Majorly dominated by an agrarian economy, South Dakota has diversified its position to attract new businesses. South Dakota and its government offer a growing platform for new businesses. It’s an economy based majorly on its rural resources. Government spending is also an important segment of the state’s economy.
Developing technology and the internet has helped people start their own businesses from home in the state. If you are planning to start a business of your home in South Dakota, this article will help you explore a variety of opportunities. Here’s a complete guide on how you can start a successful business in South Dakota.
Top 10 Small Business Ideas in South Dakota
Let’s have a look at some of the most profitable business opportunities in South Dakota
1. Virtual Assistant
Companies and businesses now need remote virtual assistants for different jobs. The jobs are available on platforms like UpWork and Fiverr. You can choose your own expertise and work from home for a specified time.
2. Bed & Breakfast Business
South Dakota has a huge tourism industry contributing billions to the state’s economy annually. The expenditure of visiting tourists have seen a huge rise in the last few years. A bed and breakfast business could turn out to be profitable among tourists who look for an alternative to hotels and motels.
3. Start A Blog
You can start to blog to earn a full-time income out of writing. While it needs dedication and time, putting up regular posts can help you run a full-time blog. You can earn from AdSense, sponsorships, and affiliates with your content on different topics.
4. Web Designing Services
While almost every business now has a website, it’s not attractive enough to engage customers. The design of a website plays a crucial role in attracting visitors. You can learn how to design websites online and can offer your services via Upwork and Fiverr.
5. Packaging Design Business
Businesses dealing with products often need good packaging. Attractive packaging often finds more buyers. If you are a designer, you can offer designs and visual graphics related to specific product packages for distribution, sale, and use.
6. Online Marketplace
While sites like Amazon and eBay charge big commissions, you can start your own online e-commerce store to cut down costs. If you manufacture anything, it’s better to have your own website. You can also choose to drop ship products from a few suppliers to sell them online.
7. Online Recruiting Portal
The service industry in South Dakota remains the largest economic contributor. While companies in sectors like retail, finance, and healthcare look for potential candidates, you can start to offer recruiting services via an online portal specific to the region.
8. Catering Business
A better alternative to a restaurant, you can start a catering business with a very nominal investment. Catering services are well paid in South Dakota, and you can even do it part-time. All you need is a commercial kitchen to start with backed by a few part-time staff like servers and assistant cooks.
9. Online Magazine
Instead of a website, you can start an online portal to bring something which readers will pay to read. This can either be something where should invest, or DIYs or how to choose a career and more. Online content has the highest reach, so you can sell your published editorial to anyone around the world.
10. Graphic Designing Services
Good designs stay in demand. While most businesses don’t need full-time designers, they often look for part-time graphic designers for assignments. You can also learn the skills online to start your own online graphic designing business.
10 Steps to Start a Business in South Dakota
If you want to legally start a business in South Dakota, follow the given steps:
Step 1. Choose a Business
The first step is to select the right business idea. Check out the above-mentioned small business ideas and opportunities and select the one that fits you most.
Step 2. Business Plan
Having a proper business plan will help you stay competitive. Start with the basics and create a detailed plan on how you want to work on your business. A good business plan will include goals, targets, objectives, and important details on how you wish to run the business.
Step 3. Financing Your Business
South Dakota does have a few investors and venture capital firms, but finding investment may turn out to be difficult. You can though choose to self finance your own business. There are multiple affordable business financing options available at attractive low-interest rates.
Step 4. Naming Your Business
Now you need to have an official name. You can use a business name generator to check some suggestions. Once you finalize, register it with the US trademark department so that no one else can have your name. Also get a domain immediately with the same name, preferably with a .com extension. Check this guide to know more about naming a business.
Step 5. Choosing A Business Structure
Now you need to form a business structure to register your business in South Dakota. You may also need to apply to the South Dakota Department of Licensing and Regulatory Affairs. You can choose between a sole proprietorship, partnership, corporation, an LLC. If you form an LLC, you can enjoy added legal benefits and extra tax reductions.
Step 6. Federal EIN & Tax Filing
Now apply for a Federal EIN at the IRS. This will allow applying for separate taxes. The Federal Employer Identification Number (FEIN) will act as your social security number and business tax ID. You may register your business with the South Dakota Department of Taxation and Finance as well.
Step 7. Business Permits & Licenses
The state has no mandatory local licenses specific applicable, but some of the cities in South Dakota need particular permits to be legally operational. In general, business in South Dakota needs a sales tax license to sell products. You may have to acquire special permits for specific businesses like recycling plastic.
Step 8. Business Bank Account & Accounting Software
Apply for a separate bank account with your EIN. This will facilitate all financial transactions to be at a single place and you can also have a credit account for vendors. Now you need to set up an accounting method with proper accounting software. It will help you to manage all your business transactions, making it easy to be taxed.
Step 9. Business Insurance
South Dakota has no mandatory business insurance applicable to businesses. But you may need to have professional liability insurance to sell services and worker’s compensation insurance to have an employee.
Step 10. Promoting Your Business
Finally, it’s time to promote your business. Marketing a new business is important. Taking your business to the potential audience is important. Hire an agency in the initial period for planned promotions and marketing.
Best Places To Start A Business In South Dakota
Choosing the right location is going to determine how your business runs. Here are some of the best places in South Dakota to start your business:
South Dakota offers a very steady market for new and small businesses. The economic environment remains favorable for businesses backed by friendly policies. Follow the steps to start a successful business in South Dakota from home with a nominal investment.