Over 11,000 new businesses pop up on the landscape every hour, and 90 percent of these fail. Why do the successful companies make it? The entrepreneurs heading up the thriving brands are more likely to turn over and examine every rock prior to opening their doors, being thorough in their planning and preparation. Here are the do’s and don’ts you should follow to experience similar success.
Do Have a Business Plan
Commit time to writing out a complete business plan. This plan works as a map to assist you as well as potential investors in navigating through your business and clarifying your mission. Hash out the specific need that you are filling and how you will go about doing that. Describe who your ideal clients will be and why they will choose you over competition that may already exist. Outline all costs and expenditures as well as expected profits. Lay out the legal structure of your company and all details as to how you plan to succeed.
Do Settle on a Name
Come up with a name that is meaningful to you but also offers a sense of longevity as opposed to a name that will be highly trendy and then quickly become obsolete. Check your state filing database as well as a fictitious name database to verify that your chosen name is available and has not already been registered by a competing company within your industry. This could lead to your application for a name to be rejected, resulting in a waste of time that you have already put in for branding. Do an online search, as well, to see whether any sites turn up for already established businesses.
Do Know What Licenses and Permits You Need
Depending on the type of business you are starting, an array of licenses and permits may be mandated before you can open for business. Check with the industry standards in your area and file all necessary paperwork with plenty of time to allow for glitches and reapplications down the road. Budget adequate funds for fees and costs associated with the applications. If you have a brick-and-mortar location, verify if any additional licenses or permits will be needed for your particular establishment.
Do Consult With Professionals
Consult with a professional accountant and possibly a lawyer to ensure that you have crossed your t’s and dotted your i’s. Discuss which legal status would be most beneficial for you concerning your company before filing as a sole proprietorship, LLC, S Corp, or any other legal status. Obtain a tax identification number and register for state and federal taxes. Have an outline set up of what you need to record and organize for the ultimate efficiency come tax time.
Do Get Insured
Do not leave yourself vulnerable. Obtain all insurances that are necessary in order to protect you and your assets. Insure your goods or services and invest in a solid liability plan to protect yourself from unforeseen circumstances as well as any time you have clients physically visit your property. While you do not want to overspend by over-insuring, do not take the chance of losing everything you worked so hard for by being inadequately covered.
Don’t Spend Freely
Rein in the impulse for overzealous spending. While you may be looking ahead at the potential growth of your brand, this does not mean you need to sign for an oversized space or invest in a large volume of inventory. Start out with the bare necessities to keep costs down and only spend as your profits increase and as your business plan mandates.
Do not rush into the final stages of your new business without first carefully combing over every minute detail. By being thorough in the early stages, smoothing out potential hiccups, and providing in-depth planning and structure for your company, you are giving yourself the proper tools to be in the 10 percent of success stories.
The content on our website is only meant to provide general information and is not legal advice. We make our best efforts to make sure the information is accurate, but we cannot guarantee it. Do not rely on the content as legal advice. For assistance with legal problems or for a legal inquiry please contact you attorney.