Use the guidelines below to plan your business operations!
Employer Requirements
Hiring employees is an important step for opening and running a successful business. See below for some things to consider when you’re ready to staff up!
One of the most significant expenses for a business is the cost of hiring and maintaining a workforce. Here’s why it’s important to factor these costs into your budget
- Hiring Costs: Hiring involves various costs, including advertising job openings, conducting interviews, and training new employees. Depending on the role, you may also need to budget for uniforms or other job-specific requirements.
- Salaries and Wages: Your employees’ salaries or wages will likely be one of your largest ongoing expenses. You’ll need to offer competitive pay to attract and retain quality staff. Remember to factor in overtime pay and holiday pay where applicable.
- Payroll Taxes: As an employer, you’re responsible for withholding payroll taxes from your employees’ wages and paying them to the appropriate tax authorities. These can include Social Security and Medicare taxes, federal and state unemployment taxes, and others depending on your location.
- Benefits: If you plan to offer benefits such as health insurance, retirement plans, or paid time off, these costs should also be included in your budget.
Remember, while employees are a cost, they’re also one of your most valuable assets. A well-trained, motivated workforce can drive sales, provide excellent customer service, and contribute to a positive store atmosphere. Always factor these costs into your budget to ensure your business is well-staffed and prepared for success.
Hire employees
Capital Area Workforce Development can help find and train employees for your business.
Entrepreneurs in Raleigh can leverage the SizeUp tool available on the city’s website to gain valuable insights into their industry. This tool allows users to compare their business to others in the same industry, including information about what similar businesses are paying their employees. By entering relevant information about their business, entrepreneurs can see a detailed report that includes average salaries in their industry. This data can be instrumental in making informed decisions about competitive salary offerings, budget planning, and overall business strategy. Please note that while the tool provides valuable insights, it’s always important to consider other factors such as business goals, market trends, and individual employee skills and experience when determining salaries.
Check if you need unemployment insurance
Unemployment insurance tax is a tax on employer payrolls paid by employers from which unemployment benefits are paid to qualified unemployed workers. Visit the NC Division of Employment Security for more information.
You are required to pay taxes if you are:
- A general business employer with gross payroll of at least $1,500 in any calendar quarter or with at least one worker in 20 different weeks during a calendar year.
- An employer who acquires all or any portion of a liable business in North Carolina.
- An employer who voluntarily elects to become liable regardless of not meeting the required criteria.
- An employer subject to the Federal Unemployment Tax Act, 26 U.S.C. § 3301 et seq.
- A 501(c)(3) non-profit organization with at least four workers in 20 different calendar weeks during a calendar year.
- An employer with agricultural labor of 10 or more workers on any day during 20 different calendar weeks in a calendar year, or with $20,000 or more in gross payroll for any calendar quarter.
- An employer with domestic employment in a private home, college club, fraternity or sorority with a gross payroll of at least $1,000 in any calendar quarter.
- A state or local government agency or department.
- An employment service company that contracts to supply individuals to perform employment services for clients or customers.
- Any Indian Tribe as defined in the Federal Unemployment Tax Act.
Protecting intellectual property
When you begin your business, your ideas and know-how may be some of your most valuable assets. Patents, trademarks, and copyrights, together, are called intellectual property. If your company’s activities are in any of these areas, list possible assets that should be protected, and evaluate their commercial importance to your company.
- US Patent & Trademark Office: (800) 786-9199
- Copyright Office: (202) 707-3000
- Federal Trademark Assistance: (703) 308-9000 or (800) 786-9199
- NC Secretary of State: (919) 814-5400
Minority and Women-owned Business Enterprise (MWBE)
The City of Raleigh encourages and provides equal opportunities for certified MWBE businesses to participate in all aspects of the City’s contracting and procurement programs including professional services, goods and other services, and construction.
Who is Eligible for MWBE Certification?
According to General Statute (143-128.2) a “minority business” is defined as:
- At least 51 percent owned and controlled by one or more minority persons or socially and economically disadvantaged individuals. The statute also includes corporations in which at least 51% of stock is owned by one or more minority or socially and economically disadvantaged individuals.
- The statute defines the term “minority person” as the following: Black, Hispanic, Asian American, American Indian, Female
- A "socially and economically disadvantaged individual" is defined by reference to a federal statute (15 U.S. C. § 637). Socially disadvantaged individuals are "those who have been subjected to racial or ethnic prejudice or cultural bias because of their identity as a member of a group without regard to their individual qualities". Economically disadvantaged individuals "are those socially disadvantaged individuals whose ability to compete in the free enterprise system has been impaired due to diminished capital and credit opportunities as compared to others in the same business that are not socially disadvantaged".
