So, you have a great business idea and have started on the road to making it happen. First of all, congratulations! It’s an exciting time for everyone involved – but there are some less exciting things to do before you get carried away. While you will want to get started on the good stuff, it’s vital that you make sure that you are ticking all the boxes – not just the fun ones. Here’s a guide to five things you must do before you start your business.
Choose a company name
First of all, make sure that you own the name you wish to trade with. It’s best to do this at an early stage for some prominent reasons. First of all, it gives you an unbeatable impetus and sets you up in a professional way. Secondly, it’s important that you claim your space in your chosen name. You’ll need a company name that doesn’t already have a trademark for another business, and it will also need to tie in with your website. So, during the naming process, always check for domain names at the same time – it will save you headaches in the future.
Understand your legal obligations
The easiest way to do this is to hire a lawyer, of course. However, if money is tight, then you might have to go down the DIY route. You’ll need to learn about business law so that you understand your responsibilities. You’ll also need to think about company formation and tax rules and regulations. There are also licenses that you might need to trade, too. It’s so important to do, and it will cause you problems in the future if you neglect your obligations.
Make a life decision
Before you get started on your new business idea or chuck in your job to concentrate on it, make sure you are at the right stage of your life. Money could be short for some time, so you will need savings to get you through. It’s not a great time to start a new business if you have a young family, and there are a lot of risks involved. You could, of course, start your business in your own time, but it will take a lot longer to turn your dreams into a reality.
Work out a budget
On a continuation of the last point, you will need to structure a budget. You will have to allow for money for you and your partners to live off, and you will also need money to invest. There will be fees coming from everywhere whether it is from suppliers, outsourcing, or marketing. It might be worth finding a part-time job while you make things happen.
Make a plan
Finally, make an excellent business plan. It should outline your idea, and how it is going to make money. Also, think about an exit strategy – it will make you a lot more attractive to potential investors. Head over to our guide to creating the perfect business plan if you need a little more focused advice.