The Sunshine State is routinely ranked in the top three states for starting a business, thanks in part to lower corporate taxes and a strong labor market. According to the Florida Department of State, over 628,000 new businesses were formed or qualified to transact business in Florida in 2024. Approximately 82% of the new businesses created were limited liability companies (LLCs), 12% were new for-profit corporations, and 6% were not-for-profit corporations.

If you are thinking about taking the plunge into entrepreneurship, the following are tips for starting a business that you will want to consider.

1. Create a Business Plan

Benjamin Franklin once shared these wise words – “If you fail to plan, you are planning to fail.”  Creating a business plan is often a step that new entrepreneurs skip, however, it is vital that you approach your new venture with a plan. A business plan should be your guide for everything as you start your business and grow in your first couple of years. Business plans should cover the following key areas:

• Company Overview: Provide details about your company’s structure, leadership team, employees, and the problems your business solves. Be specific, and list out the consumers, organizations, or businesses your company plans to serve. Explain the competitive advantages that will make your business a success. Are there experts on your team? Have you found the perfect location for your store? Your company description is the place to boast about your strengths and why you will be successful.

• Market Analysis: Share competitive research that will show you what other businesses are doing and what their strengths are as compared to your company. In your market research, look for trends and themes. What do successful competitors do? Why does it work? What is your competitive edge and how will you do it better?

• Marketing and Sales: The goal in this section is to describe how you will attract and retain customers. You will refer to this section later when you make financial projections, so make sure to thoroughly describe your complete marketing and sales strategies.
• Financial Projections: Provide a prospective financial outlook for the next five years. Include forecasted income statements, balance sheets, cash flow statements, and capital expenditure budgets. For the first year, be even more specific and use quarterly — or even monthly — projections. Make sure to clearly explain your projections and match them to any requests for funding. This is the perfect place to use graphs and charts to tell the financial story of your business.

• Funding Request: If you anticipate the need for financing, this is where you will outline your funding requirements. Clearly explain your monetary needs over the first five years and provide a detailed description of how the funds will be allocated – such as purchases of equipment, inventory, materials, and working capital to cover costs like payroll and other bills until cash flow covers them. Your loan provider will want to see that you have thought through all the relevant parts of starting a business and that you have a realistic and reasonable expectation of success.

Sound daunting? Keep in mind that you can seek guidance from your accountant or through one of the Small Business Development Centers  (SBDCs), located at major universities throughout Florida (and the entire country). SBDCs are non-profit organizations funded by the U.S. Small Business Administration (SBA), the Department of Defense, the State of Florida, and other private and public partners. They offer business owners assistance via their large network of no-cost business consultants, affordable classes and resources, and innovative tools to assist you with starting and growing your business. Key areas they can assist you with include business plans, financial projections, demographic information, and marketing data.

2. Obtain Relevant Licenses

Within your business plan, you should consider the best type of business structure for your company. This will have an impact on how you pay your taxes, along with licenses and registrations you may need to make with the federal and state government. Most businesses in Florida are required to register with the Department of State, which helps protect your personal assets by separating you from your business as a distinct legal entity.

When you register your business, you will want to create your business name and register with the IRS for an Employer Identification Number (EIN), which will be needed to open a business bank account and will be a necessary part of your tax documentation.

From there, you may need to register for specific business licenses, depending on your industry’s requirements. Some industries are regulated and will need permits for working in Florida before beginning operations. Construction, real estate, alcohol, and tobacco companies will need approvals from the Department of Business and Professional Regulation , while agriculture, food-service, gambling, security, and oil/gas companies will need to register with the

Department of Agriculture and Consumer Services

Other regulated industries may require a professional license to start your own company which may be governed on either a national or state level, for businesses in industries such as healthcare, legal and financial services, or real estate.

If you’re planning to open a physical business location, you should also check for various building, zoning and health and safety permits that you might need to occupy that space.

3. Check For Local Business Grants or Initiatives

Throughout Florida, there are initiatives available on both the state and local level that encourage businesses to help redevelop communities and hire locally as much as possible. For instance rural incentives can provide funding to businesses through tax refunds if they provide specialist support to rural communities.

High impact performance incentives and capital investment tax credits are also possible for businesses who are creating significant job opportunities and investing a large amount of money in the state. For certain sectors like biomedical technology, engineering, and clean energy, there are additional grants and incentives that can help fund your initial startup costs.

4. Establish a Banking Relationship

It is important to establish a partnership with a bank that understands the needs of your business and industry. The first task you’ll want to check off your list is opening a commercial checking account. You may need additional services such as a business money market account or business loans. New companies without a financial history may be a good fit for an SBA guaranteed loan. Cogent Bank’s experienced team of SBA lenders specialize in providing long-term financing to small businesses through the SBA loan guarantee program. Talk with your Relationship Manager at your local Cogent office. They will help you determine whether seeking an SBA loan makes sense for you and your business.

To open your business bank account, you will want to bring a copy of the formative documents for your business (articles of incorporation or operating agreement for LLCs), personal identification, and Employer ID number (EIN). You will also want to make sure you have registered with the Division of Corporations prior to opening a bank account.

By selecting a bank like Cogent Bank which specializes in working with businesses, you’ll benefit from the years of experience our business team brings to the table. We’re here to help you find the best banking products that work for your new business and assist you with your banking needs as you grow. Our consultative approach translates into a partnership in which we share our knowledge of the local market and key partnerships to help make your business successful.

5. Marketing Your Business

Your marketing strategy is on paper, but now it’s time to put that into practice. With a solid foundation in place, it is time to launch your business and start your journey to successful entrepreneurship.

Think about what your marketing budget looks like ahead of time and what channels will be most effective for you to promote your business. Work with other local businesses in your neighborhood for partnerships and cross-promotional activities where possible, so that you can benefit from their existing audience.

As your business grows, you’ll want to review and update your marketing plan accordingly. Gather and assess the data on what marketing channels have worked well so far so that you can invest more time and money in those areas. Assess the return on investment (ROI) you are getting from those channels and what new avenues you might want to explore as your business matures.

Moving Your Business Forward

When you’re ready to open a business deposit account, contact the commercial team at Cogent Bank. Whatever your business needs, we are here to help. You will collaborate closely with our team of experts who can provide you with guidance and resources that are specific to both your industry and your local market.

Stop by at a local branch today or contact us online to talk to one of our business team to find out more information on the services we offer and how we can help move your business forward!

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.