Opening a New Business

Thousands of new businesses are started every week. Ninety-nine percent will fail within the first year. Primary reasons are; lack of capitalization and poor management. Actually the two go together. Whether you are starting a manufacturing firm, a service business or a distributorship, getting started is a multi-faceted and complex endeavor that can result in a profitable success or a costly failure. Read:

The biggest mistake, that most entrepreneurs make, is they really believe if they have a good idea the world will beat a path to their door and buy it. WRONG! Developing a product or service is only one-third of the equation. The other two-thirds require marketing and selling it. It is as important to invest money on marketing as it is developing the product. Remember the “Pet Rock” a multi-million dollar marketing success, which was all about PR and promotion. Read:

What do I mean, “market it”? Build a market demand, by advertising, developing sales inquires, lining up distribution channels and a method to SELL the product. This takes hard work (sales) and money (promotion). If given the option, I would rather invest my money in generating potential buyers clamoring for my product, than spend all my money on perfecting a product and have no potential sales.

If going into business were easy, everybody would have their own enterprise. Establishing a successful business is where professional marketing consultants are invaluable. An experienced ad/marketing firm will offer outside objectivity, counsel and direction to make your dream a reality or point out where you are wasting money. I have developed a CHECK LIST for new businesses that lays out the key elements applicable to most businesses.


Key elements, not necessary in chronological order.

1. Research prospective market products / services. 

2. Check out competitive and/or similar businesses.

3. Google prospective business name for conflicts and infringement.

4. Write a Business Plan outline.

5.* Consult with an experienced Marketing Consultant before proceeding.

6.* Select a company / brand name.

7. Choose form of ownership. Incorporate if necessary.

8. Estimate operational costs, 3 to 9 months until business starts making profit.

9. Engage competent Accountant, Attorney & Banker.

10. Establish a business address, email and phone number.

11. Obtain federal/state employer tax number.

12.* Establish a start-up (task) budget. Include all company setup costs, estimated for the first 3 to 6 months.

13. Open a business bank account.

14. Obtain all required permits, licenses, bonds and insurance.

15. Select suppliers vital to your company, establish relationships.

16.* Work with Marketing Consultant to develop a Marketing Plan.

17.* Establish a business I.D., Logo Design, Print Business Cards, Letterheads, Forms, etc.

19.* Develop Collateral (sales support material) Brochure(s), Catalog, Product Sheet(s), etc.

20.* Develop operational material: Contracts, order forms, operational material.

21.* Launch advertising and promotional media, PR, announcements, etc.

23.* Establish business operating procedures: answering phone, billing policy.

24. Interview staff and employees.

25. Orientation (training) of staff regarding company policies, goals and objectives.

26.* Announcement – promotion of business opening through PR,
, Direct Mail. Social Media and Advertising.

27.* Grand Opening Event!

28. Monitor customer input / response

29* Work with Marketing Consultant to build customer base and adjust marketing message.

•Consult with marketing professional For professional assistance to launch a new business in Orange County, contact Tom Smisek Marketing Consultants