How To Start a Business
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How To Start a Business

Guide to Starting a Business

1.Research & Create a Business Plan

2. Form Your Business

3. Explore Options for Financial Assistance

4. Choose Your Location

5. Site Selection and Approval

6. Construction & Permits

7. Inspections

8. Development Specialized Assistance

9. Operating and Growing Your Business

1. Research & Create a Business Plan

A business plan is a living document that will change over time as you and your business grow, develop new goals, and adapt to new business needs.

There are several benefits to having a business plan:

  • It helps keeps you accountable to your business goals – focusing on the bigger picture rather than just being reactive to day-to-day situations.
  • It helps you tell your business’ story – what your product or service does, why it matters, and how you plan to make it a success.
  • It’s almost always necessary when you’re seeking capital. Whether you’re seeking funds from bankers, loan officers, venture capitalists or other investors, these individuals will be interested in learning about how your business operates, its current financial state, how you are bringing in new customers, and how you’re looking to grow.

Business plan formats are just as unique as the many different businesses that create them, and there are different types of business plans depending on your goals.

For a lean business plan, the following sections are often required:

  • What problem are you trying to solve?
  • How does your product/service provide a solution to that problem?
  • Does an audience exist that also shares that problem? (Also known as customer discovery.)
  • What are the key metrics that prove that?
  • What is your product/service’s unique value proposition – how is it different from similar products or services that are already out there?
  • What is your business’ cost structure and revenue streams?
  • Who is your audience / what customer segments are you targeting?
  • What channels are you using to market your business?

For a more robust traditional business plan, the following sections are often required:

  • An executive summary that provides a brief overview of the fundamentals of your business.
  • A company overview that provides a general overview of your business and your industry, along with your plans and goals for the future.
  • A description of your products and services, and what makes them different than similar offerings.
  • An industry analysis that examines key trends in your industry, exploring how much customers in your area will pay for your product or service (also known as customer validation), who your competition is and how you stack up against them, and identifying your target market.
  • An operations plan that describes the daily operations of the business and what you need to make it happen (equipment, personnel, your location, etc.)
    Information about your business’ management team and organizational structure, including advisors, insurance agents, accountants, attorneys, etc.
  • A financial plan that looks at your business’ historical financial data, often looking back at your previous 12-month profit and loss statement, and looking ahead through a 12-month cash-flow projection and balance sheet.
    • Bankers and loan officers may want to see a longer period of historical financial data.
    • One of the key things they will focus on in this section is to understand how long it will take your business to become profitable, and how that compares to your business’ debt and other financial metrics.
  • A risk assessment and/or exit strategy is also helpful in assisting business owners as they plan for the unexpected.

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2. Form Your Business

To begin legally operating a business in Watauga, Texas, it’s important to make sure your business is legally structured correctly and that it is formally registered with the correct legal entities.

All businesses must adopt a legal configuration that defines the rights and liabilities of the business owners, as well as their scope of control, personal liability, the business’ life span, and its financial structure.

Because this decision will have long-term implications, it’s strongly recommended that you consult with a lawyer or a tax specialist to determine which form of ownership is right for you.

You’ll also want to take the following into consideration before coming to your decision:

  • What is your vision for the size and nature of your business?
  • What level of control do you want to have over your business?
  • How vulnerable is your business to lawsuits?
  • What are the tax implications of your chosen organizational structure?
  • What is your expected profit (or loss) for the business?
  • Will you be re-investing any earnings back into the business?
  • Will you need to access cash out of the business for yourself?

To learn more about different legal structures for your business, visit the Texas Secretary of State website.

* This section is not intended to be a replacement for sound legal or tax advice. It is strongly suggested that you consult with your lawyer or tax specialist to ensure that your business structure works best for your business needs.

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  • An accountant or banker
  • An attorney

A general business license is not required in Texas. However, all entities that transact business in Texas are required to register with the Texas Secretary of State or county clerk’s office. The certificate of formation received from the Secretary of State’s Office or the assumed name certificate provided by Tarrant County satisfies the “general business license” requirement that exists within other states.

Additionally, all businesses should register for an Employer Identification Number (EIN) through the U.S. Internal Revenue Service.

Register with Tarrant County

While a general business license is not required in Texas, sole proprietorships and partnerships operating in Watauga need to register and file their business name – also known as a DBA (“doing business as”) or assumed name – with Tarrant County. 

