It’s easy to get lost in the maze of all the things you need to keep a lookout for when starting up a business. There’s the source of the funding, the legal paperwork, maybe the location, the personnel. Amidst all the raucous, it’s equally easy to forget some of the things that are vital to the establishment of your small business.
Yet, overlooking just one simple detail can be a costly mistake.
Let this never happen to you. Tick these most important aspects of entrepreneurship off your list when setting up a business.
Get your permits
The kind of business you are putting up determines the kinds of permits and licenses you need to take. Aside from the legal paperwork, there are also the fees charged for organizational memberships. These fees could be annual or one-time.
It is important that you know which permits you need to obtain. Have them done the soonest time possible to mitigate any (especially) legal complications in the future.
Learn the A to Zs of business laws
Knowing your rights and the rights of your customers, as well as the limits as to what you can and cannot do as a business is of primary significance especially when you’re just starting up. Know the existing laws regarding the industry that you are exploring as well as the local and state regulations on business operation and function.
Think demand, location, marketability
Is there a market for your business? How is the competition in your location? Did you do a feasibility study in the area to determine that there indeed is demand, and therefore, potential profit to be had from establishing the business where you want it?
Marketability determines potential and if there is no potential in the first place, you might just be wasting too much time and effort into something that will not pay off.
Find someone who knows
Having someone with the experience and expertise to guide you through the whole establishment process can be extensively helpful in doing things right. This could be a financial advisor or a business partner who had more years in the industry. With a person you know you can rely on, you not only lessen the anxiety about things going haywire; you also have a tested compass to guide you through as you go along.
Pre-agree on settlements
If you’re opening up a business with a partner, it’s generally unwise to hold your partnership in faith. You can never predict what will happen in the future. Personal conflicts may escalate and can cost you not just your friendship but also your business. Although it might sound insensitive, you need to be objective and set yourself ready for any untoward eventuality.
Set up partnership agreements with your co-owner to pre-settle things in such case. Sit down with your lawyer to firmly arrange the matter.
Probe the area’s market status
If you are planning to put up business in an area that is still struggling from the crisis, or one that is beginning to dwindle because of current market pressures, you might have to reconsider your decision. Economic conditions affect demand and revenue. Look at current trends, listen to forecasts, and consult with your financial advisor if the current market is strong enough for your business to enter.
Make yourself a solid Plan B
You have to consider every point in the success spectrum of your business. If you fail to do this and not have a Plan B for when things don’t go as you hoped it would be, you could be in debt, and trouble. Structure your finances in such a way that you will still have money to keep things going when the business is still growing, or when it does not hike at the pace you were expecting. By having things planned ahead, you will not have to worry about the possibilities of failure. Prepare well!