Having your own company certainly makes you feel great and it gives you the opportunity to pursue your passion while still enjoying a great work life. However, if you are planning to set up your business for the very first time, there must be so many questions running in your mind like how to start a company, what kind of registration is needed, how to determine the costs, and so on. So, to make things easier for you and to help you get started given below are 12 simple tips that you can start following right away.
1. Decide if you are ready
You may have a great idea but that does not necessarily make you a great entrepreneur. Just wanting to start a new company is not enough, and you need to be ready to play the associated roles and responsibilities, take the risk, be ready to suffer losses, and be ready to rise up again. So, first and foremost, even before you start using your resources and time, think if you have it in you to start and run your own company. It is recommended to start your company by visiting a branding agency to help you to put a visual on your project including business logo design, business cards, a website and so on.
2. Have a proper idea
You cannot just start a company because you think something is in fashion and you can make money by promoting and trying to sell it. You need to be passionate about whatever you are trying to sell or promote, and also need to have some experience in it.
Out of your passion and experience should emerge a product that you think people will find helpful.
3. Your business plan needs to be on paper
Having a business plan will prove to be helpful for you, and this is something you anyway need to produce to your investors. Make sure your plan contains everything important, including a company summary, mission statement, product or service offerings, operation costs, and target market, and so on.
4. Do a cost related research and decide your budget
You need to conduct a research to figure out the average cost factors in your industry. Your investors will be keen on knowing this and it will prove to be beneficial for your business. The next thing you need to do is decide how much you will need to spend on developing your service or product, and then create a marketing plan. You need to have a clear strategic financial management plan with the following financial statements:
- Income Statement (i.e. revenues, expenses and profitability);
- Cash Flow Statement; and
- The Balance Sheet (i.e. assets and liabilities)
5. Begin your investor search
To start your company you will require funding. You may be using your savings, taking loans, or using your credit cards, but at the same time, you need to search for an investor with whom you can work and who has a similar passion like that of yours. Do give importance to the suggestions of your investor but you need not always do exactly what they say.
6. Decide a name for your company
This is very important as you need to think of a name for your company, something that people will start associating your products or services with. Once you decide a name, check if the domain name is available and if it is allowed to be used in your country and city. Make sure you name is available as a domain name online to make sure you can promote peacefully your brand on internet.
7. Have your business name registered
Quite obvious but important tip or step is to register your decided business name legally, have it trademarked at the federal and state levels, and get your domain name secured. Every countries have their own governmental agencies, example in Australia, you will need to register your company at ASIC: asic.gov.au/
8. Give importance to taxes
Tax obligations need to be given enough importance as well. If you are living in the United States, then there are four types of business taxes you need to know about – excise taxes, taxes for employees, self-employment tax, and income tax.
9. Buy necessary insurance
You must have proper insurance matching your kind of business. If for instance, you have a home-based business then you need to make sure your homeowner’s insurance covers damage or theft of your business assets.
10. Be ready to make changes
Your investors or customers may not welcome your idea open-heartedly, but this should not disappoint you. Try to understand what it is that they did not like, try to make necessary changes, and approach them again.
11. Decide a location for your company
You need to choose a location that is easy to visit for your target customers, and also offers you a good chance of growth. Of course, the location also needs to be within your budget.
12. Offer perfect customer service
Your customers decide where your business progresses, so you need to make them feel happy, satisfied, and special always. If you make your customers feel important they are sure going to share their experience with others, and it will serve as a word-of-mouth marketing for you, the best kind of marketing ever.
So, now that you know the 12 tips to start a company, waste no time, start following them and be ready to enjoy great success in your new business venture.