Do you want to invest or start a small business in Kansas? If YES, here is a detailed guide on how to start a profitable business in Kansas with no money.
It is normal to find small business owners in operating in diverse niche areas in the agriculture industry in Kansas. As a matter of fact, nearly 90 percent of Kansas’ land is devoted to agriculture. The state’s agricultural outputs are cattle, sheep, wheat, sorghum, soybeans, cotton, hogs, corn, and salt.
As of 2018, there were 59,600 farms in Kansas, 86 (0.14 percent) of which are certified organic farms. The average farm in the state is about 770 acres (more than a square mile), and in 2016, the average cost of running the farm was $300,000.
Kansas ranks 13th when it comes to ease of doing business and 16th in quality of life in the united states of America. The Bureau of Economic Analysis estimates that Kansas’s total gross domestic product in 2014 was US$140,964 billion. This indeed is one of the reasons why an investor should consider investing in Kansas.
Please note that a small business is an independently owned and operated company that is limited in size and in revenue depending on the industry.
A local coffee café that employs 10 people is an example of a small business. So also, a standard furniture manufacturing company that employs less than 500 people is an example of a small business. To Start a Business in Kansas, follow these steps:
13 Steps to Starting a Business in Kansas With No Money
Step 1: Choose a Workable Business Idea or Niche
There are various workable business ideas that an entrepreneur who is looking towards starting a business in Kansas can choose from.
Aside from the Agriculture industry which happens to be the booming industry in Kansas, there are several other industries that an aspiring entrepreneur who is looking towards starting a business in the state can choose from.
There are loads of business opportunities in the services industry, the transportation industry, health and medical industry, telecommunication industry, real estate industry and a host of industries.
The bottom line is that the first step of starting a business starts with choosing a workable business idea that can thrive in the location you intend starting the business and a business idea that you are passionate about.
Step 2: Conduct Your feasibility studies and Market Survey
Once you have settled with a workable business plan, the next thing you need to do is to conduct feasibility studies and market survey. In other words, once you have settled for a business idea, the next ideal step to take is to conduct thorough feasibility studies and market survey.
With the result from your feasibility studies and market survey, you will be able to make informed decision, especially as it relates to the type of business to settle for, the location for your office, factory or store, the demographic composition of those who would need your services or product, the likely competitions that you will be confronted with, how to source for raw materials or goods and loads of other factors that can either make or mar your business.
Step 3: Choose a Catchy Name for Your Business
After coming up with a workable business idea and of course having conducted your market survey and feasibility studies, the next step is to choose a catchy name for your business.
The truth is that when it comes to Choosing a name for your business, you should be creative because whatever name you choose for your business will go a long way to create a perception of what the business represents. Usually it is the norm for people to follow the trend in the industry they intend operating from when naming their business.
Before choosing a name for your business, it won’t cost you anything to go online and check out the names of the leading brands in the industry you intend starting a business in so as to be properly guided when choosing your own name.
It is recommended that you check to see if the business name you are planning is available as a web domain. Even if you aren’t ready to make a business website today, you may want to buy the URL in order to prevent others from acquiring it.
Step 4: Write a Workable Business Plan
Although some entrepreneurs are of the view that some small businesses don’t need a business plan. Please note that irrespective of the type of business or size of business you intend starting in Kansas, it is a wise decision to first write a good business plan, complete with pro-forma financial statements.
The truth is that in order to successfully run a business, you need to have a good and workable business plan in place. With a workable business plan in place, you will reduce the trial and error approach of doing business. You will be able to manage your business with purpose and perhaps precision; you will know what to do per time and how to handle challenges, growth and expansion.
So if you want to start your own business in Kansas, you are required to write a detailed business plan that can pass reality test when subjected to it; you should work with the facts, figures and other indices in the industry as it applies to the location you intend establishing your business.
The whole idea of writing a business plan is not just for the sake of having a business document in place; but a detail guide on how to effectively run your business from the scratch. Your business plan should outline and cover strategies on how you intend to manage your business.
The rule of thumb in writing a business plan is to try as much as possible to be realistic and never to over project when putting figures on income and profits et al. As a matter of fact, it is safer to underestimate when writing a business plan so that you won’t be so disappointed when reality sets in.
These are the key areas that should be covered in your business plan;
Executive summary and Company’s descriptions
You are expected to write about the concept of your business, descriptions of your company, your company’s vision statement, mission statement and where your company will be located and also if you intend selling out franchise or opening outlets in different cities in the United States of America and in other parts of the world.
Other key components that should not be missing in your business plan are product offering, SWOT analysis, competitive analysis, marketing and sales analysis/strategies, target market, market goals, pricing, costing and financial projection, publicity and advertising strategy, expansion and growth strategies, budget and startup capital generation et al.
Step 5: Choose a Legal Entity for Your Business
In Kansas, it is illegal to run a business entity without duly registering it as a legal entity. Interestingly, registering your Kansas company as a legal business entity, such as an LLC or a Corporation, has two major advantages; it will help increase the credibility of the business and of course it will help protect the business from personal liability in the event your business is sued.
