5 Things To Consider When Starting Up Your First Business

Starting-First-Business

Harriet Hunter, Negosentro |  If you’re looking to start up a business, there are numerous factors which you will need to take into consideration prior to setting up the brand. It is highly likely that you will spend countless hours researching, discussing aspects with lawyers, arranging meetings with other entrepreneurs, and undertaking extensive market research prior to even considering your business plan. Nevertheless, there are five very important steps which you must consider in order to ensure that your start-up runs as smoothly as possible.

Regulations, Laws, Licenses & Insurance

This is one of the most important aspects for any business, and understanding which regulations, licenses and taxes you will need to follow will help to ensure that your business doesn’t end up in trouble later down the line. Once you have carried out your own initial research, it is important to consult a solicitor in order to accurately understand the structure of the business you are putting together. In addition to this, you may need to obtain some form of specialist insurance.

For example, if you are setting up a cleaning business, then you will want to ensure that you obtain the most appropriate cleaner insurance, to cover your business in the event of a public injury, employee claim, or the spillage of certain chemicals which may cause damage to the property you are working on. There are many reasons as to why you should undertake extensive research into the regulations and laws in the business market which you are looking to set up in, but most importantly, you will be able to rest easy knowing that your business has some form of protection.

Trademark Your Name

If you forget to trademark your business name, then you may find that your fledgling business may be at risk. The time that you may invest in establishing your business and your brand may be thrown away quite quickly if someone else is able to trademark the name prior to you being able to obtain it. Make sure that you do a trademark search, then ensure that you own the name of your business prior to any marketing efforts, so you do not have to worry about an eventual rebrand situation.  

Your Own Personal Requirements

Understanding your own personal requirements, long before you start putting together a business plan, is imperative. How much do you need in order to live comfortably? Many business owners will invest a lot of money into their business, but can find themselves struggling to pay their own rent and bills in the first few months of the business starting up. Ensure that you are covered for any unforeseen circumstances and ensure that you are able to survive yourself prior to setting up your business. Speak to an accountant in order to help you create an appropriate budget, so you know exactly what you can and can’t spend for your business at all times.

Budgeting

Talking of budgets, ensuring that you have one in place for your business particularly when setting up will help to ensure that you are not overspending on areas which you don’t need to. There are many reasons why you may want to invest in the latest technology, but as a start-up, you need to seriously consider the benefits and drawbacks of each financial decision that you make, long before you make it. It is also imperative that you don’t undervalue your brand. Many businesses fall into the trap of heavily discounting their prices in order to win new business, but this can have a major impact on your business’ future. Finding the right balance, and sticking to your budget at all times, will help your business to maintain financial stability.

Be Wary When It Comes to Hiring Friends & Family

While the idea of working with your own friends and family may seem like a lot of fun, the stress that normally accompanies the start-up of a business can lead to fractured relationships if your friends and family become your employees. If you are hiring close acquaintances, it is important that you are ruthless in the event of them underperforming. Generally, it is best to steer clear from hiring friends and family, unless absolutely necessary.

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