The first step of starting a business is, not surprisingly, the idea.

If you are still searching for that spark of inspiration, here are a few tips that may help.

Assess your interests and passions: Consider the activities, industries, or hobbies that genuinely excite and motivate you. Starting a business around something you are passionate about increases the likelihood of long-term success and personal satisfaction.

Evaluate your skills and strengths: Reflect on your talents, skills, and experiences that can be applied to a business. Think about how your background can be leveraged to create a unique value proposition in the market.

Conduct market research: Research your market, its demographics, and the needs of the community. Look for gaps in the market or areas where demand outpaces supply, offering potential opportunities for new businesses.

Consider the competition: Analyze the competitive landscape in your preferred industry or area. Determine if there is room for a new player and how you can differentiate your business from existing competitors.

Network with local entrepreneurs: Connect with other business owners in Delaware, attend local networking events, and join business organizations to gather insights, ideas, and advice from individuals who have already navigated the process of starting a business.

Test your idea: Before fully committing to a business idea, consider testing it on a small scale or creating a minimum viable product (MVP) to gauge market interest and validate your concept.

Check out our library of business ideas to get detailed industry information, trends, costs to start, tips, and lots more.

Once a solid business idea is in place, it’s time to start working on the business plan.

Writing a business plan forces you to think critically about every aspect of your business, from marketing and sales to operations and finances. A business plan also allows you to evaluate the feasibility of your business idea by analyzing market demand, competition, and financial projections. This assessment can help you determine whether your idea has the potential to be profitable and sustainable.

While writing your first business plan may be intimidating, we have resources to help you get started!

As a new entrepreneur, researching the different types of business entities and deciding which one is best for you in Delaware can be a daunting task. There are four primary business entities in the state, which include the sole proprietorship, partnership, corporation, and Limited Liability Company (LLC). A brief description of each is below.

A Sole Proprietorship in Delaware is a type of business entity with a single owner and is the least complicated form of business to start up. The main consideration is that if the business is going to be operated under a business name, you will need to register a trade name with the Prothonotary’s Office in all of the counties where you plan to transact business.

Related: How to start a sole proprietorship in Delaware

A General Partnership is a business entity formed by two or more individuals or entities who agree to share ownership, profits, and losses. Each partner contributes to the business by providing capital, property, labor, or skills. The partners share in the management and decision-making process, and each partner has the authority to bind the partnership in contracts and other legal obligations.

Related: What is a partnership?

A Corporation is a business structure that is a separate entity from the individual. While corporations are more expensive and difficult to form than sole proprietorships and partnerships, the major advantage is that the corporation provides personal asset protection for the owners should the corporation be sued. The downside is the business formation requirements and administrative burdens of having a board of directors, annual meetings for directors and shareholders, taking minutes at the meetings, issuing stock certificates, and more.

Related: How to form a Delaware Corporation 

The Limited Liability Company (LLC) is a popular business entity choice because it provides the liability protection of a corporation with the sole proprietorship’s ease of operation.

People choose to make an LLC because it helps protect the owners, called “members,” from losing their personal assets (like their homes, vehicles, etc.) if the business can’t pay its bills or gets sued.

Related: How to form a Delaware LLC

Certain licenses and permits will be needed to operate a business in Delaware, and the ones needed will vary on the business’s activities and location. Some common registrations include:

State of Delaware Business License: All Delaware businesses must obtain a business license from the Delaware Division of Revenue. Additionally, many Cities may also require a business license in order to operate.

Employer Identification Number: The Employer Identification Number or EIN (sometimes referred to as the Federal Employer Identification Number or FEIN) is a nine-digit tax identification number issued by the Internal Revenue Service (IRS). This number identifies a business operating in the U.S and is used for paying payroll taxes, filing tax returns, and more. Much like what a social security number is to a person, the EIN is similar to a social security number for a business. While most businesses will need to get an EIN, some do not.

Professional Licensing – Some services, such as accountants, cosmetologists, gun dealers, and appraisers, require licensing in Delaware. While this isn’t a license on the business, licensing is required in order to operate.

Related: What business licenses and permits are needed in Delaware?

Keeping your business and personal finances in separate business bank and credit card accounts makes it easier to track the business’s income and expenses. Every bank is different, but in general, they will request:

Sole proprietorship & partnership – Trade Name Certificate, EIN or SSN and owner(s) drivers license
Corporation – Certificate of Formation, bylaws, Certificate of Good Standing, EIN, and owner(s) drivers license
LLC – Certificate of Formation, Operating Agreement, Certificate of Good Standing, EIN and owner(s) drivers license

A great idea and plan are sometimes not enough, as getting the funds to start a small business is a challenging process for many.

There are several different sources of funding for small business, which include conventional banks, Small Business Administration (SBA) loan guarantees, investors, grants, and many others.

Related: Understanding the different types of business funding.

Hiring employees is a complex and often overwhelming process for a new business owner, as there are multiple agencies to register with and labor laws to understand.

Employers are responsible for reporting each new hire, verifying employees are eligible to work in the U.S., income tax withholding, unemployment insurance, and payroll withholding taxes, including Social Security and Medicare.

Related: Steps to hiring your first employee in Delaware

Business owners in Delaware need insurance to protect their business from potential risks and liabilities. Insurance can help cover the costs of accidents, property damage, legal fees, and other expenses that may arise. It is important for business owners to understand the minimum requirements for insurance in Delaware, as well as any additional coverage they may need to ensure their business is properly protected.

Most types of business insurance are optional, except for workers’ compensation insurance which is required for any business in Delaware with employees. This type of insurance helps cover medical costs and lost wages if an employee is injured while on the job.

Even if insurance isn’t required, and there is a fire, theft, or personal injury lawsuit, the business owner may have to pay out-of-pocket for damages and legal fees. Home-based businesses and side-businesses may want to consider business insurance, too, as personal home and vehicle policies may not cover a business loss.

Related: Types of insurance your business may need

Taking care of bookkeeping is important for businesses in Delaware not only in the event of a state or IRS tax audit, but maintaining accurate financial records helps businesses monitor their financial health, manage cash flow, and make informed decisions. Understanding the business’s financial position enables owners to identify areas for improvement, control expenses, and plan for growth.

Related: Setting up accounting for a business