, with these lists, you are guaranteed to make the most amount of money you can get from your textbooks. Read Also: How to do bookkeeping in Malta minus complications 6 Ways You Can Secure a 4.0 in College 5 tips for college students on how to begin investing using pocket money

6 Crucial Aspects to Consider Before Starting a Business

Starting a business today is easier than it has been in previous years. This is a great advancement that has seen entrepreneurship soar. With this, you find that starting a business is a solid investment that allows people to cater to their needs. However, doing this requires you to ensure that you have a solid foundation and plan for its success. Going into business without this will only lead to failure in the long run. Statistics show that 20% of small businesses fail in their first two years, 45% within the first five years, and 65% during the first ten years. This goes to show that long-term success is not something that you should take lightly. It takes a lot of planning and effort if you want to see your business go to greater heights. Here are a few things to consider before embarking on this journey. Business Plan and Goals: When starting your business you need to ensure that you have a solid business plan. Your business plan should clearly outline your goals as a business. To ensure you set goals that will propel you forward, use the S.M.A.R.T method. It says you should set specific, measurable, achievable, realistic, and time-bound goals. This will get you in the right mind frame and allow you to move on to the next step. Once you've set your goals, you also need to ensure that you lay down actionable steps that will get you to your desired goal. Doing this ensures that you start on the right foot increasing your chances of business success. Products or Service you Provide: One of the most important factors you need to consider is the product or service you are bringing into the market. The first question you need to answer is if you'll be meeting a need that people have. This will allow you to invest in the right kind of products and services to sell. For instance, with the Covid 19 pandemic, one of the most in-demand products is hand sanitizers. Since there is already a demand for this, you can be sure to make sales if you position your business right. If you'd like to learn more about sanitizers and the business aspects click here. Figuring out your products or services will also give you the chance to find your target audience. It is essential to learn more about your target clients to ensure you work towards serving them. It will help you avoid putting too much time and effort into pitching people who do not need what you are offering. Marketing Strategy: The best way to get people into your business and grow your name is by marketing. Marketing will allow you to reach out to people who would otherwise never get to learn about your business. To do this, you need to ensure that you have a marketing strategy in place. Many businesses have shown that the best marketing involves helping your clients first and they'll trust your brand. To do this, providing useful information that they can apply in their life is a great step. For instance, if you deal with baby products, give information about how the products will help and inform your audience. To get a better understanding check out babylic.com. Marketing can be done in different forms from word of mouth to digital marketing. Find what works for you and run with it. Employee Acquisition: If you plan to have help in your business and delegate a few tasks, employee acquisition will play a major role. When it comes to getting help from other professionals, you need to ensure that you conduct proper interviews to ensure that they understand your business. This is the best way to ensure that you hire people who are invested in the growth of your business. When it comes to hiring help, you could either decide to get people who will be reporting to the office daily or work with remote workers. For remote workers, you get to avoid several logistical aspects but you have to ensure that you familiarize yourself with the digital space. This will ensure that operations run smoothly. Business Logistics: In business, you need to figure out what logistics you'll be dealing with. This will help determine the capital you'll require to get started and keep running the business before it gains momentum. The first thing most businesses consider is having a rental space where they can easily liaise with clients and also work with employees. On the other hand, some businesses don’t need to get a physical location and can run their businesses from home. For instance, if you run an interior design business where you remodel people's homes, you could just get started from home. All you need is to ensure that you have your marketing strategy in place. Additionally, consider having a website that showcases your knowledge in the industry. Check out Guyabouthome to get the best example of how you could go about it. Legal Aspects: The most important bit in every business is the legal aspect that you should take a keen look at. For this, you find that you'll need licenses, permits, and tax compliance letters among others. However, these requirements are different in every country which means you need to liaise with your respective authorized agents. Additionally, hiring a lawyer to work with on the legal aspects will take away the guessing games and reduce the time spent. Conclusion: Starting a business is easier now and more people prefer being bosses. However, having something successful requires a little more investment in terms of planning. Be sure to go through the steps outlined to ensure you get the best results from you your venture. Read Also: Key Components for Your Marketing Stack Tips on Doing Search Engine Marketing (SEM) for Businesses Crucial Role of Content Marketing in Local Business

