What you need to know before opening a business in illinois

15 Jun, 2018

What You Need to Know Before Opening a Business in Illinois

 

Starting a business can be a unique experience in an individual’s life, but it can also be quite challenging regardless of the person’s previous experience. However, there are states in the US where starting a business presents even more difficulties.

Although Illinois puts out some challenges for its entrepreneurs, it is still among the top U.S. leaders when it comes to states that are growing new businesses. Back in 2013, small businesses employed 2.4 million people, or 46.4% of the private workforce and of course since then these numbers have dramatically increased.

But before we get into more details, let’s take a quick look at the state’s overall economy. The 2016 total gross state product for Illinois was $792 billion, placing it fifth in the nation. The state’s top five industries include: Service Industries, Manufacturing, Exports, Agriculture and Mining.

 

The challenges of starting a business in Illinois

According to a project called “The State of Small Business" established back in 2016, Illinois presents a few obstacles for entrepreneurs who are eager to start a business.

·         Lack of state budget. Many entrepreneurs who were interviewed during this project complained about the fact that the state’s government had no funds. Ken Eisler, senior vice president and product and segment manager of business banking at First Bank, said that the state couldn’t even pay their lottery winners, increasing uncertainty in the business community that ends up looking unstable.

·         High taxes. Another important drawback of doing business in the state of Illinois is the high taxes reported by a lot of entrepreneurs. It is considered to be quite an expensive place to form an enterprise.

·         Slow rising economy. The state recovered quite slow after the economic crisis back in 2008 and since then although many small businesses have emerged, the economy doesn’t have a significant growth on an annual basis. This can definitely be considered a challenge for entrepreneurs who are ready to become business owners, especially when it comes to southern Illinois.

These aspects should not discourage entrepreneurs who have a great business idea along with a solid execution plan. There are a few steps that can be taken to prevent business failure and guarantee faster growth and development. This implies a lot of perseverance and ambition, as well as a disciplined approach when it comes to the process of forming an enterprise.

Now that we’ve got the challenges covered, let’s also learn more about the opportunities that the state of Illinois can offer to its entrepreneurs.

Opportunities for entrepreneurs in Illinois

The biggest city in Illinois, Chicago, that has a population of almost 3 million, is actually an excellent place to start a business. Being diverse and so populated, the city has great demand for goods and services, presenting a lot of opportunities when it comes to attracting customers and forming specific markets for small businesses.

So if you are an entrepreneur ready to start a business in Illinois it’s time to learn more about some valuable resources that are available.

 

Illinois Small Business Development Centers

There are 17 small business development centers in Illinois that help future small business owners with creating their business plans, finding good locations and navigating the state's tax code. To find out more about the center in your area check out the Illinois SBDC Network’s website.

 

The Illinois SCORE

If you are a future business owner that is in need of valuable advice, then SCORE is definitely the right choice for you. There you can find business professionals who volunteer and act as mentors that can teach you different stuff about starting, operating and owning a successful business through mentoring activities. There are several locations in the state of Illinois. Find out more by going to the SCORE website.

 

Illinois Department of Commerce & Economic Opportunity

 Meant to create more jobs and promote the state’s economic growth, the Illinois Department of Commerce & Economic Opportunity can help entrepreneurs with plenty of resources and a lot of information that they might not get elsewhere.

 

Illinois Business Incubators

Business incubators or accelerators typically help startup companies properly grow and develop by providing different services like training or even office spaces. This concept was born in the United States back in 1959 in the state of New York. It then expanded throughout the country during the 1980’s and quickly reached the United Kingdom and Europe. There are plenty of business incubators in Illinois that help entrepreneurs in a variety of ways. The Illinois Incubators’ website watches and reports on the accelerators throughout the state.

 

 

Steps to forming a business in the state of Illinois

Last but not least, we are going to address a few basic but essential steps that any entrepreneur should include in the process of forming a business.

 

1. Choosing a business structure early on

By picking the right business structure for your business from the start you’ll be able to make a clear plan of your trajectory by knowing what the costs will be. These are the structures that you may choose from:

·         LLC

·         Corporation

·         Partnership

·         Sole Proprietorship

·         S Corporation

Each one presents different advantages so make sure you pick wisely.

 

2. Separate personal assets from your business

Start by opening a business bank account. It will be much easier to evaluate your income and you won’t get caught up in different complications that may arise if you only have one account.

 

3. Get some great branding

From choosing the right name to how your website looks like, branding is one of the most essential steps in having your own business. Spread the word to the target market and make your opportunity seem irresistible.

 

4. Create the right team

Having the right people besides you is fundamental. You’ll need to establish a good way in which you can choose your employees and always stick to it.

 

5. Online marketing is the key

Ditching traditional advertising methods and focusing on online marketing can be quite a game-changer in today’s digital world.

 

6. Create a great business plan

Crafting a great business plan is absolutely essential when it comes to the process of forming a business. You can get an expert’s advice or do tons of research. Focusing on establishing the plan even before you think of the name of your business, should make the process much easier.

 

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