Apply online on the Tarrant County website

Register with the Secretary of State

Businesses who decide to incorporate – become a corporation, a limited liability company (LLC), or a limited partnership – must file a certificate of formation with the Texas Secretary of State.

Likewise, businesses in Texas who form a limited liability partnership must register with the Texas Secretary of State.

The Secretary of State provides a form that meets minimum state law requirements for each business structure, and a certificate of formation can be filed online through SOSDirect.

Register for an Employer Identification Number (EIN)

An Employer Identification Number (EIN or FEIN) must be obtained from the U.S. Internal Revenue Service by employers with employees, or who are part of business partnerships or corporations. Registering for an EIN is free.

  • Even if you’re a sole proprietor without employees, an EIN may be required for government forms or to open bank accounts, so it’s strongly recommended that you get one.
  • If you’re a sole proprietor, EINs can also be used instead of your personal social security number to protect against identity theft.
Apply online for an Employer Identification Number (EIN)

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Depending on your type of business, the State of Texas or other governing entities may require additional license or business registration paperwork to be completed.

The Texas Business Licenses & Permits Guide offers a comprehensive listing of state permits and licenses required for operating a business in Texas.

View the Texas Business Licenses & Permits Guide

For more information or additional assistance, please contact the Texas Economic Development & Tourism’s Business Permit Office.

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3. Explore Options for Financial Assistance

There are a few different paths that entrepreneurs can pursue when seeking funding to assist with getting their business off the ground:

Personal investment or personal savings are one option for business owners who wish to fund their initial business costs themselves. This can also include crowdfunding, or raising money from friends and family.

Financing a business on credit usually involves a business loan from a bank or another financial institution, like a credit union. Each organization will have different requirements for their loan terms, and the credit history of the business owner may be a factor in loan eligibility.

Community development financial institutions (CDFIs)

Community development financial institutions (CDFIs) are private financial institutions that are focused on benefitting low-income, low-wealth, and under-resourced communities and places. Different CDFIs have different requirements to receive funding, but several benefits to using CDFI loans is that it’s typically more flexible than funding offered by conventional financing institutions and can likewise be more flexible when it comes to an individual or business’ credit history.

Federal Loans

Federal loans are available through the U.S. Small Business Administration.

Grants

Grants are occasionally available to help support your business, which can be specific to your business’ industry, size, or the community it serves.

 

Angel investors are usually high net-worth individuals who invest their own funds into early-stage startups, ranging anywhere from tens of thousands to millions of dollars. Businesses seeking investment from Angels should expect to undergo a due diligence process, particularly on their financials and other key information, which will be relevant to their potential investors.

Angel investors will often come together to form angel networks, which allow them to combine their collective funds, experience, or influence to make better investments.

  • North Texas Angel Network is a Dallas-based angel network that supports early-stage companies throughout the region and provides entrepreneurs with access to capital and investor expertise.

Venture capital (VC) is typically only accessible to companies who have demonstrated solid sales and needs a large amount of capital to scale quickly.

Venture capital firms manage funds comprised of other peoples’ money, which allows them to make larger investments than angels. However, they often receive some equity ownership of the company – plus royalties or other payouts based on the revenue the business generates – in exchange for their funding.

Expectations for financial returns are also often higher than for angel investors.

  • RevTech Ventures is a Dallas-based early-stage venture capital firm that invests in retail technology.
  • Venture Dallas is dedicated to growing the innovation ecosystem in Dallas-Fort Worth, connecting startup investors with high-growth companies, and building collaboration among the venture capital and investment community.

Private equity is a kind of funding that is typically available for older, more mature companies, coming through special firms and funds or high net worth individuals.

Compared to venture capital firms, private equity funders typically have a broader portfolio and focus on less risky, more mature companies.

Be advised that almost all of these options will require some sort of financial documentation or history of good credit (or both) before providing you with funding. This is why you should do your homework, craft a solid business plan, and seek guidance if needed to put your best foot forward.

Also, visit the Sparkyard blog to learn more about their Capital Growth Circuit, which can help entrepreneurs work thorough their access to funding at any stage.

Helpful Resoures and Assistance

Several organizations are available in Watauga and throughout Tarrant County if you need assistance preparing your business to apply for funding.