The Definitive Lean Startup Guide: Everything You Need To Know

The lean startup methodology is revolutionizing the way companies launch and grow. But what exactly makes this new methodology so valuable? Lean startup provides both inspiration and practical tools to make that achievable. So if you're gearing up for a new venture, take a close look at how this approach can help you maximize your chances of success! While the journey may present challenges, the potential rewards make it all worthwhile. Read on to get the full rundown on maximizing lean principles to build your next business. Introduction To Lean Start-Up:- At its core, lean startup is all about taking an experimental approach to creating and managing startups. However, the methodology emphasizes rapid iteration, customer feedback, and eagerly testing ideas to reduce risks and uncertainty. Thereafter, take a look at the chart below to get more clarity on the major benefits of lean startup methodology. Some standout lean startup principles include: Validated Learning: Rigorously testing hypotheses and getting hard data from real customers to validate if a product or strategy is truly viable. Failures become learnings. Build-Measure-Learn: Using feedback loops to build minimum viable products (MVPs). This helps in measuring their real performance and learn from results to improve the next iteration. Innovation Accounting: Tracking meaningful startup metrics like customer acquisition cost rather than vanity metrics like total users. Persevere Or Pivot: Using validated learnings to determine whether to persevere on the current path or pivot by changing the product, strategy, or even the entire business model. Thus, following these core concepts allows startups to maximize learning while eliminating wasteful practices that drain resources. Comparing Traditional And Lean Startup Approaches This table provides a clear visual comparison between the two approaches, highlighting their key differences. Focus In-depth upfront planning Rapid experimentation Traditional Business Planning Lean Startup Methodology Decisions Based on projections and assumptions Based on real customer data Progress Follow a fixed roadmap Continually re-evaluate based on feedback This comparison table highlights the major contrasts between traditional planning and the lean startup methodology in a visual format. Harnessing Innovation Accounting For Lean Startup Success One important lean startup principle is innovation accounting. Unlike traditional accounting, which focuses on financial metrics, innovation accounting uses lean startup methodology. Besides, it helps to track actionable metrics that offer insights into the startup’s progress and customer response. Some examples of metrics used in innovation accounting include: Customer acquisition cost Churn rate Lifetime customer value Active usage metrics By diligently tracking these metrics, lean startups can gather the data they need to determine whether to persevere on their current path or pivot based on customer feedback. Thus, innovation accounting provides validated learnings that inform smart business decisions. It is opposed to vanity metrics like total customers or sales. The Lean Process Step-By-Step While the lean startup methodology is flexible and adaptable, there is a rough process that generally guides its implementation: Step 1. Identify The Problem The first step is to take time to clearly identify and articulate the specific customer problem or need that your startup aims to address. Now, you must ask questions like: What underlying frustration or pain point are customers experiencing? What needs are going unmet in the market? What improvements do customers wish existed? The issue should be urgent pervasive in the target market. Moreover, they are aligned to a sizable potential customer base. Hence, avoid vague problem statements. Get ultra-clear on the exact problem. Step 2. Define The Solution Once the problem is precisely defined, brainstorm potential solutions. Outline an initial product or service concept that could feasibly address that problem in a novel way. Moreover, think creatively about different approaches, features, and minimum requirements that could satisfy customer needs. At the same time, focus more on figuring out the right broad solution rather than detailed requirements at this stage. Step 3. Build An MVP Next, construct a minimum viable product (MVP) to test the solution. The MVP is a prototype that has just enough critical features to validate the core idea and start the learning process. Hence, avoidover-engineering at this stage. Build the simplest, fastest, most stripped-down representation of the product that enables validated learning. It can be as simple as a landing page description, mockup, or very basic prototype. However, the goal is to waste the least amount of time and resources. Step 4. Test And Measure Get the MVP in front of real customers to test assumptions. Approach target users, share the MVP, and collect key data based on how they react and interact with it. Focus on defining and measuring a small set of actionable metrics that offer insights into customer behavior, needs, and preferences. Example metrics include sign-up rates, clicks, conversions, usage data, etc. Step 5. Learn And Iterate With data and feedback collected, analyze results to determine what resonates with customers and what doesn't. Figure out key learnings, positive signals, and areas for improvement. Use these learnings to rapidly tweak and tailor the product through iterative changes. Make small refinements and run additional small tests to continue validating the product direction. Step 6. Scale Once product-market fit has been achieved based on metrics and feedback, it’s time to scale. Come up with plans for expanding business processes, operations, marketing, and resources to drive growth. Executing this rapid build-measure-learn loop cost-effectively allows startups to gather data, fail fast, and iterate their way to success faster. “Companies that prioritize experimentation are 2.5 times more likely to outperform competitors.” Lean Startup Success Stories Plenty of today's hottest startups have leveraged lean methods to skyrocket growth: Airbnb: Grew from renting air mattresses in a living room to a $100 billion hospitality disruptor by constantly testing innovations. Dropbox: Exploded from 100,000 users to over 4 million in just 15 months thanks to growth hacking experiments. Groupon: Pivoted from a collective action platform to become the massively successful daily deals leader. Zappos: Originally only sold shoes but iterated into an online customer service powerhouse after recognizing bigger opportunities. The flexibility of the lean framework lets startups fluidly adapt and uncover breakthrough ideas. Top Lean Startup Challenges Adopting lean startup practices comes with hurdles, including: Letting go of old habits: Requires shifting away from linear execution plans and embracing experimentation. Ambiguity: The constant pivoting and iterating can feel disorganized compared to having a fixed roadmap. Need for patience: Repeated rapid testing is meticulous. Results and traction take time. Institutional resistance: Established organizations may reject lean approaches that disrupt existing norms. However, committing to small experiments, tracking meaningful metrics, and iterating products judiciously can help overcome these roadblocks. Adjusting mindsets is essential. “Over 70% of startups say their corporate culture is not suited for rapid experimentation.” Tracking Lean Startup Success Instead of vanity metrics, lean startups should focus on actionable metrics that offer real value: Churn rate: The percentage of customers that disengage over time. Lower is better. Customer lifetime value: How much revenue each customer generates on average. Want to maximize. Cost per acquisition: The amount spent to acquire an average customer. Should decrease. Net promoter score: Quantifies customer satisfaction and loyalty. Positive trends are ideal. Monitoring these unique metrics ensures startups have data-driven insights to guide smart pivots and growth. Key Takeaways Lean startup emphasizes rapid experimentation and customer feedback over detailed upfront planning. The core methodology follows a process of identifying problems, defining solutions, building MVPs, testing, and iterating. Tracking actionable metrics helps startups make data-driven decisions about pivoting or persevering. Well-known startups like Airbnb and Dropbox leveraged lean principles to fuel incredible growth. Lean startups fail fast and cheap, learning critical lessons in the process. Adopting lean startup practices requires adjusting mindsets away from linear execution plans. Patience is key, as measurable traction takes time when running rigorous experiments. Conclusion The lean startup methodology offers a modern, nimble approach to launching and growing a successful business. However, by focusing on rapid experimentation over detailed long-term plans, startups can quickly adapt to markets and build products that customers love. While adopting lean startup practices requires adjusting mindsets, the benefits are game-changing. Instead of huge upfront capital investments, companies can take small risks, learn quickly, and uncover breakthrough innovations. Dive in to start reaping the many rewards of the lean startup philosophy. The keys to your next game-changing startup await. Lean Startup FAQs Let's go over some common lean startup questions: How does lean startup differ from traditional business planning? Traditional plans focus on in-depth upfront research and analysis. But lean emphasizes quick experiments and adapting based on customer responses. What types of startups is lean startup best suited for? The methodology can benefit all startups regardless of industry or business model. However, it may offer the most value for highly uncertain, innovative product ideas. Are there tools that can help adopt lean practices? There are various low-code tools for building MVPs fast, analytics for tracking key metrics, and more. Lean startup guides like Eric Ries' book provide foundations. Read Also: How Inspirational Speakers Like Tony Robbins Can Help Your Business Alternative Business Financing – What Is It And How Do You Do It? Starting A Small Business – Finding Your Target Market And More

