Starting a new business requires an intense amount of time and energy. There are a myriad of details that have to be taken care of, ranging from choosing a company name to applying for the necessary state and local licenses. You’ll have to decide whether you want to incorporate or not, and set up the company bank accounts. Depending on your type of enterprise, you may need office space, warehousing or even manufacturing facilities.
If you previously worked for a company, a lot of this may be very new to you. In a big enterprise, or even many mid-sized firms, there were people from different departments dedicated to all of the administrative and infrastructure needs of the company. As a new owner, you’ll be expected to handle everything and will have to learn on the go. Most importantly, you’ll need to make sure that some very important things are in place as you start your new venture.
Commercial Insurance Policies
There is a tremendous exposure to risk and potential liability when you are running your own company. You’ll need to make sure that your startup business has the proper commercial insurance policies in place, and that the coverage amounts are adequate. You don’t want your hard-earned investment in your company to go down the tubes because you had to pay out of pocket for an injured employee or a customer liability issue.
Carrying commercial coverage is also the law, as companies that have employees may be required to have worker’s compensation and perhaps unemployment or disability coverage. The exact coverage requirements can vary by state. Most of all, you’ll want the coverage so if you get sued it won’t cause you to shut the doors on your business.
One of the things you very quickly discover when you are starting your own business is that there is a lot that you don’t know. Learning through the school of hard knocks or by making mistakes you are funding can really take a toll and cost you money.
It’s far better to surrender to the fact that you don’t know everything, and rely on trusted advisors to help teach and guide you. To help your business prosper, it’s a great idea to put together an advisory board. The people on it can be individuals who will give you honest advice and can also applaud and encourage your personal and business growth.
Know How You Are Going to Get Your Customers
As a business executive once said, “if you don’t know how you are going to get your customers, you don’t have a business”. There are lots of amazing business concepts in the world, and while a few of them may go viral and generate their own momentum most other firms have to precisely know their customer channel.
Marketing positioning and how you sell are critical pieces of this component. In some cases, you’ll succeed because you are targeting an underserved niche or offering a new design with a price that beats the competitors. In other cases, you might reference sell and have a national vendor recommend you in to potential local customers.
When you are starting your own business, it’s critical to make sure you’ve taken care of key requirements before you even open the doors. Future success comes from a path paved with great choices early on in your business development.