Four Things You Should Do Before Starting a Business
Starting a business is exciting. However, it is also very risky. According to the statistics from the Bureau of Labor Statistics, 20% of new businesses fail within the first year, and nearly 50% fail after five years.
If you are planning to start a new business, you must take the proper steps to ensure your startup doesn't find itself among these numbers.
How do you guarantee business success in such a challenging startup world? Here are our top tips:
1. Develop a Business Plan
Successful businesses are not created by luck - they are built on a solid foundation that starts with a plan. Your business plan serves as a strategic roadmap for your company.
Your business plan should answer the critical questions that define your business model and structure, such as:
● Vision and mission statement
● Market analysis
● Marketing strategies
● Startup budget
● Financial requirements
● Growth projections
● Business goals and objectives
● Business structure
Aside from providing direction for your business, your business plan also helps to influence investors to commit their resources to investing in your company.
2. Consult With a Business Attorney
Before anything is filed with the Secretary of State, you will need to choose a legal structure for your new company. Your business structure determines how you file taxes, the liability you have as a business owner, as well as other legal requirements you must meet in order to properly form your business entity. Choosing the wrong structure could have unknown consequences, such as being limited on investors to help fund your business or incurring additional expenses to convert your business entity to a structure that is aligned with your business goals. As a result, you shouldn't decide on a business entity type without expert legal counsel.
In addition to choosing your legal structure, you should run a comprehensive trademark search to make sure your new brand name won’t infringe on the intellectual property rights of an existing brand.
Once these steps are completed, you will be ready to register your new business with the Secretary of State’s Office. Registering your business and its trademarks also protects your firm from copyright theft or infringement. This legal protection is
3. Have a Brand Identity
Branding is non-negotiable for businesses in today's digital world. Developing a brand image is crucial to fostering awareness and establishing trust among your target clients.
Your branding efforts begin with having a brand name. Your brand name is among the most recognizable features of your company. It is your business’ identity to customers and clients.
In other words, it's easier for customers to relate to your brand when you have a unique brand name that they can recognize anywhere.
Alongside a brand name, you may also need a logo. Your logo is an indispensable part of your brand image.
It's often the first thing customers think of when your brand comes up in a conversation. In a nutshell, effective branding is unachievable without a brand name and logo.
4. Consult an Accountant
Being a successful entrepreneur requires you to understand business finances and recognize when you need to work a finance expert for your company. Whether it's taxes, sales revenue, insurance, capital, or marketing expenditure, you'll deal with money throughout the life cycle of your company. Taxes can be particularly complicated, depending on your business structure.
You'll need an accountant to organize your taxes to ensure you make timely payments and are not breaking any tax laws.
An accountant is also invaluable to balance the books and assist you with financial projections.
While you may feel you can handle these details on your own, the stressors of growing a startup business can be overwhelming, and it always helps to outsource some duties to experts.
Conclusion
Starting a business is not easy. Doing business the right way can be even more challenging. Nearly half of the new businesses established in America fail within five years.
To ensure your business isn't among these numbers, you'll need to invest in adequate planning.
Drafting a business plan, working with an attorney and an accountant, and investing in branding and marketing are crucial considerations to building a successful startup.