How to Start a Small Business in Texas (TX)

Best Business Ideas for Texas

If the only thing you know about your small business is that you want to start one, that’s okay! Here are some small business ideas that are particularly popular in Texas:

• CBD oil business
• Fuel station
• Drive-in movie theater
• Specialty grocery store
• Western-themed restaurant

Whatever you decide, you’re going to need to draft a solid business plan.

Planning Processes

Drafting a business plan can be daunting, we get it. That’s why we have a step-by-step instruction guide to drafting up a successful business plan.

1. Playing the name game

Choose a name for your business that is straightforward and doesn’t leave your customers wondering what you do. While there are some rules and regulations for naming your business, don’t let that discourage you. For example, It’s Fry Noon is an excellent name for your Western-themed restaurant.

2.  Conducting market research

It’s crucial to get to know your market. Do search engine optimization research. Hold focus groups. Conduct surveys. You may find out surprising things! It’s Fry Noon found out it may not have the customer market it originally thought it would.

3.  Structuring your business

LLC, corporation, nonprofit, partnership, sole proprietorship: which is best? It depends on what your goal is. Registering as an LLC provides favorable tax treatment, while a nonprofit is funded by donations, as opposed to investors. It’s Fry Noon would likely work best as a corporation, LLC, partnership, or sole proprietorship.

Registering in Texas

Get all the info you need about your business. Get your business’ name, the employer identification number (EIN), and the name of your registered agent, then file those formation documents. Depending on the structure you choose, you may need different documents.

Congrats: It’s Fry Noon, PC is now an officially recognized business in the state of Texas!

Best Location for Your Business in Texas

Before you make any decisions on where to set up shop, determine what your goals for your business are. Do you anticipate growth? Will your business rely heavily on foot traffic? If so, it may be a good idea to consider getting an office space in a heavily trafficked area, such as Austin or Houston. Whether you decide to operate out of your kitchen or the nicest office you can find downtown, you’re going to need proper documentation. It’s Fry Noon who has decided to rent out a restaurant space in Austin.

Banking and Accounting

It’s a good idea to separate business and pleasure, and accounts are no different. We recommend having a separate banking account for your business. This not only allows you to keep better track of your business expenditures, but to protect your personal assets should your business get sued. We also recommend opening a line of credit in your business’ name, as having established credit makes your business more attractive to potential lenders. You should look into hiring a business accountant, as they can help you save thousands in business expenses!

Ensure Your Business Is Insured

Business insurance is crucial to growing your small business in Texas. It’s a way to ensure your business avoids any unknown risks, like an employee stubbing their toe on the property, or an armadillo digging little holes all around your yard. In Texas, no business is required to have insurance. However, we recommend having general insurance, workers comp insurance, and/or professional liability insurance to protect you on a rainy day.

Permits and Licensing

You want to make sure your business is operating legally, so it’s important to make sure you have all the proper permits and licensing. Depending on your location and type of business, you’ll have different requirements. The best way to determine what they are is to conduct a search on a federal and state level, or call your local clerk’s office and ask them directly. We recommend hiring a professional for this step to ensure you don’t skip over anything.

Hiring Employees

The hiring process is an exciting step as you plan a new business. This can be the first time it feels “real” for many entrepreneurs. However, it’s important to ensure your hiring practices are legal. This includes ensuring you’re registered with the IRS employee taxes, reporting all new hires to the State of Texas, and enrolling for unemployment tax with the State of Texas. Once you have your perfect team set up, we recommend setting up a payroll system. This not only ensures employees get paid on time, but it can help you manage your tasks as a business owner.

Branding

Branding is fun for some, miserable for others. How do you brand your business to stand out competitively? First, start with the logo. Make sure your logo is representative of your brand and what you offer, then make sure it’s visually pleasing to your customer. Fry Noon thinks warm-toned colors with a “Western” font works best to express what they do. You may decide soft, calming colors work best for your brand. There is plenty of software online that can help you if you’re stumped, too.

Branding also requires you to think about what your values are as a company. Do you believe there are entirely too few Western-themed restaurants in the world? Do you believe themed restaurants are a blight on modern society? This might seem like an odd example, but it’s necessary to make it clear to yourself as much as to your customer the values your company holds itself to and what it can offer to your customers.

Do some personal reflection and truly embrace what your company believes in. Making sure these points strike home will ensure that your customers are in it for the long run.

Online Presence

In the day and age of social media, having an online presence for your brand is very important. While this can look like having a website and online store (if applicable), this also means needing Facebook, Instagram, YouTube, and TikTok accounts. One of the best things you can do for your business is follow trends on social media. It makes you look hip and in-touch, and it will help your business flourish. Get creative!

Marketing

Having an online presence is great, but what about marketing via your website? All legitimate businesses have a website. And, if we’re being honest, the less legitimate ones do, too. Unfortunately, social media profiles are not a replacement for a website. Having a professional page makes your brand seem trustworthy and reliable, and it offers all-around better branding.

If this seems to be way too much stress, don’t worry! Companies like Ecwid help your store grow and succeed. They can help you create a beautiful, easy-to-navigate website while allowing you to market your products on other online platforms mentioned above. Ecwid even allows you to track your digital sales on a dashboard, where you can check on your inventory. They’ll help make sure your Texas small business is the best it can be.