4. Choose Your Location

Having a business is all about location, location, location!

Watauga offers several different incentives that would benefit developers, small businesses and investors interested in driving change in the city’s reinvestment zones.

Catalytic development incentives

Catalytic development incentives are for projects that will drive new development and fill gaps in the local economy of these target corridors. Projects must commit to at least $5 million in investment, and fall under at least one of the following categories:

  • The project is a mixed-use development.
  • The project meets a gap in the community. (Ex. A grocery store in a food desert.)
  • The project is located along a commercial corridor or within an urban village.
  • The project generates significant job opportunities in the area.
  • The project helps create a hub of entrepreneurial activity that attracts additional entrepreneurs and high-growth companies.

Historic Preservation

The City of Watauga recognizes the historical significance of the community and maintains information about Watauga’s history and historic sites. For information about current historic preservation requirements, property improvements, or applicable development regulations, contact the City’s Planning and Zoning or Development Services staff.

Façade improvement grants 

The Watauga Commercial Improvement Program (WCIP) provides incentives to encourage improvements to commercial properties in Watauga. The City may provide matching funds for eligible improvements to help enhance the appearance and condition of existing commercial properties

Economic Development Incentives

The Watauga Economic Development Corporation (WEDC) offers economic development incentives to support businesses seeking to locate or expand in Watauga. Eligible projects may receive incentives for economic development purposes, including grants, loans, infrastructure, and other improvements authorized under state law. Incentive requests are subject to the City’s guidelines, application process, and approval by City Council.

  • Incentives may include economic development grants, loans, infrastructure improvements, sales tax rebates, property tax rebates, and development fee rebates.
  • Businesses seeking incentives must submit an application and go through the City’s economic development review and approval process.

Additional development tools

  • Designated Investment Zones include areas targeted for economic development and revitalization. The City of Watauga uses economic development incentives and other planning tools to encourage new development, redevelopment, and business growth.
  • Watauga Commercial Improvement Program (WCIP) provides resources to support improvements to commercial properties and business facilities in Watauga. The City also provides economic development incentives for qualifying new and expanding businesses.
  • Economic Development Incentives are available for qualifying businesses and projects in Watauga. Incentives may include sales tax rebates, property tax rebates, development fee rebates, and financial assistance through loans and grants. City Council-approved guidelines and criteria apply to all economic development incentives.
  • Opportunity Zones are an economic development tool identified in Watauga’s development planning resources. The City has evaluated the potential use of Opportunity Zones as part of its economic development strategy.
  • Public Improvement Districts (PIDs) are identified in Watauga’s development strategy as a potential tool for financing improvements and maintenance within a defined area through property-owner assessments. These improvements can support beautification, infrastructure, and other community enhancements.
  • Tax Increment Reinvestment Zones (TIRZs) are identified as a potential economic development tool for Watauga. TIRZs can use increased property tax revenue resulting from new development or redevelopment to help fund public improvements within a designated area.
  • Rent Subsidy Grant Program is identified in Watauga’s development strategy as a potential tool to encourage commercial investment by helping new businesses occupy previously vacant commercial buildings. The proposed program could provide matching grant funds for rent subsidies for qualifying businesses.
  • Watauga Revitalization Action Plan (WRAP) is an incentive program designed to support local businesses with revitalization improvements and strengthen existing commercial areas.
  • Transportation Impact Fees are part of the City’s development resources and requirements for applicable projects. Businesses and developers should review current City requirements when planning new development or improvements.
  • Development Services provides planning and zoning, development review, building permits, inspections, Certificate of Occupancy information, and other services related to residential and commercial development in Watauga
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If none of these options apply to your business, but you’re still interested in exploring economic development opportunities in Watauga, contact the Watauga Economic Development Corporation (WEDC) at 817-514-5725 to see if other options are available.

Zoning

The City of Watauga promotes orderly growth and land use while protecting existing property owners by grouping together compatible development through zoning. Make sure your project is allowed according to the applicable zoning district by utilizing the City’s Development Services resources, including the Watauga Zoning Map.

Certificate of Occupancy (CO)

Any building or structure in Watauga that requires a Certificate of Occupancy must receive approval before it may be occupied or used. The City of Watauga requires a Certificate of Occupancy for applicable buildings and structures following completion and approval of required inspections. A Certificate of Occupancy confirms that the building or space has met applicable City requirements and may be occupied for its approved use. Additional requirements may apply depending on the type of building, use, or project.

