Running a business in Massachusetts or anywhere can be an exciting and rewarding experience… when done mindfully. Of course, while anyone can start a business, not everyone can be successful and stay fulfilled from day to day.

Here’s what #MTMNmentors recommend for staying excited and continuing to reap business rewards for the life of a brand. 

#1. A “S.M.A.R.T.” Brand Purpose or Mission

Great ideas come and go. Successful ideas only come to fruition with time.

How much time?

That’s different for everyone but whichever route you choose, it’s important to pace yourself.

Loans and investors can take months (sometimes years if you have to build or clean up your credit) and, according to research from Zippia, it takes 3 to 4 years for the average start-up business to turn a profit. Not to say this profit is enough to pay themselves or anyone else a living wage but it is enough to cover basic business expenses.

This means, odds are, you’re going to want a way to support yourself for 3-4 years at a minimum when starting any business. This may mean working other jobs, taking out loans, and finding investors, or it may mean finding a co-founder to help split time and costs.

Either way, if you plan to work while starting your business, consider doubling your planned timeline to avoid burnout. I recommend clients begin with their calendars. It’s the most basic time management foundation we all seem able to manage better for free. The goal is to avoid burning out ourselves and our teams, of course, but we also don’t want to burn out our budgets.

As early as 2005, a Gallop poll showed 57% of small-business owners say they work six or more days each week. The same poll showed that 62% of small business owners work 50 hours or more each week but the average time put in is actually 52 hours. Imagine reclaiming just 10 hours of that time for each member of your team simply by waiting to choose the right resources to invest in.

Now imagine saving 20 hours, 40 hours, and more. Saving time by testing to budget for resources wisely can add up to more profits than taking on an additional client, cutting employee hours, or making other product quality cuts.

Taking your time will help you form a more comprehensive plan. Of course, all the time in the world can’t prepare you for everything but limiting surprises will improve your chances for success. We use S.M.A.R.T. goals for this at MTM Executives which turn goals into measurable, actionable visions that are easy to draw tactical inspiration from.

Begin by blocking time on your calendar to develop a savings plan. Save both time and money by planning ahead with your calendar, budges, and sales campaigns. Know what’s legally required by your country and local governments, the costs of running your business, and how to sustain your sales process. If you haven’t started blocking and batching time on your cloud-based calendar, learn how on the #BeautifullyStrategic Independent Executive blog.

Learning to set S.M.A.R.T. goals may take some time. When adding how to manage a calendar, it’s a lot for anyone. Avoid trying to learn it all alone. Find trusted and experienced advice from professionals who know you and your audience. In the little time we’ve spent here, we’ve already covered planning a financial strategy and day-to-day business operations. It may not seem like a lot but add the time needed for each team member, client, and vendor to learn the processes involved and it adds up.

#2. Data and Documentation To Turn The Vision Into A Business

The next step to opening a business in Massachusetts (and across the US) is technically to choose a business structure but Step #2 is where things get specific to each startup. It’s quite common to start a business without knowing the “best” structure. Consider, for example, many of us started our brand before it was a business or started the business before knowing what a S.M.A.R.T. goal was.

We each have to use our current resources while doing our best to stay on top of additional resources that may help. What’s “best” for tax savings, may not be best for bringing in the cash you need now. Spending money on an experienced team, may not be needed when you have friends and family with the time to help now… assuming you work well together, of course. The most creative part of any business is learning how to use what you have to meet your audiences ‘ needs.

So do you document your ideas and processes first or start collecting dataThe term Data as defined in business. More? As always, that will depend on where you are beginning. Startups typically begin by documenting out of necessity. Everything starts as an idea. We write it down, edit it, research it. Then, if we’re lucky and diligent, we test it, execute it, review the results and do it better the next time. So, before jumping into the next section on business structure, remember its okay to start small and work your way up.

My business, MTM Executives, started as a sole proprietorshipA business owned and managed by one person who has no separate legal distinction or employer identification number. They may have employees or a brand name but they use their own individual tax identification. More in Queens in 2007 despite the research starting earlier. As I write this in 2023, we’re an S-corporation that’s branched off into many brands including the network you’re reading this post on. That business also led to the nonprofit that hosts this network, my co-director’s (and husband’s) business, and countless others who have benefited from our network.

While my research was invaluable to my team in growing our business, it was the documentation that allowed for that team to be trained. The documentation guided them, our artificial intelligence, and other tools when I was unavailable. Plus, documenting my ideas and reviewing that documentation kept me focused when other responsibilities pulled me away. So I say documentation but let me know your thoughts in the comments on on social media @RogeraMTM.

#3. An Appropriate Business Model and Structure

While it’s hard to admit, a business structure seems to be more important than a business model these days but only because we rarely discuss models. Business structures are legally required to form a business in most, if not all states, unlike business models. However, in my humble opinion, no one is filing to start a business without a model. So what’s the difference?

