How to Start a Small Business in Connecticut (CT)

Connecticut’s Most Popular Businesses

If you’ve thought about opening a business in the past, you have likely already considered what kind of business you’re interested in owning. However, if you want some more ideas, there are some popular avenues out there already you can capitalize on. Liquor stores, grocery stores, and ice cream truck businesses are quite popular within the state of Connecticut.

Planning Processes

There are many steps that go into opening your business, and some of them can be crucial to getting your doors open.

1. Pick a name

Depending on what business endeavor you choose, your name will be distinct and representative of what you want to own. A name will help you stand out. In Connecticut, there are some rules to keep in mind while choosing a name for your business, but don’t let these stop you from opening the store of your dreams.

While there are some rules to follow as a general rule of thumb, that doesn’t mean that you can’t choose a name that’s meaningful to your business. In the end, you will want to choose something that will show off your business’ values and goals. Your name is the first thing your customers will see and will be what they rave about to their friends and family. You want to choose something appropriate to your vision.

2.  Conduct market research

You can learn what your desired audience is looking for and what they respond best to through market research. You can also look at your competitors and see what you can take from their business ways.

3.  Choose a structure

To found a proper business, a business structure is needed. Depending on what kind of business you want to run, you can pick an LLC, partnership, non-profit, sole proprietorship, or corporation.

Registering in Connecticut

Once you pick the perfect business structure for your store, you will then need to register it with the state itself. More commonly than not, you will need to have your business’s name, employer identification number, a registered agent who controls your taxes, and your formation documents. Depending on what structure you did choose, the state may ask more from you. These may include certain certifications or possible meetings.

It’s All About Location

When you are choosing where to put your business in Connecticut, it is important to keep in mind that you want a location that will benefit you. Somewhere with high foot traffic and good word of mouth would be ideal. Within Connecticut, towns like Hartford and New Haven could be perfect. Of course, if you are looking to open a fully online store, this may not matter as much to you. The entirety of Connecticut is your oyster!

Focus on Banking

A huge step in creating a credible business is to open a dedicated business banking account. This will ensure that your own personal finances are separate from those of your store. This can also be possible through the use of a business credit card, so you can help keep track of transactions and create a good credit score.

All of this can do wonders, but having a bank accounting software or live accountant handle your business’ income, taxes, transaction history, and sales can make your life as an owner so much easier.

Insure Your Business

As your business grows, you will be more susceptible to risk and liabilities. To avoid any issues in the future, you will want to look into setting up an insurance plan for your business and workers. Options include Workers’ Compensation Insurance, General Liability Insurance, or Professional Liability Insurance. All of these can help you against any risks your business might face. In the state of Connecticut, Workers’ Compensation Insurance is required if you have one or more employees in your care.

Hiring Employees

When your business gets bigger, or you believe you are ready to start hiring employees—first of all, congratulations! That’s an amazing step to take. It also means you have to find people to represent your brand in the way you imagine it. Next to that, you will need to hire them legally by making sure you are registered with the IRS for Employee Taxes and reporting any new hires to the state of Connecticut.

Branding

Branding is a key way to get your desired audience through the door, while also representing what your business stands for and its values. Branding can be very important to get your business off the ground and promote it. Also, branding can show your customers what kind of experience they will receive from you and whom they are supporting.

What do you want your brand to represent?
How do you want to be seen by your customers?

Questions like these are perfect to help you set your goals and aspirations—and envision what you want your business brand to be.

After branding, a logo should be in order. A logo is its own type of branding, through the use of pictures or a few words. That logo will be on almost everything your customers see, so it should be engaging and interesting.

Get Online

If you are planning to open a business these days, you will want to create an online presence. To start, simply create a website. Make sure your brand and products are represented properly. A website can help you reach out to more customers and offer them a chance to see who you are and who they are buying from.

Social media is also important to show off your business. Facebook, Instagram, and TikTok are perfect avenues to showcase your brand. You can even sell straight from those platforms as well if you choose.

Online Business

A website will also be necessary if you are looking to open a strictly online store. If you need help, there are companies like Ecwid out there that help you create a website from scratch, while also helping with other online store needs.

On top of that, Ecwid can also help your online business grow by connecting your products to other selling platforms, like Facebook or Instagram. With your products in more places than one, you have the opportunity to get more virtual foot traffic and sales. Ecwid has a convenient dashboard that you can implement; see which platforms are doing better than others and track all of your sales. This dashboard also tracks your inventory as well.

Marketing

Marketing places a large part in the growth of your business. Depending on the size and goals of your company, you may want to put aside $250 to $1,500 a month for marketing.

Online and offline marketing can also offer distinct benefits as well. The tried and true business card, sign, billboard, or pamphlet can still do wonders. All the while, online marketing like Facebook, Instagram, or YouTube can also boost sales. You can buy ad space on platforms as well as set up social media pages from which to market your business.

Google My Business is also a great and free way to connect with your local audience. You can give them contact info, a summary of who you are, and pictures—all from Google.

Lastly, the good old email subscription is also amazing for talking about discounts and promos.