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S tarting a business can feel over- whelming. A 2025 Kantar survey of 300 TD Bank customers found 28% of respondents aspire to start their own business, up from 21% in 2022. With entrepreneurship on the rise, it's taking that first step that can feel daunting for many. Interestingly, only 47% of local small business owners (SBOs) leverage a bank for business advice, according to TD Bank's inaugural Financial Preparedness Survey: Small Business Owners. This leaves a potential missed opportunity in leveraging the expertise and knowledge of financial advisors. "Every great business begins with an idea, but it thrives with smart strategic and financial planning. Entrepreneurs should use their banker as a cost-free resource to provide insights, make connections and offer support to make growth possible," said Don Baker, Commercial Market President of Northern New England, TD Bank. Here are three steps to prepare to become a business owner and help the operation grow. 1. Develop a robust business plan and growth mindset Find solid footing when starting a business by creating a business plan. Include an outline of day-to-day operations, who will serve what role and how to gain customers. Other essential components include outlining your idea, target market, a competitive analysis and a revenue model. While completing this assessment, also identify the business' "unique value proposition" — what makes it stand out over the competition. Next, set one-, three- and five-year financial projections and establish a budget for startup costs. The budget should include working capital needed until incoming revenue can sustain the business, especially if the business is a brand-new concept and not tied to a known business model. Finally, adopt a growth mindset that al- lows you to be open to learning, adapting and embracing challenges, and most of all, be nimble if something isn't working as anticipated. 2. Secure funding and build financial resilience Determine the amount of capital the busi- ness needs to start up and the potential funding sources. This might include a loan or line of credit, small business grants or other sources. When underwriting a potential loan or line of credit, a bank will consider your personal credit score if the business has no established credit history. Missteps in personal credit — de- faulting on student loans, carrying large credit card balances and more — could cost the business. Next, open a separate business bank account to keep finances organized and separate from personal funds to make accounting, bookkeeping and even tax time easier. In many cases, business accounts also afford a different level of protection and security than personal checking accounts. Understand your daily/weekly/month- ly cash flow management and plan for ongoing expenses and financial setbacks or unexpected costs. Too many good businesses shut down because of the first few setbacks, which are common in any business type. 3. Ensure Legal and Operational Readiness Following the first two steps, register the business and choose the right legal structure. Some fields require profes- sional designations, while others could have additional expenditures to set up a legal structure (LLC, S-Corp) to protect the business. Make sure to discuss this with a CPA or business advisor. Next, obtain necessary licenses, per- mits and insurance at a federal, state and/or municipal level. Finally, get ready to operate by setting up systems includ- ing point-of-sale systems, accounting software, payment systems, payroll and others needed for the specific business type. Add these into the start-up costs of the business to make sure you have adequate funds — and support. With proper financial guidance and a strong banking partner, small business owners can confidently focus on bringing their entrepreneurial visions to life. S P O N S O R E D C O N T E N T Three Ways to Prepare to Start a Business For more information: We hope you found this helpful. This article is based on information available in August 2025 and is subject to change. It is provided as a convenience and for general information purposes only. Our content is not intended to provide legal, tax, investment, or financial advice or to indicate that a particular TD Bank or third-party product or service is available or right for you. For specific advice about your unique circumstances, consider talking with a qualified professional.

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