A business model is simply a business plan. It’s not necessarily enough to be successful without a brand and sales strategy but it’s certainly enough to try. I’d love to know the statistics on how many people had a complete strategy before beginning but in my 40 years of experience, it’s negligible. From Boomers to Gen Z, most of us start without a clue what our strategy or structure will be. We begin with a purpose or mission that drives us. That is your model.

So what’s a business structure? The three most common types of business structures are sole proprietorshipA business owned and managed by one person who has no separate legal distinction or employer identification number. They may have employees or a brand name but they use their own individual tax identification. More, LLC, and corporation. There’s one more I’ll mention below but, odds are, you haven’t heard much about it elsewhere as of the date of this post. Each type of business structure has its own benefits and drawbacks so it is important to select the right structure for your business.

Sole Proprietorship

This is the simplest form of business ownership where the business is owned and run by a single person. This is typically a good option for small businesses with limited liability risks because the owner has unlimited personal liability for the business’s debts and obligations.

Limited Liability Company (LLC)

An LLC is a hybrid business structure that combines the limited liability protection of a corporation with the flexibility and tax advantages of a partnership. An LLC is a good option for small businesses with multiple owners who want to protect their personal assets.

Corporation

A corporation is a legal entity that is separate from its owners. Corporations offer limited liability protection to their shareholders, but they are also subject to more regulation and taxation than other business structures.

Once you have decided on a business structure, you need to choose a name for your business. Depending on your business structure and name choice, you may need to register your business. Even if you do not, the name should be unique and not already in use so you can be found easily. You can check the availability of your desired name on the Secretary of the Commonwealth of Massachusetts website. 

A sole proprietorshipA business owned and managed by one person who has no separate legal distinction or employer identification number. They may have employees or a brand name but they use their own individual tax identification. More does not require formal registration with the state. However, if you use a business name that is different from your own name, you will need to register it as a trade name with the Secretary of the Commonwealth of Massachusetts.

Depending on your business structure, LLCs and Corporations are required to register in Massachusetts and need to file with the Secretary of the Commonwealth of Massachusetts. You will also need to file an annual report and pay a fee.

To form an LLC in Massachusetts, you also need to file a Certificate of Organization with the Secretary of the Commonwealth of Massachusetts.

To form a corporation in Massachusetts, you also need to file Articles of Organization with the Secretary of the Commonwealth of Massachusetts. You will also need to file an annual report and pay a fee.

Once you’ve registered your business, you may need to obtain additional permits and licenses from the state or local government. Again it depends on your business structure but the Massachusetts Business Portal has a list of licenses and permits required for different industries.

Finally, all businesses in Massachusetts must register for state taxes with the Department of Revenue. The registration process is done through MassTaxConnect, an online tax portal.

We’ve already shared a post on How To Begin Saving to Start Your Business and a course on How to Start Budgeting with Airtable, so let’s start with your banking options. Typically, you can and should start your business with a free checking and savings account. You can go the traditional brick-and-mortar route or choose an online account like Paypal or Quickbooks. Online accounts will typically mail you a debit card that is free to use at ATMs but most ATMs will still charge you a fee on their end. These services may also charge you a percentage of each transaction, so make sure you choose the option that works best for your income streams. 

Other things to consider include additional perks and services such as loan rates, customer service hours, and FDIC limits. The FDIC insures up to $250K per bank in most but not all cases so just are sure all of your deposits are covered.

The most important thing to remember here is to keep it simple. Know your limits by researching your local laws on zoning, taxes, etc. Then start budgeting for costs. Typically you need a business license, sales platform, and tax ID but this varies widely by industry and location. Finally, start by launching just a few products or a single service. You may want a few different options or offerings but that’s it. You don’t want to have to prep 100 items before launching or have to correct 50 items when you decide to pivot. Master a single product on a single platform or two and then grow from there. 

Once you know how many items you have to list, start a rough timeline. I typically recommend a project manager like Jira or Asana for this but a simple calendar may do in a pinch.

#4. Develop Resolve

With the amount of time and resources needed, it may have dawned on you that patience is essential. More than that, however, resolve will get you through your toughest challenges. Successes in any field know how to fail, make mistakes, and hear “no” without slowing down. Yes, we want to be open to feedback and listen to constructive criticism and we want to know when to pivot but don’t want setbacks to slow us down or knock us off course. 

Resolve will keep you going through the challenges, doubts, and fears but it takes time to develop. Here are three of the most efficient ways to begin building your resolve before building your business:

• Start a savings plan for your business
• Begin building credit for your business
• Test selling an affiliate product

Are you growing or starting a business?

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About The MTM Network by The MTM Institute

We grow local economies by bringing business owners together for strategic collaboration. All are welcome to come, connect and collaborate locally and online. To remain accessible, we are a free business network hosted by The MTM Institute, a 501(c)3 nonprofit organization registered with the Internal Revenue Service.

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