How to Start an Organizing Business

start an organizing business

Starting an organizing business can be very profitable. With proper planning, execution and hard work, you can enjoy great success. Below you will learn the keys to launching a successful organizing business.

Importantly, a critical step in starting an organizing business is to complete your business plan. To help you out, you should download Growthink’s Ultimate Business Plan Template here.

14 Steps To Start an Organizing Business:

  1. Choose the Name for Your Organizing Business
  2. Develop Your Organizing Business Plan
  3. Choose the Legal Structure for Your Organizing Business
  4. Secure Startup Funding for Your Organizing Business (If Needed)
  5. Secure a Location for Your Business
  6. Register Your Organizing Business with the IRS
  7. Open a Business Bank Account
  8. Get a Business Credit Card
  9. Get the Required Business Licenses and Permits
  10. Get Business Insurance for Your Organizing Business
  11. Buy or Lease the Right Organizing Business Equipment
  12. Develop Your Organizing Business Marketing Materials
  13. Purchase and Setup the Software Needed to Run Your Organizing Business
  14. Open for Business

 

1. Choose the Name for Your Organizing Business

The first step to starting an organizing business is to choose your business’ name.  

This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your organizing business:

  1. Make sure the name is available. Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
  2. Keep it simple. The best names are usually ones that are easy to remember, pronounce and spell.
  3. Think about marketing. Come up with a name that reflects the desired brand and/or focus of your organizing business.

 

2. Develop Your Organizing Business Plan

One of the most important steps in starting an organizing business is to develop your business plan. The process of creating your plan ensures that you fully understand your market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise capital for your business.

Your business plan should include the following sections:

  1. Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your organizing business.
  2. Company Overview – this section tells the reader about the history of your organizing business and what type of organizing business you operate. For example, are you a professional organizer, residential organizer, or a commercial organizer?
  3. Industry Analysis – here you will document key information about the professional organizing industry. Conduct market research and document how big the industry is and what trends are affecting it.
  4. Customer Analysis – in this section, you will document who your ideal or target customers are and their demographics. For example, how old are they? Where do they live? What do they find important when purchasing services like the ones you will offer?
  5. Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
  6. Marketing Plan – your marketing plan should address the 4Ps: Product, Price, Promotions and Place.
    • Product: Determine and document what products/services you will offer 
    • Prices: Document the prices of your products/services
    • Place: Where will your business be located and how will that location help you increase sales?
    • Promotions: What promotional methods will you use to attract customers to your organizing business? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization and/or social media marketing.
  1. Operations Plan – here you will determine the key processes you will need to run your day-to-day operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
  2. Management Team – this section details the background of your company’s management team.
  3. Financial Plan – finally, the financial plan answers questions including the following:
    • What startup costs will you incur?
    • How will your organizing business make money?
    • What are your projected sales and expenses for the next five years?
    • Do you need to raise funding to launch your business?

 

3. Choose the Legal Structure for Your Organizing Business

Next you need to choose a legal business structure for your own professional organizing business and register it and your business name with the Secretary of State in each state where you operate your business.

Below are the five most common legal structures:

1) Sole proprietorship

A sole proprietorship is a business entity in which the owner of the organizing business and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.

2) Partnerships

A partnership is a legal structure that is popular among small business owners. It is an agreement between two or more people who want to start an organizing business together. The partners share in the profits and losses of the business. 

The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.

3) Limited Liability Company (LLC)

A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for an organizing business include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.

4) C Corporation

A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for an organizing business is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.

5) S Corporation

An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.

Once you register your organizing business, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.

 

4. Secure Startup Funding for Your Organizing Business (If Needed)

In developing your organizing business plan, you might have determined that you need to raise funding to launch your business. 

If so, the main sources of funding for an organizing business to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in an organizing business that they believe has high potential for growth.

 

5. Secure a Location for Your Business

When starting an organizing business, the first step is to find a great location. The location should be accessible to your target market and have enough space to accommodate your business operations. You should also consider the cost of renting or leasing the space.

 

6. Register Your Organizing Business with the IRS

Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).

Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.

Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.

 

7. Open a Business Bank Account

It is important to establish a bank account in your organizing business’ name. This process is fairly simple and involves the following steps:

  1. Identify and contact the bank you want to use
  2. Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
  3. Complete the bank’s application form and provide all relevant information
  4. Meet with a banker to discuss your business needs and establish a relationship with them
If you’d like to quickly and easily complete your business plan, download Growthink’s Ultimate Business Plan Template and complete your business plan and financial model in hours.

