You’ve finally decided to take the plunge – you’ve left your job, you’ve invested all the money you have, and you’re starting your own business. Venturing into a start-up business and being your own boss is equally exciting and terrifying. Although it’s no walk in the park, everything is worth it in the end when you see your successes and celebrate the wins with your new team.
Before you jump in with both feet, there are quite a few facets to consider. New businesses can be incredibly difficult especially if your business is in a volatile market. Surely you’d want to do everything you can to ensure its success? Here are the three main aspects you should consider when starting a small business.
1. Your capital.
You may have saved enough money to start your business, but have you factored in the long-term capital to maintain it over the first few years? The first thing to think about is how you plan on financing your company before it becomes profitable. Estimate your start-up costs as part of the first step in financial planning, so you know what to expect and what kind of funds you need.
If your savings aren’t enough, there are plenty of ways to get financing:
- Get investors to help fund your business.
- Take out a bank loan.
- Get a loan from a finance company.
- Use your home as collateral for a home equity loan.
- Get a loan from family or friends who want to support you.
- Start a crowdfunding campaign.
2. Your team.
Is your new business a one-person operation or do you need a small team? If the answer is the latter, figure out what skills and how many staff members you’ll need on-board. Building a solid team that will help take your start-up to the next level is essential.
There are a few things to consider when building a team. What kind of office culture are you trying to cultivate? Are you looking for a team to be present in the office or can they work remotely, or both? Is there room for your new employees to learn and grow, and if not, what benefits are you offering them if they work for you? Don’t forget to consider the salaries required, as skilled workers expect a certain pay grade.
Business insurance is highly recommended from the very beginning of your venture. It exists to help your company recover from any unexpected financial burdens and is one less thing for you to worry about. There are many types of business insurance, but they’re not one-size-fits-all. It’s best to understand exactly what kind of risks your specific business may face, such as public liability, directors and officers liability, or business interruptions, and find a business insurance quote that covers you against all of these risks.