15 May, 2018

Opening a Business in Arkansas

Located in the southeastern region of the United States, Arkansas is a state that was once a cashless society which now has an evolved and diversified economy. There are even six Fortune 500 companies based in Arkansas.

The top industries in the formerly named Bear State are:

·         Agriculture

·         Transportation and logistics

·         Manufacturing

·         Aerospace

If you are thinking of opening a business here, you can check out our short guide created to give you an idea regarding the process.

 

1. Plan your business

The first step you need to take toward turning your business idea into a reality is to create a business plan. Before you can become a proud owner that brings in a steady income there are a few important things that you will need to know:

·         Your competition

·         Your target market

·         The market need

Regardless of your chosen niche, your business plan should be kept short and should include the following:

·         Executive summary – it is an overview of your business that should be one or two pages long

·         Products or Services – in this section there should be a description of the products or services that you will be providing your customers with

·         Business Description

·         Management & Employees

·         Financial Plan

·         Marketing  & Sales Strategy

·         Appendix

 

2. Choose your business structure and incorporate

After properly planning your business it is time to choose the business structure that is the most advantageous for you. There are five types of structures you could choose from when you want to start a business in the state of Arkansas:

·         LLC (Limited Liability Company) – this type of structure is the most common because of the flexibility provided to business owners

·         Partnerships

·         S Corporation

·         C Corporation – represents an independent legal and tax structure separate from its owners. Advantages: No limit to the number of shareholders

·         Sole Proprietorships

Next comes the part where you need to pick a registering agent and then file the articles of organization. To identify as a business entity, you need to obtain

 

3. Name your business

Choosing a name is quite important for the future success of your business. As soon as you decide on the name, you should immediately check that it is distinguishable from the names of other business entities already on file with the Arkansas Secretary of State (SOS).

If you are also planning to build a website for your future business, a great suggestion would be to choose and register a domain name early on.

 

4. Pick a location

Obtaining the right location for your business will definitely be a little difficult. That is exactly why we have decided to share a few tips that have proven to be efficient:

·         Learn as much as possible about the demographics and economic characteristics of the area that you want to occupy.

·         Do thorough research and go see at least 3 places.

·         As it is very important to acknowledge every business in the nearby area you should make time to do so. There can even be some businesses that can complement your company’s products and services.

·         Get information about any competitors located in the same area.

·         It is highly important that you remember that your chosen location should be in line with your company’s future goals and objectives. Getting a place that can be used long-term is ideal.

An excellent location would be considered if:

·         The audience that you target audience lives or works in the nearby area.

·         Your suppliers and distributors are near.

·         Buying or renting in the area is very affordable for you and suit your business’s budget.

Last, but not least, you should think about the advantages of buying and renting. If you have a substantial budget it may be much more beneficial and it could even save you a lot of money to buy a place. However, if you are unsure about the location or have a tight budget for the first year of operations it may be better to rent.

Also, don’t forget to check local zoning regulations even if you work from home.

 

5. Licenses and permits

When it comes to licenses and permits, you’ll need to be covered in the following:

•          Health and safety

•          Specific services or industries

•          The environment

•          Building and construction

If you do some online research you should be able to find all the information needed regarding obtaining licenses in Arkansas.

 

6. Financing your business

This step of forming your business may seem the most difficult for most entrepreneurs out there. But today there are more options than ever before.

Here are some of the most used ways of financing a business:

·         Personal Savings

·         Friends or Family

·         Angel Investors

·         Crowdfunding

·         Bank loan

·         SBA loan

·         Line of Credit

 

7. Create a website

As the world has never been more online than today, having a website for your business is absolutely essential. These are the basic steps of the process of creating a webpage:

·         Get a domain name

·         Get a personalized business email address

·         Choose a business website builder right for you -> this is one of the most important parts, make sure you don’t choose a website builder that is too complex and offers all sorts of features that you don’t need.

·         Choose a website template design right for the type of business you have

·         Populate your website with your content and information

 

8. Insurance

Regardless of the type of business that you will own, getting insurance is always recommended. For more information, you can find plenty of sources online that can reveal more.

 

9. Marketing & branding your business

Creating a brand that is easily remembered is the key. The first step is building the ideal team that can handle graphic design, copywriting and marketing strategies. Forget traditional advertising methods and mainly focus on online marketing.

After knowing your target audience you can apply the right methods and properly develop and grow your company.

 

10. Always learn and improve

Last but not least, you always need to keep an open mind, constantly do research and improve your strategies. This way, you will be able to stand out from the crowd and even leave your competitors behind.