How to Start a Small Business: Your Top 10 Questions Answered

The number one thing we hear from new business owners? “I didn’t know where to start.” If that sounds familiar, you’re in the right place. Here are the 10 questions new business owners ask most.

GETTING STARTED

Q1: What type of business should I start?

Start with what you know. The best businesses are built on skills you already have, problems you’ve personally experienced, or industries where you have a track record. Passion matters — but experience is what gets you through the hard first year. If you’re not sure where to start, talk to a free SBDC advisor. That’s exactly what we’re here for. Watch: Unleash Business Intelligence on Your Competition

Q2: What business structure should I choose?

Your three most common options are sole proprietorship, LLC, and S-corporation. A sole proprietorship is the simplest to set up but offers no personal liability protection. An LLC gives you that protection with less complexity than a corporation. An S-corp can offer tax advantages once your business is generating consistent income. The right choice depends on your situation — consult a business advisor or attorney before deciding. SBA: Choose a Business Structure

Q3: How do I register my business and get the right licenses?

Start with your California Secretary of State filing if you’re forming an LLC or corporation. Then check city and county requirements for a business license. Some industries — food service, childcare, contractors — require additional permits. The California Department of Tax and Fee Administration (CDTFA) is your resource for sales tax permits and tax obligations. Don’t skip this step — operating without proper licensing can shut you down fast.

MONEY

Q4: How much money do I need to start?

Enough to cover at least 6 to 9 months of expenses with zero income coming in. New business owners almost always underestimate how long it takes to generate consistent revenue — and overestimate how quickly customers will show up. Build a realistic budget, add a cushion, then add a little more. SBA: Calculate Your Startup Costs

Q5: How do I fund my business?

Your options include personal savings, family and friends, SBA loans, microloans, grants, and alternative lenders. The right fit depends on how much you need, how fast you need it, and your credit profile. SBDC advisors help clients prepare loan applications and connect with lenders every day — at no cost to you. Visit SBA.gov to explore federal funding programs. Watch: Alternative Funding Options for Small Businesses

Q6: What are the biggest financial mistakes new owners make?

Not having enough startup capital. Not separating personal and business finances. Underpricing products or services. Ignoring cash flow until it’s a crisis. And not keeping clean books from day one. None of these are fatal — but they’re all avoidable with a little planning upfront. Watch: Top 5 Business Loan Mistakes to Avoid

GROWING YOUR BUSINESS

Q7: How do I write a business plan?

A business plan doesn’t have to be 40 pages. Start with the basics: what you’re selling, who your customers are, how you’ll reach them, what it costs to operate, and how you’ll make money. A lean, clear plan is more useful than a lengthy one nobody reads. SBDC advisors can help you build one — and lenders will often require it before approving a loan. Watch: How to Use AI to Write a Business Plan

Q8: How do I find my first customers?

Tell everyone you know. Use your Google Business Profile so local customers can find you in search. Show up on social media where your customers already spend time. Ask your first customers for reviews and referrals. In the early days, word of mouth and local visibility are your most powerful tools — and both are free.

Q9: How do I hire my first employee?

Before you post a job, understand your obligations: payroll taxes, workers’ compensation insurance, California labor law compliance, and proper classification of employees vs. contractors. The Employment Development Department (EDD) is your California resource for employer requirements. Hiring the wrong person — or hiring before you’re ready — is one of the most common and costly early mistakes.

GETTING HELP

Q10: How can a free SBDC advisor help me?

Not sure where to start? You’re not alone. Working with the CSUB Bakersfield Small Business Development Center gives small business owners the opportunity to tap into the extensive experience and knowledge of our business advisors — at no cost to you. It also provides exclusive access to planning and decision-making tools to help you make better decisions, identify new opportunities, and stay ahead of your competition.

We offer consulting and in-depth training in business planning, accessing capital, cash flow forecasting, start-up assistance, marketing, artificial intelligence, and more. Sign up for no-cost consulting today and meet with one of our experienced business advisors.

Not sure where to start? We can help.

Working with the CSUB Bakersfield SBDC gives you access to experienced business advisors at no cost — plus tools to help you make better decisions, identify new opportunities, and stay ahead of your competition.