If you are in the process of setting up your own business then you know how tricky it can be. You may have already hit several blocks along the way, you could be worried about how long your business will last.
You may already know that up to 90% of new businesses will fail to make it through their first year of trading. If you don’t want to become another statistic in the business world then you will need to get everything right from the start. If you are not sure what else to consider when it comes to getting your business off the ground then take a look at the article below.
Have an Idea
Every great business you see around you today started with an idea. Even if you don’t think it is a great idea, you never know what will get your business off the ground. There is a pet rock idea that was created in the 70s, you would think that nobody would be interested but they were flying off the shelves. Everything you think of is worth writing down. You never know when you will have an award-winning idea and you don’t want to forget about it. When you are starting your business it may be worth investing in a little notebook so you can write it all down.
Find The Funding
Once you have figured out your idea and created your business plan, you need to figure out where your money will come from. You may have heard that you can start a business with little to no funding at all.
This is somewhat true, however, you will always need a steady source of income when it comes to setting up your business. You will need to figure out your budget so you know how much you need for everything.
This includes employee salaries, rent/mortgage, and any equipment you need. Your budget needs to cover everything for at least six months until you start making a profit on your goods and services.
If you don’t have the money to hand right away then you will need to successfully apply for a business loan. In order to be accepted for this, you will need to have all your financial affairs in order.
If you don’t have a high credit score then you will most likely not be accepted for a business loan. If you are successful and you get accepted then you will need to make sure that you make your repayments on time each month. Failure to do so could result in you losing your business.
Get Up and Go
Find your motivation and you will get a lot more done in relation to starting your business. It can be hard sometimes to find the motivation you need, you may just want to stay in bed all day. This won’t get a business set up and to where it needs to be. If you need to talk to someone about what is going on in your life then you may benefit from speaking to an expert in the field.
Alternatively, you could speak to other business owners about any difficulties you have run into. Chances are they have experienced the same thing as you are going through and can give you some helpful advice.
Something you have to think about is where you want your business to be located. You have a couple of options here, you could choose to run your business from home or an office location. A lot of companies have come to realize that they don’t need business premises to run their company. This saves them money as well as transport costs to and from work.
However, there are still some companies that need to work from a set location. They are the ones that need to have all their employees under one roof. If you can’t run your business from the comfort of your own home, then you will need to search around for suitable premises.
If you are going to be working with the general public, then you will need to think about the location a little bit more. You don’t want to be situated too far away so that you don’t get the foot traffic through your door. However, being located in the main hustle and bustle of people will usually come at an additional cost. Weigh up your pros and cons when looking at different business buildings.
If you are wanting your business to succeed and stand the test of time, then you will want to have a strong team of employees working for you. Getting this step right from the start can ensure you never run into difficulties with staffing such as a high employee churn rate. This happens when employees come and go in quick succession.
It can be detrimental for your company as you will then need to take time out to find new staff. Finding the right people for the job all comes down to the type of job advert you put out there. This needs to state the type of people you are looking for, including their personal attributes, qualifications, and level of experience.
If your business has a lot of employees, then you may wish to give them rewards and perks such as a business vehicle and credit card. This is a huge responsibility and should only be given to employees you trust.
The issues you could have is people running up hefty bills and fines that come from the business vehicles. You can get around this by adding a clause into their contract that states they have to pay for these out of their wages.
You could look into getting fleet cards for your company. This helps to pay for everything that is related to the vehicles you have on the books that you let out to employees. To find out more, check out fleet card: definition, benefits, and expert tips.
When you start your own business, you will always be responsible for filing your own taxes. This is something that a lot of people forget about as they usually come from working for an employee. When you work for someone, your taxes automatically come off your salary.
However, when you work for yourself and run your own business, this doesn’t happen. It is down to you to put money away each month that will cover your tax bill. You will also need to register your business for a tax account, so you know how much you owe at various intervals.
Taxes can be a confusing step in running a business, and if you have never done them before, then it can be tricky to understand. There are companies and individuals out there who can help you with this step for an additional fee.
If you are looking for ways to save money in your business, then you may wish to outsource some of your jobs and tasks to freelancers. This can save you a huge chunk of cash as you will only need to pay out when you use their services.
This beats paying a full-time salary to someone you don’t need all the time. A great example of this could be an accountant, if you only need them once or twice a year, then there is no need to hire a full-time worker.
We hope you found this article helpful and that it gave you insight into everything you need to consider when setting up your own business. We hope that it stands the test of time and your business thrives.