When people are planning to start their own company they think only how great it will be to be their own bosses. They think that they will take the market by storm and they will achieve success in less than a year. If you plan to run your own start-up, you should pay attention to some factors because they can easily put your business at risk. Young entrepreneurs have the tendency to bite off more than they can chew. If you want to avoid failure and risks, you should make sure that you clearly understand what you are getting into.
Here are the most important practices you should focus on when starting a business.
1. Have a well-established back-up plan
All entrepreneurs should have a back-up plan for their company. You should ask yourself what options you have if something will not go the right way. How will you be able to cover your bills if you will not be able to grow your business? A great solution is to have another job while you grow your new company. Think ahead all the scenarios and financial aspects because hoping for the best is not enough. Having a back-up plan brings you peace of mind.
Many people state that having a plan B means that you are not fully committed to your company, but financial experts disagree with this statement because your backup plan is the one that protects you, your family, and your business. Creating a plan B requires the same attention as planning for your start-up. You need to determine the numbers, time and effort you will have to put in the backup plan in order for it to work.
2. Finding the perfect location
Establishing the location of the business is a practice often overlooked by young entrepreneurs. The company’s location has a great impact on its success, it determines its visibility to audiences, it facilitates advertising and it attracts partners. Do not ignore this step, when creating the business plan you should decide if you want the start-up to have a physical location or it will be based online. If you need a physical location, it is advisable to know from the beginning the space you need and to identify the area where it will be located.
According to your budget, you will either lease or buy the location. Check if your competitors have their headquarters in the same area and if your building is visible from the street. In case you will want to expand the space in the future, you should check if the location offers you the possibility to add to the existing building.
3. Understand the health and safety procedures
Health and safety regulations are essential for the well-being of employees and employer. Your job as the employer is to keep your employees safe from the hazards they are exposed to at the workplace. The Safety and Health Administration will check if you follow or violate the health and safety regulations and can have your business shut down if you do not respect the procedures.
On the other hand, employee claims can also break your business. Even if the employees will not file a lawsuit, paying for their illnesses or injuries they experience while working can have a negative effect on your finances. If you follow the health and safety procedures in the workplace, and you train your employees and educate them on how to follow the regulations you protect yourself from a lawsuit. Nowadays when an employee experiences a work-related injury, they immediately hire an experienced slip and fall lawyer if their employer does not promote health and safety procedures in the workplace. Besides understanding and following the health and safety procedures, you should also have compensation insurance to cover the expenses for the workplace illnesses and injuries your employees may experience.
4. Get the requires licenses and permits
Depending on the type of start-up you plan to run, the licenses and permits will vary. However, all companies need to be set under the form of business entities and to get a license. In case you get a loan to start your business, you will need to complete certain paperwork and to establish the fees you will have to pay. Additionally, some companies need to get patents or trademarks for their products.
According to the region where you will set up the business you may also need to pay membership dues to certain membership organisations, like the chamber of commerce. The specifics of the business will influence the sum of money you will have to pay to be in order with the local issues. Certain start-ups have to pay large sums of money to become members of their local professional organisations. Some fees are paid only when starting the company while others are paid annually.
5. Market the business
Before making the business plan, you should conduct market research to understand if the type of business you plan to start is needed in your area. If there are many other businesses that have the same specific as yours then you will have to ask yourself if you bring something unique that will help your start-up stand out. Can you bring on the market unique products your competition does not offer? Can you offer competitive prices and still earn income? If the answer is affirmative to these questions then you have great chances to be successful.
When it comes to marketing, identifying the things that make your business unique will not protect you from failure. You need to attract an audience, to convince the clients who are presently purchasing from your competitors that you can offer them extra advantages. Understand what social media channels your possible clients are using and create marketing campaigns that target them. Conduct market research and analysis to identify your clients’ needs and expectations.
Running your own business is a wonderful dream. But in order for the dream to come true, it is essential to not overlook the above practices because they influence your brand’s success.