You’ve come up with a business idea that you’re sure will be successful: welcome to the world of entrepreneurship! This will definitely be an exciting time for you! Starting on this new adventure will also seem pretty hectic.
While running a business can be a very rewarding experience, there are several steps that need to be taken to ensure that your company is primed for a successful launch. Be sure to play close attention to these three aspects of forming a new business; make sure that your new company is running efficiently from day one.
- Build a strong foundation
Create a formal business plan.
Having a formal business plan is exceedingly important when launching any new business. Having a solid plan in advance of beginning operations gives you a set of clearly defined goals and objectives that will focus your day-to-day operations. Also, a well-written and organized business plan is an absolute necessity for successfully securing any outside investment or financing.
Get your marketing and branding materials in order.
Before you can reach your first customer, you’ll need flyers, sales letters, and other promotional materials to help you communicate your message. Part of this equation is having a logo, business cards, and custom stationery in order to present your company in a professional and memorable manner.
- Keep it legal
Take the time to make sure you incorporate or form your company correctly and effectively.
There are numerous factors to consider when choosing how and where to file (and/or incorporate) your new business. Some states offer beneficial tax implications and personal asset protection arrangements that may make it worth the extra effort to file or incorporate. Taking the extra steps to legally register your business also adds credibility to your new venture.
Properly insure your business, and stay compliant.
Depending on the type of business that you’re starting, there may be industry-specific requirements like insurance, operating standard, or tax requirements. It’s important that you understand these requirements before opening your business, so that you can ensure you are in compliance with each of these regulations.
Obtain all required permits, licenses, and tax I.D. numbers.
All corporate entities are required to have a federal tax ID number that is used to identify the business (much like a personal Social Security Number). This identification is used for a variety of financial reasons: paying taxes, and when applying for credit. Be sure to apply for this number early on, and store it securely to prevent any corporate identity theft. Take the time to make sure that you have all relevant local and state level licenses that are required for running a business in your industry.
Develop a team of relevant business professionals.
Having a skilled and reliable attorney and accountant can be a great asset for any business. A proficient attorney can help protect you in the event of any unforeseen legal problems. An accountant can often be a great investment, as they will be able to assist you with legally minimizing your tax related expenses, and help ensure that you are correctly keeping track of your financial assets. Talking to other business owners and conducting research using professional directories is a great way to find professionals that will fit your needs.
- Get your finances in order
Open a business-only bank account
Even if you are running a small business, it is integral that you keep you and your company’s finances separate. Typically, your financial institution will be sure to provide you with an in-depth set of requirements for what you will need to open up your business’s first bank account.
Develop good accounting practices from day one.
Whether you will have an accountant on retainer or plan on using small business accounting software to track your finances, you will want to carefully record your business income and expenses. Making a point to keep your finances organized will save you a substantial amount of time, and likely money, in the future.
Purchase all of the equipment and office supplies that you’ll need.
Once you are open for business, you are likely going to be short on time. By making the effort to find suppliers and purchase everything you will need before you open your doors, you will be saving yourself a lot of frustration later. This also makes the organization and accounting process much easier.
Consciously establish your business’s credit.
Any business can benefit by establishing a reliable line of credit with all of its main suppliers. Doing this allows you to avoid “prepaying” for your most commonly used materials, services, or products, which can have a substantial positive affect on your company’s future cash flow.
Swyft can help!
If you work with an experienced professional service from day one, you’re much less likely to make a mistake. Contact Swyft now for helpful support and information from experienced business professionals.Call us today!