The Ultimate Guide to Starting a Business

Updated January 2026. Editor's note: This was written by humans on the Skip team who collectively have helped tens of thousands of businesses get started across the US since 2020.

Starting a business exciting — and can also be overwhelming. In particular knowing what steps to take and when to take those steps so you can go from an idea to a successful revenue-generating business.

There has also been countless books, blog posts, videos written on how to start a business. One thing is certain: In 2026, there's no one way to start a business — but here are our 7 recommended steps based on the latest tools and technology we have available.

Already generating revenue? See our ultimate guide to growing a business.

Step 1: Validate Your Business Idea

Ask yourself: Is this business idea something you care about and something others care about? You need some quick validation of your business idea in order to make your first entry point.

Two things we recommend here to validate your idea:

1. Spend time writing out your own "why". This is essential. Answer questions such as why are you starting your business, what problem are you solving, how are you helping others, how will you price it? Spend at least an hour or two in deep thinking here. Write these down in a notebook, computer, or save in something like the Skip Grants Vault, which saves these why answers (and you can see how they evolve over time).
2. Do a deep dive in validation using AI. There's never been a better time to stress test ideas with experts. These experts now are large language models (LLMs) like chatGPT or business data-layers on top of LLMs like Skip Cofounder. Use these tools to ask about marketing sizing, identify the problem you're solving, and generally just ask questions about starting your business.

Keep in mind one important point here.

It's not your starting point that matters, it's getting started. Two things can be true: That most small businesses fail and that small businesses are (typically) constantly iterating and improving). Most people regret not getting started sooner, even as a side hustle.

Step 2: Choose a Business Structure

Most small businesses start as sole proprietorships or LLCs. Corporations are less common among small businesses, but in some cases are needed for your type of business.

Each structure affects taxes, liability, and paperwork. Many small business owners choose an LLC for simplicity and protection unless you plan to issue options to employees, then a type of corporation may be better. Here's a diagram that explains the key differences between business structures. If you're ready to start an LLC, you can set one up here in a few minutes.

Step 3: Register and Set Up Your Business

After validating your business idea and choosing a business structure, there are a few additional foundational things you should do to officially set up your business. Common early tasks include:

• Registering your business name
• Getting an EIN
• Opening a business bank account
• Setting up basic accounting

You might choose to not do all of these to start, but if you do choose 2, get your EIN (it's free) and open up a business bank account. Getting this right early saves time later when applying for funding or grants.

Step 4: Create a Simple Business Plan

Now it's time to do some planning. Don't get stuck on your plan, but do spend time thinking through these questions. You don’t need a 40-page plan. A strong early plan answers:

• What you sell
• Who you sell to
• How you make money
• What your first year looks like

If you'd like to create a business plan directly on Skip, you have two options:

• Get a free business plan preview which has several introductory business plan pages based on your business & you can always upgrade to the full business plan.
• Get a complete business plan with full editing capabilities.

A business plan is often required for grants, loans, and partnerships, and is included for many of the Skip $10,000 grants.

Step 5: Find Startup Funding and Grants

Many founders don’t realize there are grants available even at the idea stage. Especially early on, even small micro grants can go along way to giving you momentum and early validation.

Startup and small business funding options may include:

• Small business grants
• Microgrants
• Competitions and pitch programs
• Bootstrapping and early revenue

Unlike loans, grants don’t need to be repaid. Skip lists thousands of small business grants and is the largest grants marketplace specifically for small business owners. Skip also directly gives out grants including several up to $1k grants each week and multiple $10k grants every month.

Step 6: Build Your Online Presence

You've got the foundation: validation, plan, important documents, and early grant applications. Now it's time to establish your public identity.

At minimum, most new businesses need:

• A simple website
• A third-party business page (i.e. Google, Skip, Yelp)
• A professional email address

The good news is it's easier than ever to create your online presence in a few minutes. You can use Skip's Instant Website Builder to create an instant website using AI and a few pieces of information about your business that you can then customize. You can even list products and services and add payment links so people can purchase directly on your new website — and directly on your business page from Skip.

Step 7: Keep Moving Forward

If you've made it this far, you're had of the majority of early entrepreneurs and business owners — congratulations! Now keep going. The most successful business owners focus on progress, not perfection. Start small, learn quickly, and improve as you go. The best way to do this now is to start to get exposure for your business and your products and services. Save this post so you can reference later and check out the ultimate guide to growing your business for next steps.