Many entrepreneurs believe the strength of their idea, their passion and their funding are enough for their business to reach staggering levels of success. Unfortunately, planning is just as critical, if not more important. Business success depends on the initial foundation, so let’s look at how you can set up your business correctly from day one.
1. Understand yourself and the idea
You first need to be clear on the business idea and your ability to see it through to fruition. While you may have a business idea that will conquer a large and untapped market segment, you may not have the skills and other qualities necessary to lead the way. Therefore, your talents need to first align with the business idea.
2. Write a business plan
A business plan helps you assess the viability of your business idea. It highlights the different departments you need in your operations and identifies potential challenges to your success. It also projects your profits and losses and outlines the amount of funding necessary for execution. Lastly, it summarises the business sections, processes, and phases, complete with timelines for specific milestones.
3. Identify sources of funding
Adequate funding is crucial to setting your business up for success. Remember, it takes an average of three to four years before a business is rated profitable. While you’ll make some profits before, you will reinvest in expansion, stabilisation, and other processes. You can get funding from several sources including:
• Personal funds
• Banks
• Friends and family
• Venture capitalists
• Angel investors
• Government grants
• Business partners
4. Define your business structure
You need to determine whether you’ll be a sole proprietor, a limited liability company, a partnership, or a corporation. Having a clear understanding of these legal definitions is crucial because it affects operations and prevents future liabilities.
5. Register the business with appropriate authorities
To avoid problems with the law, you must register your business with the appropriate authorities. For example, you need to get the right tax certificates, adhere to health and safety protocols, and get an official name and address for the business. Find out what tax payments and other council fees you need to pay and what options are available.
6. Gather the best team
Employees are the backbone of every company. The people you employ determine the success of the business, so it’s crucial that you attract the best talent. To do this you need to create a compelling employee value proposition. Additionally, you need to invest focus on retaining the best talent long term.
Conclusion
These steps will help you start and run your business successfully. Proceeding without factoring in these steps will either lead to failure, or financial, legal and even administration troubles. See more information on setting up a business from Zest Benefits here.
