So, you want to start your own business? If you think it will be easy, remember: Entrepreneurship is a long-term process that requires a lot of time, effort, and hard work. So, if you are leaving your current employer for a startup, here are some of the things that you need to do to make it happen –
- Brainstorm ideas– A business starts with an idea. Maybe you’re passionate about something or there is a gap in the marketplace which you want to fill. Wherever your interests lie, one thing is sure, there is a way to turn it into a business. Once you’ve narrowed down your list of ideas to two or three options, do a quick research on companies working in your chosen area. If you think that your company can give something which the present companies are not giving or can give goods and services at cheaper rates, you’ve got a solid idea and now you can create a business plan.
- Have a business plan– Now when you have an idea in your place, the next is to ask yourself some other important questions like what is the objective behind starting your business? How will you finance your startup ?. It is possible to answer all these questions in a well-drafted business plan. A good business plan will help you know where your company is going and how it will overcome roadblocks on the path to success.
- Have a clear idea of your finances– To start any business, you need to find out how you are going to cover those expenses. Do you have any means to fund your startup or will you set up your business in partnership? If you have a plan to make your start-up your full-time job, it is wise to wait until you have some funds to deal with costs.
- Decide your legal business structure– Before you register your company, it is necessary to know what kind of entity it is. Your business structure will decide how you will file your tax and other personal liabilities as well, if something goes wrong. If you are the only owner of the business, you can register yourself as a sole proprietorship, otherwise you will have to register your company as a partnership if there are more than one owner. It also includes registering yourself with the government. Every corporation will need an ‘Article of Association’ and ‘Memorandum of Association’ documents which have details like business name, purpose, corporate structure, etc.
- Build your team– Unless, you want it to be a one-man army, you will need to hire a good team to achieve success in your business. Defining roles, responsibilities, and division of labour will save you a lot of headache down the line.
- Buy insurance policies– Though, you might think to neglect this point as buying insurance may seem like an extra expense, however, buying the right insurance policy is imperative for the success of your business. Expenses like property damage, theft or even a customer lawsuit are some of the unforeseen circumstances which can hamper your company’s growth, and therefore, it is necessary to have a proper shield against such events. You can go with a professional liability insurance in case of a sole proprietorship as it will protect you in case the other party suffers financial or emotional losses due to your products or services. Similarly, if your start-up has some employees and partners, you should buy a workmen compensation insurance policy and group health insurance policy. A workers’ compensation policy will offer you legal liability coverage against accidents involving your workers during employment. If earlier you were covered under a group health insurance policy offered by your previous employer, you can get it converted into an individual mediclaim policy as well. In any case, you can buy a new group health insurance policy for your employees and partners to deal with medical costs.
- Start advertising– Even before you start selling your products or services, it is necessary to build up your brand and let people know about it. Create a logo with a catchy tagline that easily relates to people and displays your business objective. You can leverage the power of social media platforms like Facebook, Twitter, etc.; to advertise your company. The objective is first to let people know about your company so that you can easily find buyers when you launch your products/services in the market.
Undeniably, starting a business can be challenging, but backed with proper tool and information, you can achieve success. All the Best!