(Newswire.net — August 12, 2019) — Starting your own business is a lot to take on – and a lot to consider. It might seem overwhelming to remember it all, but a solid plan will help you achieve your dreams.
Keeping some important things in your sights will make your journey easier. Going in prepared is a key factor in the success of your business. In this article we will discuss 3 things that can help you on the path to success.
It’s Probably Going to Cost More Than You Think
Underestimating the costs of your startup can cause you to run aground quickly. There are a lot of things to think about, and it all depends on the type of business you’ll run. Some expenses might be obscure until you actually start your business.
Costs Add Up Quickly
If you need to rent a premises, it’s not only rental costs to consider. You have to factor in insurance, utility bills, and even a parking agreement. Or, if you’re working from home, you’ll need to think about how the business will affect your existing bills. Starting a bakery from your kitchen? Your electricity bill will be more than usual.
It could also cause your insurance rates to go up. Will your business involve delivery of some sort? Then you’ll have to think about a delivery vehicle, or anticipate more wear and tear on your own car.
Be Prepared
It’s small things like these that often surprise startup owners. Even if you know what all your costs will be, it’s still a good idea to overestimate them in the beginning. Once your business has stabilized, you’ll have a clearer idea of what it really costs versus what you budgeted. Overshooting those figures prevent financial snags.
A commonly underestimated figure is production cost. Aside from the raw materials you need, you might have to follow specific legal guidelines. There could also be a testing process required. These can make production cost rise.
There’s a Ton of Paperwork Involved
All that paperwork might fall solely on you in the beginning. In fact, the amount of time spent on paperwork could exceed the actual work involved in your startup. It’s a tedious, but necessary factor in the startup equation.
Initial Steps
You’ll have to determine a legal structure for your business, and file Articles of Incorporation. Will it be a partnership? An LLC? It’ll be up to you to research which is best for your startup. You’ll also have to think of a business name, and write a plan.
Employees
You’ll also need to obtain a Federal Employer Identification Number (FEIN) from the IRS. The FEIN will allow you to open a bank account and form a payroll system for your business. Then, you can make an accounting and payroll system.
Licensing
Depending on the type of business you’ll operate, you might also need state or federal licensing. Cosmetologists, medical workers, and real estate agents are examples of people who need to be licensed to practice their profession. If you’re selling something such as alcohol, you also need a federal permit.
The Fine Print
In some cases, you might need to have your employees sign a Non-Disclosure Agreement (NDA). If intellectual property or company secrets are part of your business, you’ll need a way to protect them. An NDA is a way to protect your business legally .
The Ongoing Paperwork
Don’t forget the paperwork you’ll need to provide employees. What will the employment contract look like? What are your company policies regarding vacations, dress codes, and sick days? Employees will also need W-2 tax forms for any wages earned. This is another reason you need an FEIN. Fortunately, there are resources to help you generate employee W-2s.
It Takes a Huge Commitment
You’ll have to love your business, because it’ll need to be the center of attention in the beginning. After you’re well off the ground, it can still be demanding. A lot of time, money, and effort have to be invested. Even emotions get invested.
Endless Hours
Preparing for and understanding the demands will help keep you from getting discouraged. There will be stress, sleepless nights, and sacrifices to get things moving. You might have to work nights, weekends, and holidays. And it could take months or even a year before things level out.
Mental Stamina
It will take a lot of focus, too. You might have to put off vacations, nights out, and a lot of free time. You have to be very motivated and devoted to your startup. If you have a lot of personal relationships to maintain, you’ll need to become an expert at time-management. Otherwise, either your relationship or business could suffer.
Getting Creative
Around 20% of startups fail in their first year. Knowing what you’re up against can prevent your business from becoming part of that statistic. You might have to dive into new territory to keep things afloat. Marketing, networking, and overall dedication will be crucial to your new business.
Delegation
As your business grows, things should get easier – but that doesn’t mean there will be less work. You may find your business growing to the point you can hire people to delegate some of these important tasks to. However, you’ll still be the one in the driver’s seat, and the success of your business will depend largely on your dedication to it.
Consider the Work Involved
Going in blind is one of the biggest reasons startups fail. It’s essential to do your homework before you jump in with both feet. Think about the time and work you’ll have to do to make your startup a success. Ask yourself if your passion for your work is enough to drive you through the many obstacles. Above all else, prepare yourself as best you can, and you’ll be able to steer through the process like a pro.