Ecwid for Small Business

How to Start a Small Business in Kentucky (KY)

Starting a business can come with a ton of responsibilities, but it can also provide so much personal growth and opportunity. Opening a business in Kentucky comes with a great number of specific benefits as well.

Kentucky is ranked 10th as far as low costs of labor and 13th in lowest cost of living. On top of that, Kentucky is 17th in lowest corporate tax rates.

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Kentucky’s Most Popular Businesses

To open a business, you need an idea of the type of business you’d like to run. The opportunities are endless, and fortunately, there are some fan-favorite businesses in Kentucky if you need some inspiration. Businesses such as campgrounds, goat renting, dog breeding, and drive-in movie theaters often perform well and are definitely ideas to look into.

Planning Processes

Every business needs a game plan when you are planning to open up your store. This plan can ensure you are going by the rules of Kentucky and get all your ducks in a row.

1. Pick a name

One of the first, and most fun, parts of starting a business is picking out a name. This is how you will be recognized and how people will know you. A name is a very important representation of your values and visions within the business. In Kentucky, there are some rules to keep in mind while choosing a business name, but don’t let these guidelines stop your creative process when it comes to naming your new store.

Once you have your name picked out, the rest of the process to open may seem even more exciting to get to as you want to share your business with the world as soon as you can.

2.  Conduct market research

Market research can be a great way to ensure you will give your customers service and products that they will love. This step allows you to learn their needs and wants from a business like yours. It also gives you the chance to see what your competitors are doing to gain customers in the field.

3.  Choose a structure

To run your business with better credibility and help against any liabilities, you will want to choose a business structure to run your store by. Be sure to pick one that represents your business and goals the best. This could be an LLC, sole proprietorship, partnership, corporation, or non-profit.

Registering in Kentucky

Now that you have picked the business structure that you believe suits your business best, you will want to register it with the state of Kentucky. When you do this, the state might ask for information like your business’s name, formation documents, employer identification number, and registered agent who takes your tax information for you. Depending on what structure you choose, the state may ask for different documentation or certifications.

It’s All About Location

When you choose a place to open your business in Kentucky, you want to pick an area to help your business grow. You’ll want an area with a lot of foot traffic, where your customers could frequent, and have good word of mouth. Cities like Louisville and Lexington could be places to look to first.If you plan to have an online store in Kentucky, the location may not matter as much for you.

Focus on Banking

When you open up your business, you will want to separate your personal and business finances. This will help keep better track of both whilst also keeping your personal assets safe.

You can do this by opening up a business bank account and making a business credit card. Both of these will help track transitions and also create a credit score for your business.

If you want even more help in the finance area, you could hire a banking account software or person to help handle your accounts and taxes.

Insure Your Business

As your business grows, you are more at risk for possible liabilities or troubles within the business. To help yourself in these times, you would need a proper insurance policy. Policies like Workers’ Compensation Insurance, General Liability Insurance, and Professional Insurance could help you as your business grows. No matter what, in Kentucky, it is required to have Workers’ Compensation Insurance if you have five or more employees.

Hiring Employees

Being able to hire employees can be a joyous time. It celebrates a growing business and an amazing product or service. When you go about hiring people, you can pick people with like-minded ideas and values. Hiring people just has to be done right. This means that you are registered with the IRS for Employer Taxes and reporting every new hire to Kentucky.

Branding

To help your business stand out, proper branding should be done. This is your opportunity to share your views and values as a business and attract your wanted audience. This is where you establish an experience for your customers.

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

Questions such as these can be great ways to help you figure out what you really want your business to look like and how you want to represent yourself. Next to branding, a logo is a great way to show who your business is. This little picture or set of words will represent your business and values on everything from a business card to a price tag.

Get Online

With our world being mainly virtual nowadays, being online can be important to spread awareness of your business. This could simply mean making a website where your customers can find you and see your information, values, and possibly even buy products if you would like. Whether you are an online store or not, being on other platforms like Facebook, Instagram, and Tik Tok can be great ways to grow your business and connect with your customers as well.

Online Business

If an online store is something you want, this has probably crossed your mind already. 
Creating an online presence like a website is the first step to an online store, and companies like Ecwid can help make your online store dreams a reality.

Ecwid is there to help you create a website or build upon one you already have made. They can also assist in getting your business and products spread out on other selling platforms like Instagram and Facebook. With having your name out in so many places, you may think it might be hard to keep track of sales or inventory, but Ecwid also helps you with that. With one simple dashboard, Ecwid shows you your sales from all platforms as well as what inventory you may be low on. If you want to open an online store more than a brick-and-mortar store, Ecwid could become your best friend.

Marketing

Being online is a great start to getting your name out there, but marketing is how you get the sales. On average, depending on the size and goals of your business, there should be a $250 to $1,500 budget set aside for marketing. This can be for both online and offline marketing.

If you want to do online marketing, this money can go towards buying ad space on Facebook, Instagram, or Youtube, as well as photography and videography. By having social media pages on those platforms you can market as well.

If you like to focus offline, you can use your budget for business cards, signage, pamphlets, or community events your business attends. A good mix of the two could be Google My Business. This is a free way to connect to your local customers and give them information on your store.

Lastly, the tried and true email or text subscriptions are a great way to send promos, deals and keep repeat customers.

Take that leap to personal growth and worldly opportunities. Open up your dream business.

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So you’re ready to start selling online. Now the million-dollar question… where do you start?

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For Surprises

Check out our blog series all about starting an online store without prior experience. It‘s sort of like our own ecommerce reality show—starring Nicole.

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We’ll help you navigate through the market and find the most profitable channels.

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Start Your Business Online

Starting a business online is faster and cheaper.
Transform it into an offline business later.

Start Selling Online

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