7 Tips for Starting a New Business
Starting a successful business takes time, money, patience, determination and a healthy dose of luck. Getting off to a good start means being prepared for any number of challenges. If you are a small business owner or are planning to start a new business, these 7 Tips for Starting a New Business may help put you on the path to success.
1. Business Plan – Every business should start with a well crafted business plan. Your plan should cover basic topics such as your company’s goals, management structure, services/products, target clients and marketing strategies. A business plan provides internal guidance and increases external confidence in your business, making it more likely to secure funding.
2. Insurance – There are many different types of coverage you should consider, from general business liability insurance to business errors and omissions insurance for directors and officers. Depending on the number of employees and state or provincial laws governing your business, you may be required to purchase workers’ compensation insurance. You may also need to pay unemployment insurance. Talk to an experienced insurance agent and become familiar with best practices and the regulations that govern your industry.
3. Business Entity Formation – There may be significant benefits to forming a limited liability company (“LLC”) or corporation. These types of entities may benefit you in regard to personal liability, taxation and protection of personal assets. Consult with an attorney or CPA to determine which business entity, if any, will be most beneficial to your business.
4. Permits & Licenses – Before you begin operating a business, check with your state or provincial regulatory agencies to ensure that you have the authority to proceed. Certain businesses require special licensing or certification.
5. Intellectual Property (IP) – IP laws can be incredibly complex, but they should not be ignored. Make sure you understand what can be done to protect your IP. Call an experienced attorney.
6. Advisers – Consult with attorneys, accountants and business people that have experience in your industry. Surrounding yourself with advisers who are knowledgeable will help you get off to the best possible start.
7. Commitment – Your business will only be successful if you commit to it completely. Understand that there may be setbacks and challenges along the way but learning from and moving past those difficulties will make you and your business stronger.