If you’re tired of being a part of the rat race and want to be able to dictate your financial destiny, then maybe it’s time for you to start your own business.
A business has the potential to make you a financially independent individual, and it can teach you a lot of things about life and industry. It can even teach you a lot about yourself.
With that said, if starting a business sound appealing to you right now, then this article is for you. Below are some essential steps you have to take first before you start a business. Read on to find out more about each step.
Determine viability
A lot of people who want to start a business might be too excited by the idea of being a business owner. They might be so excited that they forget to stop and think whether their business idea is profitable in the first place.
Before you start creating company logos and hiring staff members, take stock of your business idea first. Identify the capital you need to get everything started and how much money you need in everyday business operations.
Then, check the numbers to see if you would be able to profit for your services or products. You should make sure the money you get wouldn’t be money that you can only use to pay for overhead costs. Instead, it should be the actual profit.
Create a business plan
Once you’ve figured out if your business idea is viable or, if it’s not viable, you’ve found a way to make it viable, then it’s time to draft your first business plan. A business plan is a document that maps out a business’s future and its strategies.
With a business plan, not only will you have a way to center yourself and understand the core of your business, but it will also serve as a way for you to map out the future of your business. Also, a business plan can help attract investors and business partners if crafted well.
Find start-up funds
Once you’ve got a business plan and you’ve discerned the profitability of your business, then you should know by now how much it takes to get your business up and running. When you know how much you need, it’s now all a matter of where you’re going to get your funds.
You can try to look for business partners or connect with potential investors. Maybe you have some funds saved up, and you can get a business loan from your trusted bank or business loan provider.
Choose a business structure
A step that should be included in your business plan is your business structure. However, you can decide on it after you’ve figured out your funding plans as well.
Your business structure will dictate how your business will be run, how much it will cost to set up, and other legal issues. The more common types of business structure are sole proprietorship, corporation, and partnership.
The business structure dictates who has liability over the business as it takes on a legal identity all on its own.
Business license and permits
After figuring out your business structure, you can then start gathering the needed paperwork to make sure that you’re operating a legal business. Although it may seem like a bit of a hassle, it’s still crucial that you get the required licenses and permits before you operate.
On that note, the required business licenses and permits are different between each business type, and some may not even need to have licenses or permits. Make sure you check up on which ones you need through the right authorities for an accurate assessment.
Determine your business location
After you’ve got the proper licenses and permits, then it’s time to set up your headquarters. In fact, you have to start by asking yourself if you want to be a brick-and-mortar business or a digital business.
For your office space, if you’re only starting out, then you may need to decide if your budget can afford a separate office or if you want to set it up in your home.
Make sure you consider the space that office supplies will occupy when deciding about where you want to set up your office space.
Get business insurance
By this point in the process, you should be almost up and running. However, it is vital that you get business protection insurance first before anything.
Since you’re just a small business starting, you have the most to lose should you be struck by any burglaries, accidents, disasters, or much more.
There are already a lot of risks involved when you’re starting a new business, but always having preparations in place makes these risks less precarious for you.
Set up an accounting system
Money is the driving force of your business, so it makes sense that you should invest in the management of this part of the business. Once you’ve got everything set up, you should then have a bookkeeper or accountant.
You can be your bookkeeper if you’re short on cash, but if you don’t know much about accounting, then it’s best to hire someone else to do it.
It’s best for your business that you stay on top of your financial status. Otherwise, you might be operating under pretenses.
Build a team
You’re almost ready to go! All you need now is a team to help you navigate the rocky seas of business ownership.
Because you’re a start-up, the task of choosing your partners in building up the business is much more critical than it is for others.
You need people who are reliable and passionate about the business. Base your executive members on your business plan to stay right on point with your business goals.
Wrap up
There you have it! The nine essentials when you’re starting a business. With the steps mentioned above, you should have a solid foundation for starting your business with relative ease.
May you have the best of luck in every step of the way.