Americans with Disabilities Act (ADA) Compliance

The Elimination of Architectural Barriers law is meant to ensure that buildings and facilities constructed or altered in Texas are accessible and functional for all persons with disabilities. The statute requires compliance with the Texas Accessibility Standards (TAS). The Elimination of Architectural Barriers law is meant to ensure that buildings and facilities constructed or altered in Texas are accessible and functional for all persons with disabilities. 

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Pre-Development Conferences (PDC)

Pre-development review meetings with City staff are available for applicants to learn more about City development policies and procedures and to address site-specific issues.

These meetings are intended as a “discovery” type meeting to help applicants and City staff review proposed development ideas, identify potential issues, and understand how a project will interface with current development, City goals, objectives, and regulations. The meetings can also help applicants better understand the development review process.

  • To Schedule a Pre-Development Review Meeting:
  1. Contact the City of Watauga Development Services Department to discuss your proposed project and determine the appropriate next steps.
  2. Development Services can be reached at 817-514-5840 or 817-514-5827, Monday through Friday, 7:00 AM–4:00 PM.

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5. Site Selection and Approval

Information for those interested in land development, zoning, platting, and infrastructure design.

Zoning

The City of Watauga promotes orderly and efficient development through zoning and land-use regulations while working to ensure that new development is compatible with existing land uses and enhances the overall quality of life. Watauga’s zoning regulations are administered through the City’s One Watauga Comprehensive Master Plan and Zoning Ordinance.

The City’s planning and zoning regulations are designed to:

  • Ensure future development is orderly, efficient, and compatible with existing land uses
  • Provide opportunities for housing, local commerce, mixed-use development, and recreational uses
  • Support quality non-residential development that enhances Watauga’s visual appearance
  • Improve transportation and pedestrian circulation
  • Maintain and enhance the overall quality of life for residents and visitors
  • Support the City’s long-term development pattern and community goals

View the City of Watauga Zoning Map and One Watauga Comprehensive Master Plan.

Certificate of Occupancy (CO)

Any building used or occupied in Watauga must have a Certificate of Occupancy. The Watauga Administrative Building Code states that no building or structure shall be used or occupied, and no change in the existing occupancy classification of a building or structure or portion thereof shall be made, until the building official has issued a certificate of occupancy. In Watauga, one and two-family dwellings and townhouses are regulated by the International Residential Code and community homes, as defined by the zoning ordinance, are exempted from this requirement and do not receive certificates of occupancy.

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City of Watauga Development Services

This role includes engineering and building plan review, development review, permitting, and field inspections to ensure that plans and projects submitted to the City meet applicable City specifications and requirements. Development Services also works with contractors and developers throughout the development and permitting process.

Platting

A plat is a map of a piece of land identifying the location and boundaries of street rights of way, individual lots or parcels and other site information.

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6. Construction & Permits

Permits are the means by which the City of Watauga regulates construction. There are several different types of permits, based on the type of construction: building, plumbing, mechanical, and electrical.

Develop

Building plans are graphical representations of a proposed building or project and may include site plans, foundation plans, floor plans, building elevations, and other construction details. Anyone constructing a new building, adding to an existing building, remodeling, or changing the use or occupancy of an existing building or space may need to submit plans for review. The City of Watauga’s Development Services coordinates plat and plan review to ensure proposed projects comply with City ordinances, building regulations, and applicable state and federal standards. Learn more about Watauga Development Services

Design

The City of Watauga recommends working with qualified architects, engineers, and other design professionals as needed to prepare plans that meet applicable requirements for your project.

Submit

Once plans are complete, submit the required applications and documents through the City of Watauga’s online permitting portal, MyGov5. Applications may also be submitted in person at the City of Watauga Public Works Department. Submit permits through MyGov5

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Commercial Permitting

New commercial construction, commercial accessory buildings, remodels, additions, alterations, and repairs may require building and separate trade permits. The City of Watauga requires separate permits for electrical, plumbing, heating, ventilating, and air conditioning work. Additional requirements may apply depending on the property’s zoning, proposed use, and the scope of the project. Proper zoning is required for a Certificate of Occupancy, and platting may also be required.

