Starting a company takes a lot of planning and wise decision-making in order to lay a foundation upon which success can be built. Walking blindly into starting business not only results in poor profit performance, it can spin a complicated web of legal issues and credit trouble that can spell long-term disaster. Fortunately, well-planned companies are geared for success; and you can take advantage of these top 5 things to consider when starting a company to get it right the first time.
1. Consider the legalities
What type of business entity will your company be? What business licenses do you need, and where do you need to file? How about taxes? These are things you’ll need to know to satisfy your local, state and federal governments, so you’re sure to remain in business without penalty. You’ll also need to know what insurance coverage you need and how to protect your personal assets from lawsuits, if needed. It’s better to know – and plan for – these things now instead of being caught off guard in the future.
2. Consider expenses
What will it cost to start up and run your company? How much do you need in operating expenses the first year? The second year? The third … you get the picture. Create a business plan to account for these expenses and address how they will be paid for, and where your profit will be coming from.
3. Consider marketing
How and where will you market your products and services? Will you take ads out on television or will you send direct-mail postcards? How about a newsletter or ads in trade publications? You must know how you’re going to market to your target audience before you define your expenses. You can get accurate pricing on quality direct-mail marketing pieces such as postcards, newsletters, brochures and flyers from PsPrint’s online printing tools.
4. Consider your audience
This is one of the first things you need to know: Who will buy from you; what will they buy from you; how much will they spend; and how will you connect with them? You must completely understand your market segments before you successfully market your company. Prepare plenty of market research for your business plan, including competitor research, niche segmentation and value-perceived services.
5. Consider task delegation
Who will do what within your company? Are you a one-person show, or will you hire employees or outsource to other firms and freelancers for day-to-day tasks, accounting, legal issues and other necessary business functions? It’s a good idea to free yourself up to focus on business growth, but only if you can afford to. Many small business owners have to roll up their sleeves for the first few years before they can begin delegating daily tasks.
By addressing these five considerations you’ll position your company for future success by building a sound base on which to build. If you do not take these steps, you run the risk of business failure and financial ruin. Make sure you consult with a business adviser before making major leaps, and invest in your business wisely. A solid plan from the get-go yields profitability down the line.