8. Get a Business Credit Card

You should get a business credit card for your organizing business to help you separate personal and business expenses.

You can either apply for a business credit card through your bank or apply for one through a credit card company.

When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.

Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.

 

9. Get the Required Business Licenses and Permits

There are a few licenses and permits you will need to start an organizing business. You will need a business license, tax ID, and trade name registration. You may also need a special use permit if your business will be located in a residential area.

 

10. Get Business Insurance for Your Organizing Business

The type of insurance you need to operate an organizing business depends on the services you offer.

Some business insurance policies you should consider for your organizing business include:

  • General liability insurance: This covers accidents and injuries that occur on your property. It also covers damages caused by your employees or products.
  • Workers’ compensation insurance: If you have employees, this type of policy works with your general liability policy to protect against workplace injuries and accidents. It also covers medical expenses and lost wages.
  • Commercial property insurance: This covers damage to your property caused by fire, theft, or vandalism.
  • Business interruption insurance: This covers lost income and expenses if your business is forced to close due to a covered event.
  • Professional liability insurance: This protects your business against claims of professional negligence.

Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs. 

 

11. Buy or Lease the Right Organizing Business Equipment

To run an organizing business, you will need some basic equipment. This includes a desk, chair, file cabinets, shelving, and boxes. You may also want to invest in some organizational tools such as labels, bins, and folders. It is also important to have a computer and phone to keep in touch with clients.

 

12. Develop Your Organizing Business Marketing Materials

Marketing materials will be required to attract and retain customers to your own business.

The key marketing materials you will need are as follows:

  1. Logo: Spend some time developing a good logo for your organizing business. Your logo will be printed on company stationery, business cards, marketing materials and so forth. The right logo can increase customer trust and awareness of your brand.
  2. Website: Likewise, a professional organizing business website provides potential customers with information about the services you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how customers perceive you.
  3. Social Media Accounts: establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media networks will help customers and others find and interact with your organizing business.

 

13. Purchase and Setup the Software Needed to Run Your Organizing Business

Important software you need for your organizing business is a customer relationship management (CRM) program to keep track of your customers and their contact information. You’ll also need accounting software to manage your finances. Other helpful types of software for professional organizers include project management software, invoicing software, and email marketing software.

 

14. Open for Business

You are now ready to open your organizing business. If you followed the steps above, you should be in a great position to build a successful business. Below are answers to frequently asked questions that might further help you.
 

Additional Resources

Professional Organizer Mavericks
 

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How to Start an Organizing Business FAQs

No, it is not hard to start an organizing business. There are many online resources and support groups available to help you learn business skills and get started. You can also find books, articles, and videos about the industry. However, be prepared to work hard and put in the time necessary to make your business successful.

The best way to start an organizing business with no experience is to do some research and attend workshops on how to start a business. There are a lot of resources available online and in your community that can help. You can also reach out to other organizing professionals for advice.

The most profitable type of organizing business is a professional organizing business. This type of business is focused on helping clients organize their personal and professional lives. Professional organizers can charge high rates for their organizing services.

The cost to start a small organizing business can range anywhere from $500 to $5,000, depending on the size and scope of the operation. The cost can be much greater if the purchase or lease of a facility will be involved. 

Organizing businesses can have a number of ongoing expenses, such as advertising, employee salaries, and office supplies. Some businesses may also need to pay for outside services, such as bookkeeping or legal assistance.

Organizing businesses make money by providing organizing services to clients. This usually includes helping to declutter their home or office, creating a system for organizing their belongings, and teaching them how to stay tidy in the future. Other organizers also offer virtual organizing services where clients are met exclusively using technology via phones, tablets or computers.

Yes, an organizing business can be profitable because people often seek assistance to organize their lives. Whether it involves getting their homes, offices, or their time in order, people are willing to pay for help becoming more organized. Additionally, an organizing business can be run from home, making it even more profitable.

One of the main reasons most professional organizers fail is because they do not have a solid business plan. Without a clear plan, it can be difficult to make your business successful. Additionally, many organizing businesses struggle because they are not able to get enough clients or charge enough for their services.


 

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