Five Tips for Forming Your First Business in 2025

In a recent interview, Northwest’s Chief Product Officer, Gib Olander, reflected on his extensive career—from the lessons that shaped it to the success that continues to drive him in his current role. His insights, developed over years of experience, offer valuable guidance for anyone starting or growing a business.

What To Know Before Starting a Business

“A pivotal moment in my career,” our CPO Gib said in his interview with Authority Magazine, “came when I founded my own software startup. I quickly realized that in order to succeed, I needed to engage with and learn from small businesses.” Starting a business is something potential entrepreneurs often put off due to the abundant unknowns.

There’s no way to avoid learning hard lessons along the way and, in fact, those lessons will usually enrich the journey. You don’t have to do everything the hard way, though. There are bits of wisdom many people considering starting a business in 2025 could benefit from that Gib wished someone told him years ago.

If you’re ready to take the next step toward your entrepreneurial goals, Northwest is always here for you. Hire us to form your business, act as your registered agent, or build your business website. Whatever your business needs, we have you covered.

1. Develop a clear, scalable strategy

Understanding the needs of your market, or the group your products and services are meant for, is something most new business owners put great effort into. The means of delivering these offerings, however, often goes neglected.

In order to succeed, prospective entrepreneurs should work on scalable strategies for connecting their products with their ideal customers, just as much as they aim to perfect the product itself for said customers. If you’re acquiring 10 customers a month by hitting the pavement and knocking door to door offering home maintenance services, consider whether that’s something that can be scaled to 100 new customers a month as your business grows.

2. Define your unique value

The first question a customer will often ask is: “Why is this worth my time or money?” Much like the art of the elevator pitch, business owners should be able to present the unique value of their business, right from the start.

Dial in your value proposition for customers and clearly outline why your product is an excellent choice by figuring out your business’s story and what makes it different. Learning what makes your products and services different from everyone else in your industry gives customers and clients a compelling reason to support you and your business.

3. Keep track of your business’s cash

While being profitable is the goal of any new business venture, understanding your cashflow beyond temporary profitability is the mark of a great business owner. Beyond focusing on earning more, don’t forget the importance of:

• funding the growth of your company
• saving for down periods
• making well-timed investments

Cash flow is the lifeblood that keeps a business beating, and should be respected as such.

4. Establish a separate legal entity

Mixing personal assets or activities with business operations is a surefire way to leave yourself open to trouble. Forming an entity separate from yourself to avoid legal liability, such as starting an LLC or registering a corporation, is the most cost-effective way to avoid legal troubles before they begin. By registering a business with the state, you are also protecting your personal assets from being claimed due to business debts.

5. Anticipate employee needs

The ability to build a team for your business is one of the most powerful tools at your disposal. Aside from simply hiring employees to fill roles, collaboration between like-minded teammates will yield far more innovation and creative solutions than a one-person show. If you want to succeed as a team, you’ll need to:

• build a positive and supportive company culture
• establish processes that align with your company’s strategies
• develop a system for training and cross-training
• plan for emergencies and absences

Making sure you’ve built the right team is half the battle, the other half is ensuring you’re providing all the support and and structure that team needs to be successful.

Turning a Dream into a Business

“If I could start a movement, it would be centered around the idea that the difference between a dream and a business is execution.”  – Gib Olander, business strategist and Northwest Chief Product Officer.

Echoing Gib’s thoughts on taking the leap into business ownership, Northwest believes the best time to start a business is right now. Don’t let your dream of being your own boss lie dormant inside. Start your journey today instead of waiting.