The Ultimate Guide to Running a Successful Business in Massachusetts
We can’t all hope to be the next Dunkin but we sure can try! In all seriousness, it’s important to recognize as a small business owner that 90% of startups fail.
While we can’t guarantee success in the unforgiving business world, there are plenty of ways we can set ourselves up for it! Fortunately, those steps are as straightforward as they come. Let’s talk about how to run a successful business in Massachusetts.
How To Start A Business In Massachusetts
Briefly, we will discuss what you need to start a business if you haven’t already done so. Here’s what you need to get started.
Get Enough Funding
First, you need capital. There’s no way around that. You can take out loans, payout of pocket, take on investors, or crowdsourcing. However, every business will need some amount of money.
Establish your budget and determine how much you think you will need, and provide yourself with as much leeway as possible. Running a business is more expensive than you may think.
If you live in Massachusetts, you know how expensive rent is. Renting a place to do business is going to be one of your largest expenses, along with supplies, logistics, utilities, and employee salaries and benefits. Try to have enough cash on hand for at least 3 to 6 months of these expenses before starting.
Apply For a Massachusetts Business License
This is easier than ever to do, as you can now apply for a Massachusetts business permit online, and it only costs between $20 and $50 to apply for a license. The fee to incorporate, if applicable, will be $275.
Hire Employees
Once you have your license, the next thing you need is labor. If you need skilled labor to perform the tasks for your business, like writing, cybersecurity, or carpentry, then it is best to start posting jobs as soon as possible.
If you’re looking for unskilled labor that you will need to train, like a fast-food restaurant or retail store, then you will need to allocate funds for this period, as paid training will only cost you money without immediate gain. It is best to start posting jobs at least one month before you plan to open the business.
Conduct Competitor Research
Competitor research is important in any industry, and it’s especially important early on in a business. How is a startup supposed to compete with an established competitor if they don’t know how that business operates?
Study and learn from your competition and try to analyze what they are doing right and where they could improve. From there, use that information to your advantage, learn from their mistakes, and set your company up for long-term success in the local market.
Provide Quality Service
Don’t underestimate the value of customer service. Happy customers come back and stay loyal to their favorite businesses. In fact, customer service is the most important factor in brand loyalty for 56% of consumers.
Plan For Scale
Having a plan in place to scale your business is very important, and it’s something that startups tend to forget. Sure, it would be great if one location or one niche service were enough to offer you a secure retirement, but what if it isn’t enough?
Develop a clear plan for scaling your business before you even launch it and stick to the plan as time passes.
Organize
Always keep your books in order. The sooner you get into that habit, the better off you will be. When tax time rolls around, especially during the first couple of years, you want every break you can get. Save receipts and track your income diligently starting immediately.
Focus On Marketing
Marketing is one of the most important parts of a small business, as it’s the only way to expand your reach early on. First, you need to set a marketing budget, which should be around 7% or 8% of your revenue, not of your budget.
Then, you will have to determine how that budget is allocated. Fortunately, we live in a world with many valuable marketing tools at our disposal. Here are a few to start using.
Social Media
Social media is one of the most effective ways to expand your reach without spending a dime. Simply posting content at the right time, interacting with your target audience, sharing promotions, and using some hashtags will help you build your reach.
Remember to stay on-brand and attempt to portray a professional, human presence behind your brand, especially if your market is with a younger demographic. Young people know a “bot” account when they see one.
Let people know who you are. Use your location in the title or the bio on your platform of choice and try to connect directly with your intended audience to get your company’s name out there!
Building a customer base is one challenge, keeping them is another.
Focusing on customer retention as much as acquisition, especially early on, will promote brand loyalty, which could be enough to keep your business afloat even through tough economic times.
Email campaigns serve as a great reminder to your customers of how great your products or services are. Try to make them professional, engaging, and concise. Eliminate words and sentences from your content that you don’t think is entirely necessary.
Also, make sure that your display name on the newsletter is the company name and nothing more, and try to use catchy subject lines to convert recipients into readers!
Word-of-Mouth
Whether you are running a B2B or B2C company, word travels fast. Massachusetts is known for its tight-knit communities, so use them to your advantage.
Don’t underestimate the value of word-of-mouth marketing, especially for a local business. You are far more likely to listen to a recommendation from your friend at work than you are from the ten-thousandth ad you’ve seen today. Luckily, there are plenty of ways that you can facilitate this as a business owner.
For example, local gyms typically offer referral bonuses, community events, and family discounts to incentivize these conversations. If you focus on networking, providing great service, and getting creative with your marketing, you will see results.
Search Engine Optimization
Search engine optimization is your best tool for building organic traffic to your website, and ultimately, your business. When it comes to local SEO, there’s a finish line insight for you.
What we mean is that a local company has a lot less competition than a global blog, meaning that the top spot on a Google search is within reach if you use the proper tools.
Think about what that would mean for your business. When people hop off the T and search for “dry cleaners” on Google, they aren’t going to be shown dry cleaners in Seattle. Instead, they’ll be shown the results that are relevant to their location.
The first dry cleaner is by far the most likely choice for that user. The second and third that are presented to them will be likely follow-ups but from there, it diminishes. If you manage to show up in those top 3 results with whatever business you have, that alone could be enough to keep your business running for years to come. Don’t underestimate the value of organic traffic.
Moreover, this process for local SEO takes on all of the same tactics as it would at the national or global level, such as:
- User-friendly web design
- Proper keywords
- Linking structure
- Quality of content
- Backlinks
- Mobile-friendliness
- Page speed
The list goes on for over 200 other factors, but don’t be discouraged. You only have to compete locally and there is another key distinction for local SEO, and that’s adding location-specific keywords.
Let’s say you are running a security business. You would be using keywords like “security services in Fitchburg, Massachusetts” or “private security firm in Needham”.
Consequently, when people search for those specific terms within those locations, it’s more likely that your site will be displayed, bringing you the most relevant traffic possible.
Advertisements
The moment we’ve all been waiting for.
Don’t be afraid to let advertisements make up for the majority of your budget. Sure, other tactics are free or inexpensive, but they aren’t as reliable for short-term gains. Particularly with SEO and social media, most “free” marketing tools should be considered marathons, not sprints.
Well, marathons are slow and they take time to complete, but the rewards are too high to pass up. In the meantime, providing your company with a short-term boost will help ensure that you get to reap those rewards.
Don’t just focus on pouring money into a PPC campaign. Instead, focus on the quality of your ads and your conversion rates. Spending some resources on these early on will serve as a valuable investment. Remember, you lose money when users click on your ads, so the more that are converted into customers, the more money you save.
Plant The Seeds!
If you’re starting a business in Massachusetts, the best you can do is plant the seeds and try to grow them into a flower, or even a bundle of them! Start your business off right by following these tips and setting yourself up for success. Stay up to date with our latest business news and feel free to contact us with any questions!
