Are you planning to start a new business in Henderson, Kentucky? It’s a great time to follow your entrepreneurial dreams. With Henderson’s rich agricultural roots, thriving manufacturing sector, entrepreneurial spirit, and advancing technology, Henderson offers a stable economy with many opportunities for prospective business owners. Whether you’re drawn to the ag industry, a top producer of soybean and corn in Kentucky, or you have new retail, hospitality, or professional service ideas, Henderson offers an environment where small businesses can thrive. Keep reading for everything you need to know about starting a business in Henderson!
Decide on A Business Structure
Before you can proceed with your business plan, you need to decide how to structure it. Will you oversee the business alone or co-own it with a partner?
Common Business Structures
Your choice of business structure has legal, tax, and other implications.
- Sole proprietorship: The business is owned and operated by one person. SP businesses are most common among self-employed professionals, contractors, restaurants, and more.
- Partnership: Two or more people share ownership. Partnerships are a common structure among start-ups and small businesses, including famous examples like Ben & Jerry’s and Warby Parker.
- Limited Liability Company (LLC): This hybrid business structure offers the tax benefits of a partnership with liability protection from company debts. It appeals to businesses of all sizes, from single owners and partnerships to medical practices and large corporations.
- Corporation: A separate legal entity owned by shareholders. Corporations offer the highest level of liability protection, but profits are taxed twice–first at the corporate level and then on individual shareholders.
Start Networking
If you haven’t started talking to other business owners in your industry, it’s best to begin networking sooner rather than later.
Networking with other entrepreneurs and business owners can help you connect, find opportunities, and get advice and mentorship from your more experienced peers. You can learn from others’ mistakes and get recommendations for vendors, supplies, and more.
You can find local networking opportunities through organizations like the Henderson, KY Chamber of Commerce. You can also look for business or industry groups to join on LinkedIn and Facebook.
Register and Apply for A Business License
Once you’ve chosen a business structure and started networking, it’s time to make your business official. Begin by registering your business with the state of Kentucky and applying for the necessary licenses. The Kentucky One Stop Business Portal will guide you through each step, including permits and licensing. In Henderson, license requirements may vary by business type but you’ll need an occupational license from the City of Henderson to conduct business within city limits. Be sure to research any additional requirements to get your business started.
Write A Business Plan
Creating a business plan will help you think through your idea and what you need to execute it and make financial projections. If you need to apply for financing, a solid plan will also support your business loan application.
Traditional business plans tend to be longer, but you can also take the one-page approach of a lean startup plan that only highlights critical features. Every business plan should include:
- Your Product or Service: What are you offering, and how will it stand out from the competition?
- Market Analysis: Research your target market and main competitors.
- Marketing Strategy: How do you plan to attract and retain customers?
- Financial Plan and Projections: Estimate your startup costs, operating expenses, and revenue.
Choose A Location for Your Business
Choosing the right location for your business can be a make-or-break decision. If you plan to initially run your business from home, you can skip this step. Many new business owners find it easier to rent a space initially rather than buy, but if you’re ready to purchase, we offer commercial and agricultural real estate loans to support you. And regardless of where you set up, remember that an occupational license from the City of Henderson is still required.
Get A Business Credit Card
When starting a new business, separating your personal finances from the business accounts is important. A business credit card can help you with this separation and manage daily business expenses. You can also take advantage of business credit card benefits like fraud monitoring, zero fraud liability, and no additional costs for adding employees.
Explore the business credit card options available through Field & Main Bank to find the right fit for your needs.
Apply For Business Financing
Unless your new business is self-funded, you’ll probably need business financing. From purchasing a commercial space to covering operating costs, securing the right business loan can be essential to getting your business off the ground.
Field & Main Bank offers a range of business loans for different purposes:
- Commercial Real Estate Loans: To purchase commercially zoned land or buildings.
- Construction Loans: To build a new commercial property.
- Business Lines of Credit are a flexible option for managing everyday expenses like inventory, rent, or cash flow. They can also be helpful to seasonal businesses.
- Equipment Loans: To finance essential machinery, tools, vehicles, and other equipment for your business.
- Ag Loans: We offer personalized ag financing for various needs.
Applying for the right loan can cover the critical expenses necessary to start and grow your business.
Open A Commercial Bank Account in Henderson
In addition to using a business credit card for everyday expenses, opening a business bank account is crucial to separating your personal and business finances. While you’ll probably want a business savings account at some point, start with a checking account for your business.
While many banks take a uniform approach to commercial checking accounts, Field and Main Bank offers a variety of commercial checking accounts to meet your business needs. Check out our Simply Free Business Checking, a primary account perfect for new businesses. Other options include:
- Analysis Checking: This is for businesses with more complex banking needs.
- Business Interest Checking: This is for businesses that want to earn a higher interest rate.
Set up Cash Management Services
Cash management services can help streamline your operation and maximize the money flowing in and out of your business. From payment processing to financial analysis and fraud protection, these services enable companies to run as smoothly and efficiently as possible. Field & Main Bank offers comprehensive cash management services, including merchant services to allow your business to accept credit and debit cards, positive pay to prevent check fraud, wire transfers, ACH for payroll and other electronic payments, remote deposit, and more.
To learn more about cash management, check out our blog post on the benefits of cash management.
Market Your Business
You’ll need to attract loyal customers to succeed in your new business. This is where Marketing comes in, even before you officially open. Social media platforms like Facebook and Instagram are cost-effective ways to reach your local audience and generate excitement. You may also want to consider Google Ads, Facebook Ads, or sponsored social media posts to drive traffic. Get the word out in your community by posting flyers or advertising in the local paper. Finally, your business mentors and networking groups can also help you figure out the best way to promote your business for your particular industry.
Talk to a Henderson Business or Ag Expert!
Running a successful business involves more than just good ideas. Having local insights, affordable financing, and expert advice would be best. Our Henderson-based team of experienced lenders and bankers have years of expertise in helping local businesses reach their goals. Whatever type of new business you have in mind, we are here to help you get started.
Contact us or visit one of our three Henderson locations on Main Street, Barrett Boulevard, or East Second Street. Our commercial banking team is dedicated to meeting your small business banking needs with the urgency and care you’d expect from your local trusted advisor.
