If you are considering starting a business or are already in the set up phase there are several things you need to take note of before you launch. Running a company is a completely different ball game than being employed by a company so make sure you are well prepared before diving in head first. In this article, Bizinsure have put together the top five things they consider to be essential before starting a business venture.
Write a Business Plan
Taking the time to put together a business plan is essential. When you put everything on paper it helps you to see your full strategy outline. This should ensure you don’t miss anything or leave any grey areas and should give you a clear structure to follow. Your plan should include all the details of your product, your service, your competitors, how you plan to operate your business, details of marketing, a plan on how many staff you will take on, and your projections financially for the next 3-5 years.
Financing Your Venture
Next, you need to figure out how you will fund your new business. Do you plan to do this yourself with savings or credit cards? Or will you be looking at getting a bank loan, government grant, or investment? Focusing on financing your venture will help you to be realistic on what needs to be spent on setting up and how long it will take before your business starts to profit.
If you have always worked a 9-5 job, then starting a business can be a shock to the system. You will need to be 110% committed to your new role as you will have to depend on yourself to drive your income. Have a think about your life currently and how much time, drive, and finance you can personally commit to your business. One of the best things about running your own company is being able to set your own working hours but make sure you can commit enough time to get things set up and flowing.
Wherever you are located you will need to make sure you understand the legal set up required for your business. There are several different structures your company can be set up as and you will need a basic understanding of the pros and cons of each one. You will also need to make yourself aware of the tax laws in your local area to avoid any penalties in the future.
One of the biggest issues when opening a business is having the correct insurance plan. Having insurance for your company helps to protect you from any unexpected problems in the future. General Liability Insurance is essential to prevent you from any property damages or people injuring themselves while working for you. You may also need to consider Professional Liability Insurance or E&O Insurance to protect you from property damage, and customer complaints. If you are operating online, Cyber Insurance can be beneficial to protect customer’s personal details. If you own a property then insuring your equipment and tools should also be on your list. Make sure you know which plan suits your business model.
Starting a business is a big undertaking, but by taking the time to make the above considerations, you should find it runs a lot more smoothly.