The Commonwealth of Massachusetts has a great deal to offer entrepreneurs interested in launching a business.
According to the U.S. News, Massachusetts ranks #1 in the nation for the business environment, #5 for states with the strongest economies, and in the top 10 for the overall ranking. Consistent economic growth and a skilled and diverse labor pool are reasons why the state enjoys more than 700,000 small businesses that employ more than 1.5 million people, according to the U.S. Small Business Administration (SBA).
Given the business-friendly landscape and growth potential for exciting ventures, people with new ideas and innovations have an opportunity to succeed. Unfortunately, thought leaders with new products and services are sometimes discouraged by the bureaucracies and complexities involved when opening a startup. But with a basic understanding of the steps involved, the right business banking account and loan options, and some determination, you could be working for yourself.
Curious About How to Start a Business?
It’s essential to understand that planning and timing are two sides of the same business coin. The planning side requires prospective owners to conduct thorough research regarding market share, customer demographics, and consumer needs. According to the SBA, these are Massachusetts’s most prevalent small business types.
- Professional, Scientific, and Technical Services: 121,612 small businesses.
- Other Services (except Public Administration): 79,555 small businesses.
- Construction: 75,141 small businesses.
- Real Estate and Rental and Leasing: 65,405 small businesses.
- Transportation and Warehousing: 57,565 small businesses.
- Retail Trade: 55,438 small businesses.
- Health Care and Social Assistance: 53,876 small businesses.
- Administrative, Support, and Waste Management: 43,911 small businesses.
- Arts, Entertainment, and Recreation: 41,102 small businesses.
Based on your market analysis, these figures could indicate such firms thrive or that the region is oversaturated. Deciding to launch one of these or another niche company then tasks you with identifying a launch date.
A launch date remains a critical element and may determine long-term success. Consider the following business anecdote.
A live music venue may open its doors 3-6 months ahead of the prime concert series, knowing talent availability and customer traffic will initially be slow. The primary reason for launching at this juncture stems from the industry’s talent booking cycle. Business leaders understand the doors need to be open to broker contracts with quality entertainment. That also means the organization must possess the resources to break even or operate at a loss until standing-room-only shows kick off. The same reasoning applies to roofing contractors, restaurateurs, and a wide range of other industries that have seasonal peaks.
The Commonwealth also offers significant resources for people organizing a new venture. The Massachusetts Small Business Development Center Network provides confidential, one-on-one business counseling, as well as free or low-cost training programs. Mentorship can be started through SCORE, and the Massachusetts Permit Regulatory Office is available to negotiate a sometimes complicated bureaucracy. These and other support resources can be tapped while making business preparations.
Explore how to start, expand, or manage your business in Massachusetts by downloading our free guide:
Here’s How to Start a Business in Massachusetts
After conducting market research, it’s crucial to set aside your emotional inclinations and make objective decisions about the venture. The hard data may point to changes to products, services, regions, or the launch date. But once you are reasonably sure enough revenue can be generated to turn a profit, it’s time to bring the company to fruition. Consider the following steps regarding how to start a business.
1: Create Your Own Business Plan
A comprehensive business plan speaks to the broad strokes of the operation, its goals, products, services, and ways to make these elements profitable. Start by crafting an executive summary, sometimes called a “mission statement,” that lays out the general idea of the endeavor.
Take time to describe the organization. Clearly articulate the startup’s goals and details about products and services, as well as develop a sales plan. Although projections can be somewhat speculative, they should include conservative estimates of monthly and annual revenue.
2: Understand Business Financing Options
As in the case of the entrepreneur opening a live music venue, startups typically do not generate a profit during the first year. To buoy the business and retain talented employees, it’s crucial to have business banking solutions and business loan resources in place.
Start by opening a business checking account as soon as the organization receives an Employer Identification Number from the IRS. Opening a business checking account allows professionals to separate company money from personal holdings.
Newly minted business owners too often find themselves wearing too many hats. That’s why it’s generally a good idea to work check with your reliable community bank to see what merchant services they offer to help alleviate some of the business tasks.