For most small businesses, registering an LLC is a great option. In comparison to other business entities, LLCs are easier to set up and manage and they have favorable tax treatment. You can set up an LLC in Kansas for as little as $160.
Please note that if you choose not to register your company as a business entity, you will be held personally responsible for the debts and liabilities of your business. In addition, unregistered business owners may need to file a Trade Name, also known as a “DBA.” Find out if your business is required to file a DBA.
Step 6: Register Your Business Name
Once you are able to dutifully carry out all the steps listed above, then it shows that you mean business and the only step that can take you closer to starting your business in Kansas is to register your business name.
Of course, you would have done the necessary business name search that will ensure that you are not settling for a name that is already in the database. If you don’t want someone to register your business name, then you should be fast about registering the business name.
Step 7: Source for New Business Financing
When it comes to sourcing for loan for a small business in the United States, Small Business Administration (SBA) is your “Go to Place”. Getting a first-hand information on how SBA loans work in the United States of America might be all an aspiring entrepreneur needs to finance his or her business.
This is because in the United States, Small Business Administration (SBA) is a major source of financing for entrepreneurs especially those that operate small businesses.
Come to think of it, it is on record that a number of Fortune 500 companies in the United States benefited from SBA loan when they are just starting out. Big corporations such as FedEx (Federal Express), Apple and Intel among others leveraged on loans gotten from SBA.
These organizations success, and of course the trend toward small-business start-ups and entrepreneurship in America, has encouraged both the SBA and its lending partners to continue to expand its loan programs. The only reason why you should ignore this step is if you already have the required startup capital needed to kick start your business.
Step 8: Apply and Obtain the Needed Business License and Permits
The nature of the business you want to run will determine whether you need to obtain any state licenses or permits to operate your business. But you should have it in mind that in order to operate your new business legally, you will need to comply with federal, state, and local government regulations.
In many cases, this involves obtaining one or more business permits and/or licenses. For example, a food or drink related business is expected to apply and obtain food and drinks handling permits, health permits, building permits, signage permits, etc.
STEP 9: Register for a Federal Employer Identification Number (EIN).
In order to register for a Federal Employer Identification Number (EIN), you are expected to complete and file IRS Form SS-4, EIN.
You are required to file this if you: pay wages to one or more employees; or are required to have an EIN to use on a specific return, statement or document (often banks will require this for a business checking account); or plan to incorporate (in which case owners drawing salaries are considered employees).
This form can be obtained from the nearest IRS office, or call 1-800-829-3676. IRS forms and publications can be downloaded from their website: http://www.irs.gov.
STEP 10: Open a Kansas Bank Account
Using dedicated business banking and credit accounts is essential for personal asset protection. Please note that when you run your personal and business accounts as one account, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued.
You can protect your business by opening a business bank account and when you open a business account, it helps you separate your personal assets from your company’s assets, which is necessary for personal asset protection and of course it makes accounting and tax filing easier.
So also, when you open a business account, you will get a business credit card that will help you separate personal and business expenses and above all help you build your company’s credit history, which can be useful to raise capital later on.
STEP 11: Obtain a State Sales Tax Number
With limited exceptions, most businesses require an Employer Identification Number (EIN), also known as a Tax ID Number. An EIN is used to identify a business in its federal tax filings. Without an EIN, you can’t hire employees or open a business bank account.
So also, you should also be aware of important Kansas taxes that may apply to your business: If you are selling a physical product, you’ll typically need to register for Kansas Sales Tax. If you hire employees in Kansas, you will have to register for Unemployment Insurance Tax and Employee Withholding Tax on behalf of your employees.
Step 12: Purchase the Needed Business Insurance.
The rule of business engagement in Kansas is that, you can’t operate a business without having some of the basic insurance policy covers that are required by the industry you want to operate from. So, it is important to create a budget for insurance and perhaps consult an insurance broker to guide you in choosing the best and most appropriate insurance policies for your business.
You might want to consider buying some or all of these insurance policy covers for your business; General insurance, Health / Medical insurance, Liability insurance, Workers Compensation, Overhead expense disability insurance, Business owner’s policy group insurance and Payment protection insurance.
Please note that if you are going to operate your business from home, then you might want to learn about home-based business insurance and how to save money on the cost of business insurance in general in Home-Based Business Insurance.
Step 13: Lease or Rent an Ideal Office Location
Another important step to follow when establishing a small business in Kansas is to choose an ideal location for your office. When it comes to renting an office facility in Kansas, the nature of business you want to do should serve as a guide.
You can check with the local code enforcement officer to determine if your business will be in compliance with local zoning ordinances. Besides, you would need your business license and permit as part of the document to be tendered before any landlord or realtor will sign any leasing agreement with your business in Kansas.
N.B: Please, note that the information in this article is provided only for general purposes and it is no way a legal advice. No lawyer – client relationship is established or should any such relationship be assumed. For legal advice, please consult a professional lawyer.
But if you need additional assistance or have business-specific questions, we advise that you contact the appropriate authority in your local council.