How to Start a Small Business: The Order That Works
Network Navigator · July 13, 2026
Sequence matters more than speed. Doing these in the wrong order is what forces founders to redo paperwork and reopen accounts.
1. Confirm demand
Get one paying customer, even informally. Everything after this is easier when you know the offer sells.
2. Form the entity
Register your LLC or corporation with the Alabama Secretary of State, then get an EIN from the IRS. The EIN is free and takes minutes online. Do not pay a third party for it.
3. License locally
Alabama requires a business privilege license through the county probate office, plus a city business license where you operate. Jefferson County and the City of Birmingham are separate filings. Home-based businesses may also need a zoning check.
4. Separate the money
Open a business bank account the same week you get the EIN. Mixing personal and business funds is the single most common reason a lender cannot underwrite a good business.
Set up simple bookkeeping now. Spreadsheets are fine. Nothing is not.
5. Price for the whole cost
Price to cover materials, your time at a real hourly rate, overhead, taxes, and profit. Most new owners price against a competitor and quietly work for free.
6. Build one repeatable channel
Pick a single way to find customers and run it until it produces predictably. Referrals, a Google Business Profile, one social platform, or direct outreach. One, done consistently, beats five done occasionally.
Your next step
Free technical assistance exists in Birmingham for every step above.
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