According to the US Census Bureau, in 2021 5.4 million businesses filed applications, which is an almost 23% increase from 2020 when 4.4 million applications were filed.
This underscores the growing trend in people choosing the path of entrepreneurship. If you’re ready to throw your hat in the ring with a health-based business, here are some tips to help you set yourself apart to attract customers. Finding Funding.
Decide which funding option best matches your situation. Here are some small business funding sources to consider:
• Self-funding. To self-fund, you can pull money from a 401(k), get money from family, sell things, or use savings.
• Venture capital. If you don't mind sharing ownership in your business, venture capital from investors is an option.
• Loans. Getting a small business loan gives you more control over the business and how funds are used compared to having investors.
• Crowdfunding. This option happens when lots of individuals contribute funds to your business. You typically give them a gift in exchange, such as a free product or their name listed somewhere.
Choosing a Legal Structure
An LLC is a popular option that provides tax benefits, requires less paperwork, and protects you against personal liability. To register as an LLC, you can file your articles of organization online. It's a straightforward process, but if you want to focus on growing your business instead of handling paperwork, you can work with a formation service, which is cheaper than paying a lawyer.
Understanding Regulations
Health industries are often heavily regulated, especially regarding claims you can make. For example, if your business is making and selling a healthy food product, the FDA's product labeling regulations restrict claims that the food helps with certain health conditions or diseases. Review regulations related to your specific health-based business to avoid future legal issues.
Hiring Employees
When you're ready to hire employees, follow IRS requirements for employees, which include having them complete a W-4. You also need to withhold income taxes and file proper paperwork each year.
Marketing Your Business
Before you promote your health-based business, create a branding plan to present your message clearly. Identify your target audience, such as new mothers for your postpartum yoga class or busy single people for your healthy meal prep service. Market your business on social media and other platforms where your audience spends time. You can market your business for free on social media channels and interact directly with health-conscious consumers to help build trust. Additionally, you can better connect with your audience by using a free online logo design tool that gives you the opportunity to customize a logo that’s a perfect fit for your new business.
Growing Your Business
Create a business plan to detail every aspect of your business. Set growth goals with steps to help you reach those goals. Evaluate your strategies to determine which growth methods are most effective. In a health-based business, identifying the problems of your target audience and providing solutions is often effective.
Partnering With Others
Collaborate with other health-based businesses in your area or online to share ideas and promote one another. If you own a health food store, you might invite a dietician to do on-site consultations or lectures. If you're a personal trainer, you might partner with a store that sells exercise equipment for cross-promotion.
Running a health-based business can be challenging, but by following these tips, you can help your business grow -- which allows you to make a difference in the lives of your customers.
If you’re having trouble getting approved for a loan, Diamond Ethical can help with your business growth and development needs. Call (210) 900-3706 to learn more.