Obtain Workers’ Compensation Insurance
For 3 or more employees, you’ll likely need workers’ compensation insurance. Learn more at NC Industrial Commission.
Complete Federal I-9 Forms
Use Form I-9 to verify the identity and employment authorization of individuals hired for employment in the United States. All U.S. employers must properly complete Form I-9 for each individual they hire for employment in the United States.
Post required workplace labor law posters
NCDOL requires all businesses in North Carolina to post a copy of the Wage and Hour Notice to Employees and the OSH Notice to Employees (North Carolina Workplace Labor Laws Posters) in a conspicuous place where notices to employees are customarily posted. You can order free copies of these posters and learn more about additional state and federal poster requirements from the NC Department of Labor’s website.
Budgeting for Essential Systems: Security, Point of Sale, and Computer Systems
When planning your business budget, it’s crucial to account for the costs associated with essential systems like security systems, point of sale (POS) systems, and other computer systems. Here’s why these are important:
- Security Systems: A robust security system is a must-have for any retail business. It protects your assets from theft and vandalism, and can also reduce insurance costs. Your budget should include the cost of security cameras, alarm systems, and possibly a security service.
- Point of Sale Systems: POS systems are at the heart of your retail operations. They handle everything from sales transactions to inventory management. Modern POS systems can also provide valuable insights into your business, helping you make informed decisions. Remember to budget not only for the initial purchase, but also for software updates, maintenance, and potential hardware upgrades.
- Other Computer Systems: Depending on your business needs, you may require additional computer systems. This could include customer relationship management (CRM) software, email marketing tools, or accounting software. These systems can streamline your operations and improve customer service, but they also come with costs for licensing, subscription fees, and IT support.
Remember, these systems are investments in the smooth operation and long-term success of your retail business. While they may seem costly upfront, they can save you money in the long run by preventing losses, improving efficiency, and providing valuable business insights.
Prepare to open
You’re almost there! Now it’s time to decide when to open your new business and how to get the word out. Check out the following tips for things to consider to ensure a smooth opening.
Open a business banking account
If you haven’t already opened a business bank account, you should do so at this time. A business bank account helps you stay legally compliant and protected by keeping your business funds separate from your personal funds. Learn more about the benefits of business banking accounts, documents you will need to open one, and how to find an account.
Create a marketing plan
The Small Business Administration (SBA) is a valuable resource for entrepreneurs and small business owners. It provides a variety of services, one of which includes assistance with creating a sample marketing plan. This plan is a strategic document that outlines your marketing objectives and the tactics you’ll use to achieve them. It can cover everything from identifying your target market to setting your budget and tracking your progress. The SBA’s guidance can be instrumental in crafting a marketing plan that aligns with your business goals, helping you to effectively reach your target audience and grow your business. The Small Business Administration can help you with a sample marketing plan.
List your business online
Establishing a presence for your business on platforms like Google and Yelp is beneficial as it enhances your business’s visibility online. This allows potential customers to discover your services more easily, read reviews, and gain a better understanding of what you offer. It can significantly improve your customer reach, foster trust, and ultimately drive more traffic to your business, contributing to growth and success in the digital marketplace. Setting up an account and page for your business on services like Google and Yelp can allow customers to find information about your business more easily.
Begin building community with fellow small business owners
Start forging connections with Raleigh’s small business community. Numerous local business alliances offer networking events and opportunities to interact with like-minded entrepreneurs.
Plan your grand opening
A grand opening can be a great marketing push, but it doesn’t have to be over the top. You can budget for the event from your marketing plan and set a date (ideally a few months in advance). Many businesses hold their grand opening after they have already opened their doors to make sure operations run smoothly. Make sure to promote your event!
Sustaining and growing your business
Entrepreneurial and Small Business Support Organizations and Business Alliances, play a pivotal role in nurturing the growth and sustainability of small businesses. In Raleigh, the city collaborates with several leading organizations to foster entrepreneurship and innovation, contributing to a vibrant business community. These organizations provide businesses with an ecosystem to connect and engage with other businesses, fueling growth and success.
The ecosystem offers a wealth of resources, many of which are free of charge. They provide training and development resources on a variety of topics, including business models, customer acquisition, marketing strategies, profitability, accounting, and other technical operating best practices.
Connecting with these resources is crucial for any business looking to sustain and grow after opening.