So you want to start a small business – that’s awesome! Small businesses account for over 50% of jobs in the United States, and two out of three new jobs in the U.S. are created by small businesses each year.

In the past, most brick and mortar businesses began with a business plan, applied for a small business loan, incorporated themselves and got down to, well, business. Today, the Internet has not only changed the entire nature of the small business world; it has changed the way SMBs must think about creating and positioning themselves before they even enter the market.

What follows is a pre-game checklist of things to do – and things to think about – before you start a small business.

1. Survey the competition

It may sound counter-intuitive, but it’s essential to make sure that there is plenty of competition in your market before you start a small business.

If there is absolutely no competition, or no successful competition, it doesn’t mean that you’re a brilliant business pioneer with an idea unlike anything the world has ever seen. Instead, it most likely means that someone has already tried your idea and failed.

The key to deciding what kind of business to start lies in making sure that there is money to be made in your chosen market. No competition means that no one is making money, and that you probably won’t either.

Just like deciding upon keywords with low, medium or high search engine competition, choosing a niche with a moderate level of healthy competition assures you that your target market is alive and well… and ready to spend money.

It also means that you don’t have to reinvent the wheel. Assess your competition, figure out a problem they’re not solving very well, and find a way to offer something even better.

2. Solve a specific problem

The products and/or services offered by your small business must solve a specific, pressing problem that your customer needs remedied now.

It’s your job to either ease your customer’s pain, or increase their pleasure, and to do it in a unique way that keeps them coming back again and again.

Are you easing the pain caused by termites by providing your customers with expert, affordable pest removal services? Are you solving the problem of too-few lawn care services available for a given area? Or are you increasing your customer’s pleasure by creating out-of-this-world gluten-free cupcakes?

Remember, your product must solve the customer’s problem and give them what they want – which may not necessarily coincide with what you want to give.

So what’s the difference? Here’s an example:

While you may think those neon-yellow bike pants with a built-in iPhone charger will sell like hotcakes because you love neon-yellow bike pants, it doesn’t mean that everyone else loves neon-yellow bike pants. Your customers may very well prefer lime green bike pants, and if that’s the case, you better start giving the people what they want (in short, either go green or go home).

Regardless of your personal tastes or what you think people should prefer, as a small business owner, you need to cater to your customer’s needs and wants, not your own.

3. Define your target market

Once you’ve figured out the problem you’re going to solve, you need to become intimate with your target market.

Which people most desperately need the solution you’re offering and have the money to pay for it today? What type of person would you love to interact with on a daily basis?

If you suspect that your target market is comprised of Fortune 500 CEOs with over $1 billion in annual income, but the thought of giving Larry Page a call makes your blood run cold, you may need to rethink your approach.

In addition to targeting people who want, need, and crave your services, your target market must consist of people you actually like. Fall in love with your target market, and watch yourself going above and beyond the call of duty to get and keep their business.

Paint a specific picture of your ideal customer. Instead of targeting middle class Latina females from ages 35-47, create a profile of your target market, personified: Her name is Elena Sanchez, she is 38 years old, a mother of two, works in a travel agency, owns a home, and is thinking about going back to school.

Once you’ve defined Elena on paper, you’ll be able to start a small business with her in mind.

Everything from your business plan to your marketing materials will attract people like Elena and let you qualify your leads without doing any extra legwork.

Remember, if you try to appeal to everyone, you’ll appeal to no one!

4. Create a game plan

When you finally decide that you’re ready to start a small business, you may be tempted to simply dive right in!

As excited as you may be, force yourself to put the brakes on long enough to create a detailed game plan that incorporates your above work with 3, 6, and 12-month checkpoints.

What are your goals for your first year of business? How many sales would you like to make, and how much do you expect to make in revenue? More importantly, what will you need to spend to get started?

See also: What Is Annual Revenue? Meaning, Formula & Examples

Ask yourself all of these questions, and get specific with the answers. After all, if you can’t even imagine your business generating $100,000 in its first year, how is it ever going to actually happen?

As you set goals and plan for the future, keep in mind that much – if not most – of what you write down will probably change. The important thing is that you take the time to brainstorm ideas and take proof of concept steps, set specific intentions, anticipate problems and needs, and account for every area of your business’s operations.

5. Gather your tools

If you’re starting an online business, you may be able to begin with little more than a domain name, a hosting plan and a smile. Figure out the essential tools needed to get things moving, and calculate your bare bones startup costs.

Forget expensive marketing plans, the web design firm with a $20,000 minimum, or the Mercedes of email automation software. That will all come in time. In the beginning, stick to the basics – a solid landing page, a way to capture email addresses, and the ingredients needed to bake the world’s best muffins (or the snake needed to unclog the world’s gnarliest drain). You might also consider collaborating with a landing page design agency to craft a high-converting landing page that captures attention and drives engagement.

A NPS tool might also be handy as you get to know your customers and hone your message accordingly. Check out this NPS software comparison article.

Focus on the tools that will allow you to provide the best service or create the best product possible – promoting your work can wait until later.

6. Start small

Few small business owners start a small business by getting an enormous loan or grant, quitting their day jobs and simply diving in. Don’t be afraid to start small and begin to grow your business while still working a full time job.

As you spend time meeting with a limited number of clients or shipping a few products here and there, you’ll be able to asses how much growth will need to happen before you can make the leap and quit your 9 to 5. You’ll also have a security blanket while making those inevitable first-year-in-business blunders.

7. Be flexible

When you start a small business, it’s easy to become attached to your game plan. After all, you’ve put in all this work defining your target market, creating your unique selling proposition, and gathering the tools of the trade, right?

But what if, after spending countless hours perfecting your organic lemon soap recipe, you find that your customers really prefer your blackberry hand lotion?

While it may be tempting to try and convince your customers of the many health benefits of organic lemons, the savvy SMB will scrap the soap and stick with the lotion every time. Listen to your customers, and take an objective look at what’s working and what’s not.

Successful small business owners happily ditch ideas that don’t work, because they know that doing so is the only way to make room for bigger,  better ideas.

8. Test, test, test!

What if you know something’s not working, but you can’t figure out why? The key to this common dilemma lies in split testing.

Whether it’s your website, an email blast, or the product itself, making small changes to your web copy, colors, fonts, and positioning can have a huge psychological impact on how your brand is perceived.

For example, if you’re a coder, transitioning from MySQL to MariaDB can really change how your site looks and functions, as MariaDB can support invisible columns and temporary table space. Use NameHero’s guide to safely switch over to MariaDB.

Determine exactly what changes need to be made by offering half of your customers Version A, and half of your customers Version B. The version with the most clicks and conversions wins, and can be implemented across all of your marketing materials for maximum effect.

9.  Get a mentor

Whether it’s a coach, competitor or friend, finding another small business owner to mentor you in your first year will help you through the inevitable ups and downs that occur when you start a small business.

Keep yourself accountable to your goals, gain insight from a seasoned pro, and give yourself a shoulder to cry on when the going gets tough. Hooking up with a stellar mentor can shave years off the SMB learning curve, so start looking now! You’ll be surprised at how eager others are to share their knowledge and help a newbie out.

10. Celebrate

Holy crap, you did it! Don’t forget to take a minute and celebrate your achievements, no matter how insignificant they may seem at the time. It’s no small feat to start a small business; doing so takes buckets of courage, resourcefulness, and the ability to dust yourself off and try, try again.

What’s one thing you know now that you wish you’d known before starting your small business?

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