Boost Your Launch Success: The 10 Must-Dos Before Starting a Business

10 Things Every Startup Business Must Do

Establishing a startup business is an exhilarating journey for entrepreneurs since it heralds endless possibilities and promises of a better future. However, the path of starting a business is not an easy one. It is riddled with challenges, legal hoops, and certain processes. On the bright side, to make it easier, there are a couple of things you need to do to?launch your startup business?in this article. Keep reading to learn the ten things you should add to your checklist before really starting a business.

Business Plan

Writing a business plan is the first step to showing how committed you are to your startup business. Moreover, it fleshes out and cements a business idea into an actionable roadmap.

A business plan is a document that details every aspect of your startup. It is also one of the first things interested investors ask for and it is used to also validate if an idea has a better chance of succeeding in the long run.

Business License

A business license is an official registration that documents that your startup business is allowed to legally operate. When starting a business, it is important to fulfill the legal requirements that are imposed by federal, state, and local governments first.

Business licenses and permits enable governing bodies to regulate businesses. Furthermore, it also benefits startup businesses. For one, a business with the proper license and permits is more likely to be trusted by customers, employees, investors, and other stakeholders.

There are different types of business licenses and permits:

• Business Operating Licences. A state- or city-issued license that grants your startup business permission to operate within the city or state.
• Doing Business As Permits. Allowed your business to operate under a different name from the name you have registered.
• Planning And Zoning Permits. Proof that you have complied with the regulations indicated to allow you to operate in specific areas.
• Building And Home Occupation Permits. It is a document that verifies that a building is safe for occupation and does not have any structural problems
• Fire Department Permits. A permit that verifies that your local fire department confirms your business is following regulations and does not violate any safety codes.
• Tax Regulations. This ensures that your startup business complies with all tax regulations.
• Health Licences And Permits. This is a permit that verifies your startup business is up to the health code standards. It is especially important for businesses that work in the food and beverage industry.
• Environmental Licences. This is a permit that is important for businesses that operate in specific areas that have environmental codes that need to be followed.
• Sign Permits. This is a permit that validates that the business complies with the local government’s regulations on business signs.
• Industry-Specific Licences. These are standard licenses that are specific to your industry.

Business Insurance

There are times when certain emergencies crop up, such as the COVID-19 global pandemic and natural calamities, that can negatively affect a business. That is why a startup business needs business insurance.

Business insurance is a financial shield from setbacks during crises and unexpected incidents. However, it is not a one-size-fits-all shield. There are actually different types of insurance that have policies that cover specific things and events. There are certain aspects that need to be covered first before starting a business:

• Lives of the business owners and principals
• Lives of key employees
• Lives of an employee group
• Long- and short-term disability of owners and employees
• Liability for injury to owners and employees
• Property and casualty coverage for buildings and machinery
• Liability for any damage to business transportation assets
• Product liability
• Employee health insurance for sickness and injury
• Workers’ compensation for earnings lost due to injury

Types of business insurance to consider when availing for your startup business:

• Business Owners Policy
• Business Interruption Insurance
• Management Liability Insurance
• Workers’ Compensation Insurance
• Errors And Omissions Insurance
• Product Liability Insurance
• Auto Insurance
• Cyber Insurance

Legal Structure

Next is choosing the right legal structure. This is one of the aspects that need to be decided in the early stages of starting a business because it will be much harder later on.

Each type of legal entity has its specific requirements and limitations. However, not all are suited for any business. There are types of corporations that are better suited and will better serve your startup business. It is encouraged to reach out and talk to an attorney or business accountant that can provide better insight into the appropriate legal structure.

Business Registration

Once you have established the foundation of your startup business, the next step is to register it. This is important since obtaining things like licenses, permits, taxpayer identification numbers (TINs), and employer identification numbers (EINs) is required by certain governing bodies.

There are a lot of resources available online to aid you in things like registering business names, filing incorporation paperwork, obtaining licenses and registrations from your local government, and sorting out your tax information.

Funding

Getting funding can be achieved with just you as a solo entrepreneur or even with other business partners. However, getting funding can be easier with the aid of investors.

Investors are interested parties who want to know how much initial capital your startup business needs upfront and later on to be set up and continue operating. Keep in mind that the source of funding should be included in your business plan. It should also include the percentage of ownership among stakeholders.

Here are a couple of funding sources available for startup businesses:

• Personal Savings. This is the usual go-to option for entrepreneurs to use their own savings for starting their business.
• Friends and Family. Other business owners turn to their friends and family to seek financial support.
• Angel Investors. These are individuals or a group of people who provide capital to startup businesses in exchange for equity ownership.
• Venture Capital. Firms invest in startups with high-growth potential in exchange for equity as well.
• Crowdfunding. Entrepreneurs go directly to the customer and appeal to their interest to contribute small amounts of money in exchange for equity, rewards, and other exclusive promos.
• Bank Loans. Entrepreneurs approach banks and other financial establishments to apply for a business loan.
• Grants. Government and non-government organizations offer grants to startup businesses that meet specific criteria.
• Incubators and Accelerators. These are programs that provide funding, resources, and mentorship to startups in exchange for equity.
• Business Competitions. Entrepreneurs participate in competitions such as pitch contests to secure funding opportunities.
• Corporate Partnerships.?Established companies offer funding or partnerships to startup businesses that align with their goals.

Office Location

The location of your place of business can be a home office or an entire building in an industrial park. Be that as it may, what is important is to have an established location before starting your business.

Moreover, it is also important to sort out the following details as well:

• Phone number
• Stable internet service
• Ensure your startup business is listed in directories.
• Utility services
• Lease or purchase agreement

Legal Counsel

Another thing to keep in mind before starting a business is to have legal counsel. It is important since every step of the business and certain legal processes requires the help of an attorney. Moreover, you may require a lawyer that specializes in aspects of the business such as corporate, tax, intellectual property, labor, or international law.

Before signing any legal document or regulatory obligations, it is encouraged to confer with your attorney and review documents before giving any approval. This will save you time and money, and ensure that your business is safe from potential legal liabilities.

Local and National Resources

There are plenty of local and national business resources for the various needs of your startup business. These are documents that confirm certain aspects of the business, such as the availability of your business name, ensuring the legality of your chosen structure, complying with location-specific ordinances, offering guidance on different business loan options, and funding opportunities for entrepreneurs.

Marketing Plan

Lastly, a marketing plan should also be added to your overall business plan. One thing to keep in mind is that a marketing strategy should have an optimized website, whether your startup business is completely online or a brick-and-mortar operation.

Make Thorough Preparations Before Starting A Business

Starting a business is an exciting endeavor for entrepreneurs since it represents a lot of things beyond just being an establishment. While it does come with its own set of challenges, there are ways to ensure that every single step is smooth sailing for you—not completely, but almost.

One of the important things to keep in mind is to be organized and think ahead. Prepare everything that you may potentially need, document them, and organize them so that it can be easier to go back to later on.

You can check online resources to have a better idea of the processes, licenses, permits, and requirements you need to fulfill. There are also designated portals made by the local and national governments that provide more information for other aspects related to compliance and laws set by them.

What is important is to be thorough, and organized. In addition, remember to check everything twice, and ask for guidance from the professionals like an attorney and accountant to ensure everything is ironed out.

Author Bio:??Flexisource IT provides a gateway to top-caliber fully managed IT teams dedicated to servicing Australian businesses and startups to scale up and grow rapidly.

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