3: Discover Massachusetts Services and Grants Available For Business Owners
The Commonwealth has traditionally backed small business growth by providing support through grants and services. For example, the Regional Economic Development Organization and State Trade Expansion Program provide material support. It’s also prudent to contact your local Chamber of Commerce and inquire about local programs and networking opportunities.
4: Establish Your Business in Massachusetts
Registering a business in Massachusetts involves several steps. You will need a federal Employer Identification Number to register the entity with the Secretary of State’s office, and a Certificate of Good Standing may be required to incorporate a business. These are other steps involved in establishing a business in the Commonwealth.
- Check Business Name Availability
- File a Certificate of Organization with the Secretary of State’s Office
- File for a DBA Certificate
- Apply for Licenses and Permits
- Obtain Business Insurance
It’s also essential to open a business checking account to carry out transactions and maintain accurate accounting practices. Failing to deposit revenue and pay expenses from a business account can result in disqualified deductions and may prompt an IRS audit.
5: Hire & Manage Employees
Checking the Commonwealth’s hiring requirements is a good jumping-off point. Although hiring employees can be a simple process, some extra steps may need to be taken. As an example, Massachusetts has a New Hire Reporting Program that collects employee information for staff members and independent contractors who have orders to pay child support. This program outlines how you as an employer must report all newly hired employees who work in Massachusetts, among other claims involving retirees, those who file worker’s compensation claims, and people returning after 30-day absences or longer. Make sure you are up to date on all your requirements so you can be prepared to hire the staff needed to start your business.
6: Get Advice and Assistance
It’s nearly impossible to know how to start a business the first time, and that’s why the assistance and advice of experienced professionals prove invaluable. There are wide-reaching resources such as the Massachusetts Alliance for Economic Development. Also known as MassEcon, the organization helps with site finding, research, programming, and education.
Similarly, the Massachusetts Association of Community Development Corporations offers technical assistance and training. The group also helps small businesses gain access to capital. The Commonwealth publishes a list of organizations that provide advice and assistance to help startups succeed.
Middlesex Federal Can Help Your Business Succeed
If you are starting a company in Massachusetts, it’s crucial to work with a reliable community bank that offers flexible business checking accounts, business savings accounts, business lines of credit, merchant services, and business loan opportunities. Middlesex Federal is ready to help your business succeed.
If you have questions about establishing a business deposit account and related services, as well as business financing or expansion, please contact us, and a member of our Business Banking Team will be glad to assist you.
Curious About How to Start a Business?
It’s essential to understand that planning and timing are two sides of the same business coin. The planning side requires prospective owners to conduct thorough research regarding market share, customer demographics, and consumer needs. According to the SBA, these are Massachusetts’s most prevalent small business types.
- Professional, Scientific, and Technical Services: 121,612 small businesses.
- Other Services (except Public Administration): 79,555 small businesses.
- Construction: 75,141 small businesses.
- Real Estate and Rental and Leasing: 65,405 small businesses.
- Transportation and Warehousing: 57,565 small businesses.
- Retail Trade: 55,438 small businesses.
- Health Care and Social Assistance: 53,876 small businesses.
- Administrative, Support, and Waste Management: 43,911 small businesses.
- Arts, Entertainment, and Recreation: 41,102 small businesses.
Based on your market analysis, these figures could indicate such firms thrive or that the region is oversaturated. Deciding to launch one of these or another niche company then tasks you with identifying a launch date.
A launch date remains a critical element and may determine long-term success. Consider the following business anecdote.
A live music venue may open its doors 3-6 months ahead of the prime concert series, knowing talent availability and customer traffic will initially be slow. The primary reason for launching at this juncture stems from the industry’s talent booking cycle. Business leaders understand the doors need to be open to broker contracts with quality entertainment. That also means the organization must possess the resources to break even or operate at a loss until standing-room-only shows kick off. The same reasoning applies to roofing contractors, restaurateurs, and a wide range of other industries that have seasonal peaks.
