How intending Entrepreneurs can start a business
Many issues has to be understood and fixed before a business could be started.
Some necessary things like liability protection, human resources, intellectual property protection, financing, sales, marketing should be fixed.
Most Entrepreneurs have fought with all these battles and have achieved victory in the long run, most becoming multi-billion-dollar companies.
Today we are going to look into things to be fixed and steps to be taken in order to achieve success in business, also to becoming that big business owner you have always dreamt of.
1. Show commitment to the Business, study and understand the challenges involved
Every business needs commitment to grow. It is a pity that most Entrepreneurs do not understand the importance of putting in their resources, energy and time to their new business.
Learn to put in your all in that your business for it to grow. At a start, the income might be low but it will surely turn out big depending on the efforts you put in towards the business.
You can come across these challenges when you start a new business:
Branding -Choosing a unique and attractive name for your business
Emerging with unique Service or product
Strongly building a firm vision and plans for the business
Capital for start might be a huge challenge
Securing excellent workers
Reaching decisions of firing workers in such manner to avoid legal liability
Rejections from customers can get you discouraged
Efficient time management
Ability to device new strategy
Ability to keep going and not to quit
2. Get unique brand for your business
Choice of name drives your business. The more unique and attractive your brand is, the more likely customers are to show up. Always choose the right name according to the nature of your business.
Some of these tips can help you choose a unique and wonderful name for your business:
Must be easy to spell
Not hard to pronounce
Easy to remember
The name must not be limited to a particular country…think global!
You can search the internet for ideas, meaning and uniqueness of some names
Get your business name registered with a domain registrar quickly before someone else does it
You can make an extensive trademark search
Let the name be swift to hearing
You can ask employees, partners, investors, and potential customers for a review of the name chosen
3. Get your business name registered under a Business Corporation
It is not advisable to start a business as a sole proprietorship as it can result to risking your personal assets.
You can start the business as an S corporation, C corporation or a limited liability company as none are expensive or difficult to set up.
It is much preferred starting up the business as an S corporation which can easily be diverted to a C corporation.
By filing a Certificate of Incorporation for a corporation, most business owners have been wallowing in ignorance thinking they’re covered totally from personal liability.
Ordinary incorporation does not guarantee business complete protection.
Certain procedures are to be taken to reduce shareholder or personal liability:
The corporate name should be frequently used
Full corporation name should be used in (Inc. or Corp.) on every invoices, documents, or contracts handled by the corporation. In doing this, the corporation will be indicated as a separate entity.
Make use of appropriate signature
Signing on the account of the corporation, the name of the corporation and your title should be used. When signing the contracts on account of the corporation, you can use this format:
Your name – authorized signing officer and corporate title
Adhering to Corporate formalities
Issuing stock properly, bylaws, holding, recording the meeting minutes, meetings of the Board of Directors, etc are corporate formalities that should be followed.
Taxation to be kept separate
Separate tax returns should be filed for the corporation and company taxes account should be different from Corporate accounts.
Funds should be kept separate
Individual shareholders and Corporate funds should be kept in different accounts.
Corporation transactions required to be separate from individual transaction.
4. Increase your tactics and plans to grow bigger
You should be able to draft bigger plans, know the right step you need to take at each point. Know when and how to get prospective investors, customers, employees, or partners.
These tips can help you:
Pitch the problem you are solving.
Start out strong.
Avoid using industry jargon.
Convey why your business is unique.
Be positive and enthusiastic in your delivery.
Remember that practice makes perfect.
Keep it to 60 seconds in length.
5. Good products are required
Your products must stand out among your competitors. You should not waste time in marketing that great product and always get feedbacks from your customers to know how the feel about your product or service.
6. Get your Company online by securing a website for it
Endeavour to secure a website for your company by getting a domain name for it. Your customers, partners and prospective investors will visit the website to check it our. You’ll also get reviews on your unique product.
Some insights to get your website started:
Compare your competitors sites
Get nice Professional theme for your site or hire a website developer to do the work
Give your web developer insights on how you want your site to look like
Optimize the site on search engines
Your contents in the site should be unique and of high quality
Your site should be optimised for mobile devices
Your site should load quickly, host your site with foreign hosting company
It should be easy to navigate, simple, unique and we’ll designed
Your domain extension should be professional
Make it easy for your customers to be able to reach you through your website by providing your contact details
7. Get a Tax ID for your business
Tax ID is known as Employer Identification Number (EIN) which is similar to a Social Security number. The tax ID can be gotten from the IRS for your company.
It will be required in opening of company bank account; get an EIN online through the IRS website.
Banks in States like California, New York, and Texas require a state ID to create the business account.
