Starting a business and bringing a dream to life is an exciting time. But those first few years? They can be tough.
According to the Bureau of Labor Statistics, more than 20% of startups don’t make it past year one, and about half close within five years. The good news: with the right foundation, you can dramatically improve your odds of success.
If you’re thinking about launching a business, here are five essential steps to help you start strong and stay on track.
1. Start with a Solid Business Plan
A business plan isn’t just paperwork, it’s your roadmap.
It makes you think through key decisions like your business model, target customers, and growth strategy. It’s also essential if you plan to apply for financing or small business loans.
A strong business plan should clearly outline:
- What your business does and who your competitors are
- Your experience, education, credentials, and any licenses
- Funding needs and sources
- Available options such as personal assets to collateralize a loan
- Detailed marketing and sales strategy
- Financial projections and expected revenue growth
- Anticipated repayment sources
You’ll also need the correct North American Industry Classification System (NAICS) code when applying for financing which can also help with market research.
If you need help getting started, the Small Business Administration (SBA) offers guidance and downloadable templates on how to create a business plan. You can also contact free resources like:
These organizations offer workshops, mentoring, and real-world advice that can make a significant difference early on.
2. Know Your Market Inside and Out
Before you invest time and money, make sure there’s a true demand for what you’re offering. Lenders and investors will expect you to understand your target market so it’s worth doing your homework.
Ask yourself:
- Who are your ideal customers?
- What problem are you solving for them?
- How will you reach them?
- How large is your potential market?
- What trends could impact your business?
- What makes you different from competitors?
For consumer businesses, focus on demographics like age, income, and location. For B2B companies, think about industry type, company size, and decision-making needs.
You can gather valuable insights from:
The Florida Chamber of Commerce network is especially helpful for research , networking, and staying on top of industry trends. Local chambers of commerce organizations can also connect you with other business owners and opportunities in your community.
3. Choose the Right Business Structure
Your business structure affects everything from taxes to liability so be research thoroughly when deciding which is right for your situation.
Here’s a quick breakdown of common options:
Sole Proprietorship
Simple and easy to set up. You report business income on your personal taxes. However, there’s no legal separation between you and the business which means personal liability.
Partnership
Two or more owners share profits and losses. Roles and responsibilities are defined in a partnership agreement. Liability depends on the type (LP or LLP).
Limited Liability Company (LLC)
A popular choice for small businesses. It provides liability protection while allowing income to pass through to personal tax returns.
C Corporation (C Corp)
More complex and costly but offers strong liability protection. The business pays taxes separately from its owners.
S Corporation (S Corp)
Similar protection to a C Corp, but income passes through to owners’ personal tax returns, avoiding double taxation.
Each structure has pros and cons, so it’s wise to consult with a legal or financial professional before deciding.
4. Get Licensed and Registered
Once you’ve chosen your structure, it’s time to make your business official.
Here’s what you will need to do:
While Florida doesn’t require a general statewide business license, most counties and municipalities require a business tax receipt, even for sole proprietors.
Depending on your industry, you may also need federal, state, or local licenses. This is especially true for businesses in sectors like:
- Food service
- Agriculture
- Transportation
- Childcare
- Construction or regulated trades
Always check with your local government to make sure you’re fully compliant.
5. Secure the Right Financing
Most businesses need funding to get off the ground and grow with various options to consider.
SBA Loans
The Small Business Administration (SBA) offers government-backed loans with competitive rates and flexible terms. While there are several types of SBA-backed loans, the two most popular ones are SBA 7(a) loans and 504 loans. Cogent is an SBA-approved lender, offering quick decisions on approving SBA-backed loans including 7(a) and 504 loans.
Popular options include:
SBA 7(a) Loans
- Up to $5 million
- Terms up to 10 years (or 25 for real estate)
- Uses include working capital, equipment, refinancing, or real estate.
- Fixed or variable rates
SBA 504 loans
- Ideal for real estate, business property, or large equipment purchases
- Improvement of business assets with a useful life of 10+ years
- Can cover up to 90% of project costs.
SBA Microloans
- Up to $50,000
- Great for smaller startup needs
- Offered by nonprofit, community-based intermediary lenders.
SBA Express Loans
- Faster approvals (often within 36 hours)
- Up to $500,000
USDA Business Loans
Designed for rural business development, USDA loans support projects that create jobs in communities with populations under 50,000.
Borrowers may have their headquarters within a larger city if the subject project will create jobs in a town with a population of less than 50,000 people. Loans of $2 million to $25 million are available and can be used for a variety of business needs, such as working capital, buying, or improving real estate, acquiring inventories and equipment, business modernization, and business acquisition or debt refinancing if the loan will create or save jobs.
Traditional Bank Financing
Cogent offers traditional loans including:
Working with a local bank like Cogent can be especially valuable, offering local decision-making tailored to fit the needs of your business.
Build Your Business with the Right Partner
Every successful business starts with a solid foundation—and the right financial partner can make all the difference.
From securing capital to managing cash flow and planning for growth, having a trusted banker in your corner helps you make smarter decisions at every stage.
Visit Cogent’s business banking page to learn more, open a new business account, explore ways to streamline your finances with treasury management services, or check out our blog for small business banking tips.
Connect with a Cogent banker today and turn your vision into reality.
Disclaimer: The information contained herein is for informational/educational purposes only. The views and opinions expressed in this document may be those of the individuals and may not necessarily reflect those of Cogent Bancorp and its subsidiaries and affiliates, or the entities they may represent. Content contained herein may be used in connection with the advertising and/or marketing of products offered by Cogent Bank or Cogent Private Wealth. The material is not intended to provide or substitute for legal, tax, or financial advice or to indicate the availability or suitability of any Cogent Bank product or service. You should consult with a legal, financial, tax, or other appropriate professional(s) for your specific needs and/or objectives before making any decisions.
