Young Upstarts

All about entrepreneurship, intrapreneurship, ideas, innovation, and small business.

4 Things Not To Skimp On When Starting A Business

Starting your own business is a lofty goal with benefits like personal financial freedom, working in an industry you’re passionate about, and the ability to take time off when you’d like to spend time with family or handle other things in your life.

However, if you want your company to be successful, you must remember that you need to spend money to make money.

1. Marketing and Advertising.

Nearly 80 percent of new businesses fail within five years. For some, it is because they don’t offer a quality product or service, but for many, it is because they don’t put forth consistent marketing efforts. Spend money early on marketing. The best way to do this is to hire a professional to help you create a solidly branded website and matching social media profiles. Once you have everything set up, you can maintain it on your own until you’re earning enough money and bringing in enough business to warrant hiring someone to maintain it for you.

2. Legal Assistance.

Never compromise on legal assistance, especially if you have no experience yourself. Contracts are essential for every part of your business, from leasing a venue to working with vendors. Depending on the type of product or service you provide, you may even need them for your customers. A lawyer who is knowledgeable in your industry can ensure your business contracts are airtight, protecting you from potentially disastrous situations in the future. Keep in mind that you’ll want a go-to attorney even after your contracts are done, so choose someone you’ll want to work with long-term.

3. Business Insurance.

Protecting your business is essential, which means you must purchase business insurance. Start with professional liability insurance, which will protect you against negligence claims. If you rent or own business property, you’ll also need insurance for it. Depending on your circumstances, you may also need home-based business insurance or workers’ compensation insurance, among others. Remember, depending on the type of business you run, some types of insurance may be unnecessary, but others may be required by law. Work closely with your attorney and your insurance broker to ensure you have the coverage you need without going overboard and spending too much money on it.

4. CRM Software.

Customer relationship management software is essential for any business. An excellent software allows you to keep track of your customers, including their names, contact information, orders, shopping habits, invoices, and much more. Some software also allows you to track your inventory, vendors, due dates for business-related invoices, and other behind-the-scenes stuff. Still others even allow you to create newsletters, promotional codes, and other ways to offer your customers something extra. When searching for a CRM software, look for one that provides reports and graphs to help you track how well your business is doing and see where you can make improvements.

Remember, planning should be a priority. Before you launch a new company, spend time creating a business plan, researching the market, and securing proper financing. Launching your company without preparing in full makes it more likely that you won’t make it to that five-year mark. Patience is a virtue when it comes to operating a successful business.

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Young Upstarts is a business and technology blog that champions new ideas, innovation and entrepreneurship. It focuses on highlighting young people and small businesses, celebrating their vision and role in changing the world with their ideas, products and services.

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