8. Your Bookkeeping System should be accurate
To keep track of your finances—income, expenses, capital expenditures, EBITDA, profit and loss, etc, good bookkeeping and accounting system should be adopted.
It aids to understand the business’s cash flow situation and for tax-filing issues.
Online software solutions like QuickBooks, Zoho, FreshBooks, and Xero can be useful for the above purpose.
9. Deals with the Co-Founders should be stated clearly
By not earlier stating and defining the terms of Relationship to be in existence in with your Co-founders, you might have legal issues afterwards. Founder agreement should not be neglected.
Your founder agreement should be be able to address these points:
If one founder wants to leave the business, does the company have the right to buy back his or her shares? At what price?
How is the equity split among the founders?
If one founder leaves, does the company or the other founder have the right to buy back that founder’s shares? At what price?
Is the percentage of ownership subject to vesting based on continued participation in the business?
What are the roles and responsibilities of the founders?
How much time commitment to the business is expected of each founder?
What salaries (if any) are the founders entitled to? How can that be changed?
Under what circumstances can a founder be removed as an employee of the business? (usually, this would be a Board decision)
How are key decisions and day-to-day decisions of the business to be made? (by majority vote, unanimous vote, or are certain decisions solely in the hands of the CEO?)
What assets or cash does each founder contribute or invest into the business?
How will a sale of the business be decided?
What happens if one founder isn’t living up to expectations under the founder agreement? How will it be resolved?
What is the overall goal and vision for the business?
10. Extensive reference check should be adopted in case of employment of workers
During interviews employers fail or don’t care about reference check or poorly conducts it.
The interviewee should be scrutinized to be able to know the performance and the strength towards the work he is seeking.
Proper scrutinizing includes:
Verification of prior job role and responsibilities
Verification of job titles and dates of employment
Verification of educational degrees and dates of attendance at schools
Verification of starting and ending salary
Conversations with prior supervisors as to the applicant’s strengths and weaknesses
Inquiry as to why the applicant left the prior employer
Inquiry as to the applicant’s ability to get along well with other employees and customers
Reference checks with other people not listed by the applicant as a reference
Inquiry as to the applicant’s ability to take on the new role
Inquiry as to punctuality or absenteeism issues
These checks are important to aid the employer know if the employee is fit for the company and can soothe the company’s culture, also if their resumes and employment application are accurate.
The federal government through the Fair Credit Reporting Act regulate the process; the laws of many states also regulate it. Not following this technical process, can lead to class action lawsuits. Legal advisers should be hired for advice on this.
11. Consultants and Freelancers can aid Supplement Your Team
Your might be needing small number of employees during your startups due to money issues. Using consultants or freelancers can help fill in for specialized expertise. Employee costs and benefits payments can be avoided this way.
Some websites like Freelancer.com, Guru.com, and Upwork.com can aid you get freelancers.
12. Market your business Often
Some marketing strategies include:
People searching for your products and services online might find you near the top of search results through SEO. Get to learn the fundamentals of SEO
Promoting your business on social media is awesome and can get much audience and engagements. Use social medias like LinkedIn, Facebook, Twitter, Pinterest and others to market your business and products
Guest article writing can also be a strategy of marketing true content writing
Issue press releases for any significant events.
13. Become a Strong Salesperson
Learn how to sell your business to customers, prospective investors and potential employees.
practice your sales pitch, get feedback from a variety of people, and then refine your pitch.
Being positive, good listener and trustworthy is factor.
14. Capital to Finance Your Business is necessary
Of course that your business need enough capital to keep it going to avoid collapse.
You should source any means at your reach to raise enough Capital to run your business.
Some sources of raising business capitals are:
Friends and family
Crowdsourcing sites such as Indiegogo.com and Kickstarter.com
Bank loans/SBA financings/online lenders
Equipment loan financing
15. Permits, Licenses, or Registrations Needed for Your Business should be defined
Having permits, licenses, or regulations is dependent on the nature of the business you’re into.
The following permits, licenses, or regulations might be needed:
Home-based business permits
Permits need for regulated businesses (aviation, agriculture, alcohol, etc.)
Sales tax license or permit
City and county business permits or licenses
Health department permits (such as for a restaurant)
Federal and state tax/employer IDs
16. Appropriate Books and Records for Your Business should be set up
Invoices & contracts, Bank accounts, Creditor records, Tax filings and records (federal, state & local income, sales and property taxes), Secretary of State filings (Certificate of Incorporation, annual filings, etc.), Financial statements (P&L, balance sheet, cash flow), Employee records, Board and stockholder minutes and consents and Stock and options ledger are need for your business.