NEW ORLEANS (press release) – LWCC, a private, nonprofit mutual insurance company and the largest workers’ compensation carrier in Louisiana, has issued a Business Startup Guide during Small Business Month in May. The Guide provides information on proving a business idea through customer discovery, building a business plan, filing for a business license, establishing payroll, insurance coverage, and other essential topics relating to starting a business.
“Starting a business takes vision, passion, and action. You may have the vision and passion, but acting on it can be intimidating, especially if you don’t know where to start. LWCC is here to help. Use this startup guide to turn your vision into action and your dream into reality,” states the LWCC Louisiana Business Startup Guide. The following information comes from the new LWCC Guide:
1. Prove your idea.
Before launching your new business, you have to understand your customers’ needs and wants, as well as their reaction to your product or idea. This is the time to get a customer’s opinion straight from the source.
- Customer discovery can separate a failed startup from a successful one. During customer discovery, you are testing and proving your idea by asking open-ended, objective questions. While it may be tempting to let your biases creep into your questions, that may taint the result. Remind yourself along the way that you are seeking an unbiased truth.
- What is your customer’s pain point? Good products solve a problem, be it software that can help identify personalized music recommendations or adhesive tape that can turn a screen door into a boat. The trick to a successful startup is to ensure that your product solves their problem.
- Customers will almost certainly tell you if your idea isn’t any good. Despite how criticism can feel initially, it can provide good feedback. Remember, customer discovery is about listening, not defending your idea. Make sure you truly hear what your customers are telling you and ask the same question several different ways until you understand the answer. Clarity is key.
- Pivot. Sometimes the information you discover by talking to your customers will require changing your idea or tweaking your product. Pivoting allows you to change with the times and market trends, keeping your company relevant. Unwillingness to adapt can be detrimental to your business.
2. Build a business plan.
Through market research and customer discovery, you have a sound idea for your business. To move forward, you need to make a plan. When driven by strategy, a great idea can become a great company. Without it, your great idea might be just that: an idea.
- Naming: Pick a name that resonates with you, something that will motivate you and something you’ll be proud to share. You’ll also want to make sure that the name you choose is available in Louisiana, as a URL, and as social media handles. When considering options, remember that the domain should be easy to find when people search for your business online.
- Sales: Remember all of those people you spoke to during customer discovery? Now it’s time to turn them into actual paying customers. Think about who you spoke to: What traits do they have in common? What are their preferred modes of communication and how often do they like to be contacted?
- Resources, roles, and responsibilities: What tools or equipment do you need to run your business? Who do you need on your team in order to get the job done? What are the unique roles and responsibilities required for you to succeed? When hiring people and building out your team, it’s critical to understand the roles you need filled as well as the type of people you want to fill them. The right team can make all the difference.
- Financial planning: It takes money to make money. Building out a detailed financial plan and model to establish a healthy business will ensure your burn rate isn’t greater than your cash flow.
Red Tape, Paperwork and Filing (Oh my!)
3. File for a business license.
There is a fair amount of paperwork involved in starting a business, and geauxBIZ is a great, one-stop resource. The site will help you create a checklist to keep you on track, register your business, file amendments with the Louisiana Secretary of State, and more.
4. Register for taxes.
- In order to hire employees and open a business bank account, you will likely need an Employer Identification Number (EIN), also known as a Tax ID Number.
- If you’re planning to sell a physical product (as opposed to a service), you’ll need to register for Louisiana Sales Tax. The site Truic has published a helpful Louisiana sales tax guide housing valuable information and useful links..
- If you’ll be hiring employees, you’ll need to register for Unemployment Insurance Tax and Employee Withholding Tax.
5. Set up your accounting, payroll, and benefits.
Once you have your EIN, you’ll want to set up a business bank account and credit card. Pick a bank account with low fees and good benefits. Check out the US Small Business Administration page for more information.
Online resources like Quickbooks and Gusto are great alternatives to hiring an accountant and/or HR rep.
6. Obtain the proper permits to operate your business.
You will need to comply with federal, Louisiana, and local government regulations. The US Small Business Administration is a great resource to inquire about the permits necessary for your business on the federal and state levels.
7. Obtain required insurance coverage.
The state of Louisiana requires every business to have workers’ compensation insurance, which provides financial assistance for injured workers and protects your company against lawsuits. Workers’ comp probably isn’t the first thing you thought of when considering setting up shop, but it is necessary.
If your new business is in an industry with a high risk of injury, you’ll need to find an insurance provider that will cover you even without an existing claims history. At LWCC, we are proud to say ‘yes’ to businesses of all sizes and types. We guarantee not only to write your workers’ comp insurance policy, but also to have our safety services team follow up to ensure that your business is operating as safely as possible and that the risk of employee injury is minimized.
- To find the best workers’ comp provider for your business, contact a local independent insurance agent. Your agent can also assist you in buying other forms of insurance you may want or need, such as medical and disability.
- If safety, security, and stability are important to you, ask your agent about LWCC and whether it is a good match for your business.
Launch with a bang!
8. Launch.
Every market is crowded and noisy these days, so you’ll want your launch to rise above with marketing efforts that resonate with your ‘customer persona.’ How you choose to go about it is a strategic choice, but every business should launch with a well-defined brand and digital footprint. Take advantage of the channels at your disposal. Social media and a well-designed website go a long way!
- A good website can build immediate credibility and trust. Ensure your website is easy to find, easy to navigate, and enjoyable to use. Tools like WordPress, SquareSpace, and Wix allow you to build a beautiful site yourself. If this isn’t up your alley, find a local web designer who can create a high-conversion site for you.
- Get the word out! Facebook, Instagram, LinkedIn, Snapchat, TikTok, Yelp — the outlets are endless. Determine which platforms work best for your business, develop a content plan, and do your best to stick to it. Your customers will likely turn to at least one of these outlets when looking for a business.
9. Don’t do it alone.
Starting a business can be scary. You’re putting yourself and your resources on the line. You’re filing a significant amount of paperwork, juggling several tasks at once and solving problems around the clock. It’s challenging, but you are not alone. There are many organizations designed to help entrepreneurs like you succeed.
- The New Orleans Chamber of Commerce has a webpage called Build a Roadmap to Your Dream Career with links to valuable resources.
- The Baton Rouge Area Chamber has a webpage dedicated to resources for small businesses and entrepreneurs, including organizations dedicated to uplifting small businesses, such as NexusLA and SCORE Baton Rouge Area.
- Additionally, the Small Business Administration (SBA) is a federal agency fully dedicated to small businesses and is another great resource to consider when getting started. The SBA provides access to capital, entrepreneurial development, government contracting, and advocacy.
At LWCC, we are Louisiana Loyal; we strive to elevate our state and help Louisiana thrive. As the largest workers’ comp insurance carrier in Louisiana, we realize this vision by supporting our neighbors and friends as they build businesses that contribute to our economy and better our communities. Our focus has been and will always be excellence in execution, from underwriting to life-long care of an injured worker. We hope that the results of our work inspire our partners and policyholders to trust us and be proud to work with us.
