Today, we’ll give you a quick breakdown of what you need to put in place first. We’re talking about the planning stages of your startup. Now, the more you can do at this stage, the better. The best companies take this planning and research stage very seriously. They know that to take their business to the next level, they need strong, solid foundations.
A thorough business plan is the single most important thing you can do in the early days. It gives you direction and goals. It helps you identify your place in the market, and craft a unique selling point. A business plan is your roadmap to success. Use it to present your target audience, a mission statement, and an actionable profit plan. How exactly will you make money from the business? A business plan is also essential if you want to secure funding from the bank or investors.
That leads us nicely onto point number two. If you’re serious about building a successful business, you need to gather a pot of startup funds. This is the cash injection your business needs to get off the ground. Every company has their unique startup needs, so costs will vary. Calculate how much money you need to set up your business, and start making a profit. Then, outline where that money will comes from. Will you borrow from the bank, approach friends and family, or seek angel investment?
Legal business structure
When you start trading and making money, you’ll have to report your earnings to the tax man. That means registering your company with the government. Now, there are a few different options available here, each with their legal requirements. Freelancers, for example, will choose the ‘sole trader’ option. There is also the ‘partnership’ route, or the full-fledged ‘limited company’. It’s best to discuss the options with a lawyer and professional accountant before deciding.
It’s never too early to think about security, and almost every business owner wishes they’d put provisions in place sooner. As a business, you’re vulnerable to data breaches and theft from inside and outside the company. If you plan on storing customer data, you need a serious solution. It’s worth investing in a data centre build to create a good foundation for your information. It will allow you to backup your information, and keep data secure from day one. If you don’t, you may find yourself in trouble down the line.
These are the essential foundations of your business. Make them as strong as possible!