Every single day millions of people get out of bed and dream, even with their eyes open, about starting a business. Some want to stay small, sell their handcrafted products and finally achieve the financial independence they want by doing what they love. Some of them want to be the owners of multiple building offices in the best places in town. And a few others probably want to be the next Bill Gates and have millions in their bank accounts. No matter how big or small you desire your company to be, first you have to start. Get to know where and how to start and then what you can do to protect your new company from any inconvenience. Here are a some tips that will help you take that small business dream in your hands and make it a successful reality.
First things first
The first thing you need to take into consideration is that being your boss it’s going to be hard, and a little scary at the beginning. The risks of being the owner of a small business may seem a lot to handle but don’t also forget the chances of success. Don’t let these evil thoughts cloud your mind, instead be prepared for them and fight them with reasonable arguments.
Jack Welch, ex CEO of General Electric said that “Good business leaders create a vision, articulate the vision, passionately own the vision and relentlessly drive it to completion.” The difference between you and a consolidated businessman is that they took their fears and excuses, threw them out the window and got in the path to reach their goals. We know it’s not easy, but you have to start somewhere, and the best place to start is within yourself.
You have to keep it simple; no one knows more about your business than you. Learn everything you can about other companies and the market, learn from your and others mistakes and start shaping the idea of your company on your mind, keep notes and develop a plan, trace it step by step and follow it. When developing your plan you need to identify the type of business to establish such as an LLC. There are many benefits for small businesses to operate as an LLC and a simple setup with the operating agreement. Review this document carefully so that your business is setup correctly and you stay protected. Soon you will be able to throw those fears away and begin your transformation from an employee to a business owner.
Be confident but also be prepared.
After you have your business idea and plan well designed you have to take into consideration the costs of making your business a tangible reality.
Make a business budget to keep track of the expenses necessary to start and operate. You have to keep in mind the costs for the rent of the building, marketing, employees if you need them, equipment, supplies and more. After you have the figure, you will need to get your business going, multiply that amount by four. It’s better to have some extra money available when the bills start to roll, and it’s better to be covered beforehand for anything that may come up.
Don’t forget to include a personal budget for your expenses: food, mortgage, bills, gas, etc. And most important of all, be prepared for a rainy day. No one wants to think about bad scenarios, but you can never be too prepared for any situation. We recommend that you don’t quit your everyday job until you have your small business well established and generating income. Generating revenue will take some time, but you’ll get there. Patience is vital in the journey of becoming a full-time business owner.
Take the hand of lady law.
You should do your research beforehand to know the rules you have to follow to become a business owner and which laws apply in your industry and state. Sometimes new small owners forget to take into consideration the legal requirements they need to start a company and the insurance coverage they will need in case of a lawsuit.
As your new business establishes you will notice that first, you’ll need to find out if you need to register your small business. In some cases, you could skip this step because some types of small business don’t need a registration at all. For example, if you’re using your legal name instead of a trade name. Soon you will have to address the complex field of getting your business license or the permits necessary to operate legally in the industry you chose. Also, you should take care of corporate taxes, accountability and follow the laws of employers when you hire your staff.
After you complete the previous steps, you should begin with the research for the insurance your new company will need. It’s a good idea to get the “mother” of all business insurance: a General Liability Policy. This insurance will cover you, your employees and customers from small accidents and incidents that may occur in or outside your business property. Also, a Property Insurance is a good idea if you want to protect your physical assets from any damages made by nature, a neglectful employee or vandals. Remember that business liability means credibility for your business and credibility makes your business more attractive to the customers. Always remember that the coverage you need will depend on the company you intend to run.
It’s not a sprint. It’s a journey.
We know that starting a small business could take an incredible amount of hard work and time but if you mix wisdom and patience with the hunger you have to get your company going we’re sure you will have the recipe for success in your hands.
Take little steps day by day. Your passion will be the fuel that will get you through all the bumps you may find on the road, but knowledge and wisdom are the ones that will put you in the right path to make rational decisions and finally achieve success. Don’t forget that a lot of patience and effort will get you in the place you want to be as a new business owner.
Building a new company, seems like a journey that could take a few months, even years to achieve but don’t despair. You have all the tools to make it. Soon you’ll notice that everything is going in the right direction and that your small business dream is now a marvellous reality.