If you are trying to start up a company, you better not be willing to let anything go wrong. You will have to spend much time figuring out the right move. By talking to other business owners, lawyers, accountants, marketing consultants, you will move ahead step after step, removing one obstacle at the time. Still, these five points may save you much headache and give you a more clear view what starting a business is all about.
Besides a sound business idea and the guts, a striving business takes a lot of hard work. It may seem that there’s always more to do when you own a company, than when you work for one. And not without a reason. In the first couple of years expect to work between 60-80 hours a week, so decide early in the beginning if you are ready to commit to the new enterprise and put your personal life on the back burner.
When you are choosing your company name, check if there’s an available trademark and Internet domain name. The United States Patent and Trademark Office website makes this easier. By taking a name with an established trademark you are risking a torrent of lawsuits and more importantly wasting all the resources you invested in setting up your business name.
You must be aware that a start up company will suck in much money. With that said, you have to be prepared to cut your extras that you can do without. Health insurance, living costs, rent and mortgages should be priorities in this phase, as you need to save up as much as you can. You have to be prepared for unforeseen and unexpected expenditures by establishing a more flexible budget. Even a part time job shouldn’t fall out of the equation until you come up with a sustainable budget model.
Money Makes Money
An upstart enterprise can deliver quite a financial blow. You’ll manage it by making priorities when and where to spend and where to save. A true mastery of economy is knowing to recognize situations in which spending won’t get you anywhere and those in which spending a few dollars more will make a breakthrough. You have to be prepared to spend money in order to make money. Maintain a checklist of items and materials that are crucial for your company operation. On the other hand, you can take advantage of many free apps that can help you plan your finance in the initial phase.
An excuse that you didn’t know the law won’t get you anywhere. Explore all the regulations you need to fulfill, licenses you need to obtain and taxes you need to pay before opening up. Although it pays off to do an initial research on your own, hiring a law firm and an accountant will help you fully understand how to regulate and structure your company so that everything resonates with the law. With all the difficulties and challenges of setting up a new business, you don’t need a legal or administrative obstacle on your way.