Ready to bring your business idea to life? Here are the first steps to take in Kansas City
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Is it your goal this year to finally start the business you’ve been talking about forever? Well, you’re not alone. A record number of people are quitting their jobs and looking to start their own businesses, according to a 2021 survey.
We talked to Brandon Calloway, CEO and Co-Founder of Generating Income for Tomorrow (G.I.F.T.) a local nonprofit that invests in small Black-owned businesses in Kansas City, and Mary Buche, Bank of Labor senior vice president and lending relationship manager, to get their tips on what steps to take to get your business off the ground.
Buche’s biggest tip was to remember that you don’t have to take this entrepreneurial leap of faith alone, so we found some organizations around Kansas City that can help you launch your business too.
“I think a lot of people may not know all the steps that you need to take to start a business and so I would recommend them either calling a banker…and other resources that are free to use that they can utilize to get them those resources they need,” Buche said.
First things first: Put a plan on paper
A good first step is a business plan, which is a document that outlines the goals and expectations you have for your business.
In this plan, you can also establish how you will make this idea come to life. Things to include may be the size of your business, expected revenue and profit and how you will market yourself.
How will you sell other people on your idea?
Calloway said pitch decks are another great tool for planning out your goals. Pitch decks are similar to a slideshow that aims to pitch your business idea to investors or other stakeholders you might be interested in working with to get them to believe in your vision.
“It will help you answer some questions that you may or may not have thought of but that you really need to know to help you come up with a solid, cohesive, go-to-market strategy,” Calloway said.
What kind of business is it?
Now that your ideas are laid out, you have to find a business structure that makes the most sense for you.
Different legal structures such as owning and operating it all yourself or making your business a limited liability corporation can have different pros and cons to consider. You can find more information on business structures at kcsourcelink.com.
Make it official
Once you have your business plan and structure in order, filing all the necessary paperwork is crucial.
All new businesses should be registered with the Kansas secretary of state or the Missouri secretary of state. People can register their businesses by visiting their respective secretary of state website. Each state has resources available to new business owners to help with the registration process, including a name search to make sure your business name is available for registration.
Once registered, businesses should also apply for an employer identification number. This number is also known as a federal tax identification number. It will be used to identify your business as it continues to grow and generate revenue.
Befriend a bank
Buche said that small business owners should be in regular communication with a banking expert, especially in the beginning stages.
Banks can obviously serve as a financial resource, but Buche assured that most banks can offer help with improving cash flow, planning for growth and other tools for managing finances.
Developing this kind of relationship can be useful when it is time to consider business loans.
“When you get to that stage where maybe you have some lending needs, like you’re going to purchase real estate, establish that bank relationship before so you can really prepare for business financing,” Buche said.
Who can help in Kansas City?
Buche said that community banks like Bank of Labor enjoy working with small businesses, but she understands that some people may be hesitant to go to a bank when they are starting out.
In that case, there are a number of local organizations committed to helping small businesses get off the ground right here in Kansas City.
Kansas City G.I.F.T., which stands for Generating Income for Tomorrow, has already invested over half a million dollars in grants to Kansas City’s small Black-owned businesses. G.I.F.T. grant recipients also receive business coaches and marketing and legal services.
Although G.I.F.T.‘s goal is to uplift Black-owned businesses on the East Side of Kansas City, there are a number of local organizations and initiatives that may be better suited for your needs.
info@theporterhousekc.com
816-265-1522
Porter House is a business launch pad that serves people interested in starting a business or new product or small businesses that are newer than two years old.
info@pbakc.org
(816) 666-9722
Prospect Business Association aims to help entrepreneurs and Black-owned businesses through a Business Development Training Program.
info@kcsourcelink.com
816-235-6500
KC Source Link is an extensive online resource for small businesses and entrepreneurs in Kansas City.
kcbizcare@kcmo.org
816-513-2491
KC Bizcare is an economic program and online guide published by the city of Kansas City. The site includes resources for understanding taxes, registering a business and permits.
Black Chamber of Commerce of Greater Kansas City
info@bcckc.org
816-336-1435
The Black Chamber of Commerce of Greater Kansas City is a nonprofit organization which offers opportunities and resources to Black-owned businesses.
Asian American Chamber of Commerce, Kansas City
913-338-0774
The Asian American Chamber of Commerce offers similar support, resources and networking opportunities to small businesses owned by Asian Americans in Kansas City.
Hispanic Chamber of Commerce of Greater Kansas City
816-472-6767
Hispanic Chamber of Commerce of Greater Kansas City works to create and promote opportunities for economic development within the Hispanic business community.
Most of all, take the leap
“You gotta take risks,” Calloway said. “A lot of people sit down and think about stuff over and over and over again. But taking action is the really best thing, the best way to get started.”
This story was originally published February 2, 2022 at 5:00 AM.