The Commonwealth also offers significant resources for people organizing a new venture. The Massachusetts Small Business Development Center Network provides confidential, one-on-one business counseling, as well as free or low-cost training programs. Mentorship can be started through SCORE, and the Massachusetts Permit Regulatory Office is available to negotiate a sometimes complicated bureaucracy. These and other support resources can be tapped while making business preparations.
Explore how to start, expand, or manage your business in Massachusetts by downloading our free guide:
Here’s How to Start a Business in Massachusetts
After conducting market research, it’s crucial to set aside your emotional inclinations and make objective decisions about the venture. The hard data may point to changes to products, services, regions, or the launch date. But once you are reasonably sure enough revenue can be generated to turn a profit, it’s time to bring the company to fruition. Consider the following steps regarding how to start a business.
1: Create Your Own Business Plan
A comprehensive business plan speaks to the broad strokes of the operation, its goals, products, services, and ways to make these elements profitable. Start by crafting an executive summary, sometimes called a “mission statement,” that lays out the general idea of the endeavor.
Take time to describe the organization. Clearly articulate the startup’s goals and details about products and services, as well as develop a sales plan. Although projections can be somewhat speculative, they should include conservative estimates of monthly and annual revenue.
2: Understand Business Financing Options
As in the case of the entrepreneur opening a live music venue, startups typically do not generate a profit during the first year. To buoy the business and retain talented employees, it’s crucial to have business banking solutions and business loan resources in place.
Start by opening a business checking account as soon as the organization receives an Employer Identification Number from the IRS. Opening a business checking account allows professionals to separate company money from personal holdings.
Newly minted business owners too often find themselves wearing too many hats. That’s why it’s generally a good idea to work check with your reliable community bank to see what merchant services they offer to help alleviate some of the business tasks.
3: Discover Massachusetts Services and Grants Available For Business Owners
The Commonwealth has traditionally backed small business growth by providing support through grants and services. For example, the Regional Economic Development Organization and State Trade Expansion Program provide material support. It’s also prudent to contact your local Chamber of Commerce and inquire about local programs and networking opportunities.
4: Establish Your Business in Massachusetts
Registering a business in Massachusetts involves several steps. You will need a federal Employer Identification Number to register the entity with the Secretary of State’s office, and a Certificate of Good Standing may be required to incorporate a business. These are other steps involved in establishing a business in the Commonwealth.
- Check Business Name Availability
- File a Certificate of Organization with the Secretary of State’s Office
- File for a DBA Certificate
- Apply for Licenses and Permits
- Obtain Business Insurance
It’s also essential to open a business checking account to carry out transactions and maintain accurate accounting practices. Failing to deposit revenue and pay expenses from a business account can result in disqualified deductions and may prompt an IRS audit.
5: Hire & Manage Employees
Checking the Commonwealth’s hiring requirements is a good jumping-off point. Although hiring employees can be a simple process, some extra steps may need to be taken. As an example, Massachusetts has a New Hire Reporting Program that collects employee information for staff members and independent contractors who have orders to pay child support. This program outlines how you as an employer must report all newly hired employees who work in Massachusetts, among other claims involving retirees, those who file worker’s compensation claims, and people returning after 30-day absences or longer. Make sure you are up to date on all your requirements so you can be prepared to hire the staff needed to start your business.
6: Get Advice and Assistance
It’s nearly impossible to know how to start a business the first time, and that’s why the assistance and advice of experienced professionals prove invaluable. There are wide-reaching resources such as the Massachusetts Alliance for Economic Development. Also known as MassEcon, the organization helps with site finding, research, programming, and education.
Similarly, the Massachusetts Association of Community Development Corporations offers technical assistance and training. The group also helps small businesses gain access to capital. The Commonwealth publishes a list of organizations that provide advice and assistance to help startups succeed.
Middlesex Federal Can Help Your Business Succeed
If you are starting a company in Massachusetts, it’s crucial to work with a reliable community bank that offers flexible business checking accounts, business savings accounts, business lines of credit, merchant services, and business loan opportunities. Middlesex Federal is ready to help your business succeed.
If you have questions about establishing a business deposit account and related services, as well as business financing or expansion, please contact us, and a member of our Business Banking Team will be glad to assist you.