Permits may be required for construction or work involving structural, electrical, mechanical, plumbing, or other regulated improvements. Contact the City of Watauga Public Works Department for information about the permits and requirements that apply to your project.

For information about the permits required for your project, contact the City of Watauga Public Works Department at 817-514-5806.

To apply for a permit, use the City of Watauga’s online permitting portal, MyGov5. Applications may also be submitted in person at the City of Watauga Public Works Department, 7800 Virgil Anthony Blvd., Watauga, TX 76148.

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7. Inspections


An inspection is required for all construction or work for which a permit is required and shall be subject to inspection by the building official and all such construction or work shall remain accessible and exposed for inspection purposes until approved by the building official. Inspections related to the Water and Fire Departments are also required on an annual basis – see our Annual Inspection Compliance Guide under the Fire Inspection and Issuing a Certificate of Occupancy tabs below.

 

The Bureau of Fire Prevention is tasked with overseeing Fire Code compliance to promote fire safety and has adopted the 2024 International Fire Code with local amendments.

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City of Watauga Consumer Health

Consumer Health provides environmental health services for the City of Watauga, including inspections of food establishments and public swimming pools. Food safety education and training are also provided to help food handlers and businesses maintain safe practices and comply with applicable health regulations.

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City of Watauga Inspections

Inspections are necessary to help protect the health, safety, and welfare of building owners, occupants, and the community.

Inspections are required for construction or work for which a permit is required and shall be subject to inspection by the City of Watauga. All such construction or work shall remain accessible and exposed for inspection purposes until the required inspection has been completed and approved.

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Certificate of Occupancy (CO)

Any building or space in Watauga requiring a Certificate of Occupancy must receive approval before it can be occupied or opened to the public. Before a Certificate of Occupancy can be issued, the building must pass the required inspections, including Building Inspector and Fire Marshal inspections. Proper zoning is also required, and platting may be required depending on the property.

Do not open to the public until you have received your permanent Certificate of Occupancy. The City provides the Certificate of Occupancy after the required inspections and approvals have been completed.

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8. Development Specialized Assistance

Need one-on-one help, or do you need assistance on a large project? The Development Services Department has a few resources for you.

Utilize the Walk-In Permitting Team

Certain small building project and occupancy permits can be done on the same day of application with express assistance of the Walk-In Permit Team.  This program is for occupancy and remodel projects in existing buildings that are below 6000 square feet. 

Qualification criteria and instructions on using the walk-in permit team are below:

Do I Qualify for Express Assistance?

Remodel existing tenant space under 6,000 sq. feet.

 I already have a Certificate of Occupancy for this business, I am just making changes to walls or mechanical, electrical or plumbing systems.

  • Game rooms, smoke shops, sexually oriented businesses, and hazardous occupancies will not qualify.

Moving into new tenant space under 6,000 sq. feet, no change of use and no remodeling – I just need a CO.

I need to apply for an Occupancy Existing Ordinance permit (PO). 

  • Game rooms, smoke shops, sexually oriented businesses, and hazardous occupancies will not qualify.

Moving into new tenant space under 6,000 sq. feet, with a change of use.

I need to apply for an Occupancy Change of Use permit (PO).

  • Game rooms, smoke shops, sexually oriented businesses, and hazardous occupancies will not qualify.

I Qualify, Now What?

Remodel

STEP 1: Review the City of Watauga Building Permit Application to determine the information and documentation required for your project.

STEP 2: Complete the appropriate permit application and submit all required documents, plans, and supporting information through MyGov5. Separate permits are required for electrical, plumbing, heating, ventilating, and air conditioning work. 

STEP 3: Applications may be submitted online or in person at the City of Watauga Public Works Department, located at 7800 Virgil Anthony Blvd., Watauga, TX 76148. The department is open Monday through Friday, 7:00 a.m. to 4:00 p.m., excluding lunch from 11:00 a.m. to 12:00 p.m. 

Occupancy Existing Ordinance Permit

STEP 1: Complete the City of Watauga Certificate of Occupancy Application.

STEP 2: Submit the required application and supporting information to the City of Watauga. Proper zoning is required to receive a Certificate of Occupancy, and platting may also be required. 

STEP 3: Schedule the required Certificate of Occupancy inspections with the City. Do not open to the public until the permanent Certificate of Occupancy has been received. 