6 Steps to Starting a Business in Michigan

1. Finalize a Concept:

2. Register Your Business:

3. Open a Bank Account:

4. Obtain Proper Insurance:

5. Hire a Strong Team:

6. Spread the News:

A Good Start Pays Dividends:

Read Also:

Starting A New Shoe Business: Here Are 5 Areas You Need To Concentrate On

Do You Need A Restaurant Consultant to Open A Restaurant?

Content Rally

Content Rally wrapped around an online publication where you can publish your own intellectuals. It is a publishing platform designed to make great stories by content creators. This is your era, your place to be online. So come forward share your views, thoughts and ideas via Content Rally.

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Related

Top Places You Can Sell Textbooks in 2021

6 Crucial Aspects to Consider Before Starting a Business

The Definitive Lean Startup Guide: Everything You Need To Know

6 Steps to Starting a Business in Michigan

1. Finalize a Concept:

2. Register Your Business:

3. Open a Bank Account:

4. Obtain Proper Insurance:

5. Hire a Strong Team:

6. Spread the News:

A Good Start Pays Dividends:

Read Also:

Share this Article

Starting A New Shoe Business: Here Are 5 Areas You Need To Concentrate On

Do You Need A Restaurant Consultant to Open A Restaurant?

Content Rally wrapped around an online publication where you can publish your own intellectuals. It is a publishing platform designed to make great stories by content creators. This is your era, your place to be online. So come forward share your views, thoughts and ideas via Content Rally.

Leave a Reply

Popular

Follow Us

Recent

Related