If you’ve ever daydreamed about starting your own business, you’ve probably imagined yourself in the best parts of the job like launching a gorgeous website, seeing customers rave about your product, maybe even getting interviewed by Forbes about your meteoric rise. You’re thinking about creative control, flexible hours, and being your own boss.
What you’re not picturing? Sitting on hold with the IRS, staring at an Excel spreadsheet trying to make sense of your tax obligations, wondering how on earth to convince total strangers to buy what you’re selling, or struggling to set up a system for accepting payments that doesn’t make you want to cry.
Starting a business is exciting. It’s also, quite frankly, a minefield of confusion. And while you can’t plan for everything (hello, unexpected supply chain meltdown), having a solid grip on some of the most challenging aspects will make the process less overwhelming. Let’s break it down.
1. Figuring Out Who Your Customers Actually Are
If you’re launching a business, you probably have at least some idea of the people who might buy from you. But thinking you know your customers and actually knowing them are two different things. Your target customer is not just “anyone with money.” That’s a quick path to marketing that lands nowhere.
So how do you get from “I think people will like this” to “I know these specific people will buy it”? You need research. Not the vague “I asked my mom and she thinks it’s great” kind, but real, data-driven research.
- Look at existing businesses. Who is buying from your competitors? Read reviews, check out their social media followers, and see what problems their customers are trying to solve.
- Survey real people. Set up a simple Google Form and ask potential customers what they struggle with and what they look for in a product or service like yours.
- Build customer personas. Yes, it feels like a college marketing class assignment, but knowing that “Megan, 34, a busy working mom who values convenience over price” is your ideal customer will help you craft messaging that actually works.
The bottom line: If you don’t understand your customer, you’re essentially shouting into the void. And the void is very good at ignoring you.
2. Dealing with Taxes (a.k.a. The Least Fun Part)
Here’s something no one tells you when you start a business: Taxes are a thing. And they are complicated. The IRS does not care that you are a first-time entrepreneur who does not know what a quarterly estimated tax payment is.
Some tax basics to get your head around:
- If you make money, you owe taxes. (Yes, even if you haven’t actually paid yourself yet.)
- If you’re selling products, you might owe sales tax, depending on your state.
- If you have employees, you need to handle payroll taxes (which is a whole other can of worms).
- The IRS does not find “I forgot” to be an acceptable excuse.
So how do you handle this without losing your mind?
Get help. If numbers make you sweat, hire a tax professional. Even if you can’t afford ongoing accounting services, at least get an initial consultation. It will save you countless hours of stress and possibly prevent an unpleasant letter from the government. If you’re just getting started, you might also need IRS EIN number application help to set up your business correctly. If you’re just getting started, you might also need irs ein number application help to set up your business correctly.
3. Getting People to Actually Find Your Business (a.k.a. Marketing)
You could have the best product or service in the world, but if no one knows about it, it doesn’t matter. Marketing is how you take your business from “great idea” to “thriving operation.” But marketing can also feel like a black hole—especially when you see other businesses dropping thousands of dollars on Facebook ads while you’re still figuring out what a “conversion rate” is.
Where should you start?
- Pick one or two marketing channels and do them well. Instead of trying to be everywhere at once, focus your energy. If your customers are on Instagram, really show up there. If they prefer email, build a strong newsletter.
- SEO is your best friend. Learn the basics of search engine optimization (SEO) so people can find your website without you spending money on ads.
- Content marketing works. Blog posts, videos, and social media content help establish you as an expert in your field and build trust with potential customers.
- Word of mouth is gold. Encourage happy customers to leave reviews, tell their friends, and share their experiences.
Marketing doesn’t have to be about burning money on ads. It’s about getting in front of the right people in ways that feel natural and engaging.
4. Keeping Your Business Financially Afloat
One of the biggest reasons new businesses fail? Money issues. And it’s not always because the business isn’t making money. Sometimes, it’s because the money isn’t managed well.
- Separate your business and personal finances. Open a business bank account, even if you’re a solo entrepreneur. Mixing the two is a headache waiting to happen.
- Understand cash flow. You need to know how much money is coming in and going out. Profit is great, but if your cash flow is unpredictable, you might find yourself unable to pay expenses at the wrong time.
- Be mindful of expenses. It’s tempting to invest in fancy branding, the perfect office space, or high-end software right away, but prioritize spending on things that actually help you grow.
5. Managing the Emotional Roller Coaster of Entrepreneurship
No one tells you that starting a business is an emotional experience. One day, you feel like an unstoppable visionary. The next, you’re Googling “how to close a business without ruining your credit score.”
Some realities:
- You will doubt yourself. Even the most successful entrepreneurs have imposter syndrome.
- Things will go wrong. A supplier will flake. A customer will leave a bad review. You will have slow months. It’s normal.
- You need people. Having a support system—whether it’s a mentor, a business coach, or a friend who will listen to your late-night “am I making a huge mistake?” texts—can be a game-changer.
Starting a business is a mix of excitement, confusion, and sheer persistence. There’s no magic formula, but understanding the trickiest parts ahead of time makes the process a little less overwhelming. Expect hiccups. Expect frustration. But also expect the satisfaction that comes with building something that’s truly yours.
Now, go forth and conquer (and maybe set a calendar reminder for those quarterly taxes).