Occupancy Change of Use

STEP 1: Contact Watauga Planning and Zoning to determine the applications and approvals required for your proposed change of use.

STEP 2: Submit the required applications and supporting documents through MyGov5 or to the City of Watauga Public Works Department. (Watauga TX)

STEP 3: Complete all required inspections and approvals before occupying or opening the space under the new use. A Certificate of Occupancy is required before the building or space can be opened to the public. (Watauga TX)

I Don’t Qualify, What Can I Do?

Don’t qualify for Express Permitting?

Be sure to check out our other permitting options here.

Schedule a Consultation with Development Services

The City of Watauga recognizes that understanding and complying with development requirements and regulations can sometimes be challenging. Development Services offers pre-development review meetings with property owners and developers to discuss proposed projects, review development ideas, and provide guidance on how a project will work with current development requirements and City regulations.

To discuss your project, contact Watauga Development Services at 817-514-5840 or 817-514-5827. Development Services is located at 7800 Virgil Anthony Blvd., Watauga, TX 76148.

Small Business Liaison Service

Whether you are a new business or an established business, the City of Watauga is committed to helping local businesses navigate the development and permitting process.

Watauga Development Services provides pre-development review meetings and permitting assistance to help business owners and developers understand applicable zoning, building requirements, permits, inspections, and other development requirements.

For assistance with your project, contact Watauga Development Services at 817-514-5840 or 817-514-5827.

Need Additional Plan Review Assistance?

If your project is larger or more complex, the City of Watauga’s Development Services Department can help coordinate the development review process. Development Services coordinates plat and plan reviews, zoning, permitting, and inspections to help ensure proposed projects comply with City requirements.

Contact Development Services at 817-514-5840 or 817-514-5827 to discuss your project and determine the appropriate review process.

9. Operating and Growing Your Business

Congratulations, your business is officially open in Watauga! Local resources and support are available as you get established, connect with the community, and begin planning for future growth or expansion.

If you hire employees for your business, you will be responsible for additional employment insurance and worker’s compensation insurance. This means you’ll need to apply for federal and state withholding numbers.

No matter what stage your business is in, there are local resources available to meet you where you are and provide feedback and mentorship that will help you set your business up for long-term success.

Start With Local Resources

The City of Watauga is committed to supporting local businesses and helping entrepreneurs navigate the process of starting, operating, and growing a business. Whether you are developing a new business idea, preparing to open, or looking to expand an existing business, local and regional resources are available to provide information, guidance, and connections.

Start with the City of Watauga to learn more about business requirements, permitting, development, and available resources. Additional business resources and support organizations will be listed below.

Other Business Coaching

A business coach or advisor can be helpful at any stage of your business journey. Personalized guidance can help business owners identify challenges, explore solutions, develop strategies, and make informed decisions as their business grows.

The following resources are available to businesses in Watauga and the surrounding area:

Small Business Networking

Connecting with other business owners can help you build relationships, share ideas, and become more involved in the local business community. Watauga businesses have access to networking opportunities through local and regional organizations, including the Northeast Tarrant Chamber of Commerce.

As you start and grow your small business in Watauga, remember that you are not alone. The City of Watauga and the Watauga Economic Development Corporation provide resources and support to help new and existing businesses navigate development, permitting, business growth, and other needs throughout their journey.

Incubators

Incubators are typically designed to support businesses in the early stages of development. They can provide entrepreneurs with guidance, educational resources, mentorship, and connections to help develop a business idea and establish a strong foundation for growth.

Businesses in Watauga can also connect with regional organizations that provide support and guidance for entrepreneurs and small businesses:

Accelerators

Accelerators are designed for businesses that have an established idea or business model and are ready to focus on growth. These programs can provide mentorship, education, industry connections, and other resources to help entrepreneurs strengthen their business and prepare for expansion.

Businesses in Watauga can explore regional organizations and programs that provide guidance and support for businesses looking to grow:

Helpful Resoures and Assistance

Several organizations are available to help Watauga businesses with starting, operating, and growing their business. These resources provide business guidance, mentoring, training, development assistance, and connections to additional programs and services.

Helpful resources and assistance

Several organizations are available in Watauga and throughout Northeast Tarrant County if you need assistance growing your business.

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