Putting Your Best Business Foot Forward
Starting a business can be stressful. It often feels like there are 1,000 things to get done all at the same time. There's no avoiding this reality for new small business owners, but with a little planning, it's possible to manage expectations and take actions with a sense of purpose toward building your business.
Here are 4 things you need to know before starting a business:
How to register
The structure of your business is one of the first decisions you’ll need to make as a business owner. Different business structures offer unique benefits and limitations that you should be aware of.
Understanding the difference between a sole proprietorship, partnership, and incorporation help you determine the best choice for your business.
Taxation and legality
It’s important to understand what regulations, licenses and taxes you will need to follow, obtain and pay for your new business. “Quite often small business owners will lean towards Sole Proprietorship to save on registration costs,” says Rick Orlando, Family Banking Relationship Manager at Prospera Credit Union. “I always advise my members to consult their lawyer and account and see which registration suits their business structure.” After doing some initial research on your own, consult with a lawyer and accountant to confirm your understanding and to help structure your business to comply with the law.
Establishing a successful business is hard enough. The last thing you need is some technical legality or administrative detail to stand in the way of your success.
Construct of business
If you’re not seeking outside funding at the start, it’s tempting to go without writing out a formal business plan. However, taking the time to write out your business plan, forecasts and marketing strategy is a particularly effective way to keep your eye on your vision.
In addition, don’t overlook the exit strategy at the beginning. Do you want your children to take over the company? Do you want to sell it? It’s critical to think about these questions from the start, as the building blocks of your company (such as legal structure) should vary depending on your preferred final outcome.
Insurance & Benefits
When working on your business plan, do not forget about the most important factor: YOU. You need to take into account your living costs. Rent, mortgages, and health insurance -- these are all things that don’t pay for themselves. “Insurance and benefits are a piece of the business plan that is quite overlooked by small business members,” says Orlando. “It’s key to consider how you’ll stay protected if you get injured on the job, or how will you maintain building your net worth through a savings plan”.
Starting a new business is a venture that could really pay off for you and your family, so take the time to ensure you plan for the future by meeting with a Financial Advisor. Head over to our website and book an appointment with our easy “Click to Chat” feature, or give us a call today!