Starting a business is one of the most exciting challenges you will ever experience. It’s a great feeling to exercise creative control over your career and build a business just the way you want it. But don’t overlook the essential startup tasks that need to be handled to get your new venture off the ground. No matter what your business is or how fun your product or service can be, the practical considerations are vital to your new business’s success.
Incorporation
One of the first things you should do is establish a business identity in your state that is separate from your personal identity. This is important because it protects your personal assets in case the company is sued, except under certain conditions. Decide on the type of business you want to run, such as an individual proprietorship or a general partnership. Professional organizations like LLC formation services can help. If other people are involved or if you have business partners, prepare a legal agreement that clarifies each person’s rights and responsibilities. Contracts like these can save you time, money, and worry in the future.
Insurance
Your business should have its own insurance policy to cover the facility, employees, and products or services. Depending on the size and type of your company, you might be able to simply add a rider to your home insurance policy. If not, you can take out a business insurance policy. A company policy should cover all of the assets so that anything that is lost or damaged can be adequately restored or replaced.
In addition to property policies, you should have a worker’s compensation policy. Accidents happen, and an employee will likely be injured on the job at some point. Having the insurance to cover medical bills and wage replacements protects not only the employee but the company as well.
You will likely also need a liability policy, to protect your business in case that a customer or their property is harmed because of or in connection to your business. There are a couple types of liability insurances, so look at your options and choose what will serve your business best.
Finances
New companies often succeed or fail based on how their financials are managed. It is a good idea to hire an accountant at least part-time to advise you on developing an operating budget as well as a strategic growth plan. They can help you in terms of investing profits to build an emergency fund and possible future expansion. You will need to manage taxes associated with your business unless the accountant or a tax attorney handles the tax preparation and filings.
Staffing
Unless you plan to operate an individual business, give some thought to the credentials of people you plan to hire as well as their job descriptions. You may need to supply training or possibly uniforms as well as work stations and equipment, depending on the type of business you own. Employee policies, safety, and benefits are more factors to consider before you start interviewing applicants and hiring staff.
There is plenty to think about in becoming an entrepreneur. Plan now to cover the bases before officially launching to give your business a promising start.
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