5 Questions to Ask When You’re Starting a Business
A successful business isn’t just about having a good idea. There are millions, maybe even billions of great ideas out there in the world, but only a fraction of those get realized into a solid brand or product.
If you’re planning to start business, you might want to take time to ask yourself some crucial questions before getting the ball rolling. We’ve listed out a few important questions below so you can better plan your next steps as a budding entrepreneur.
Do you need to insure your business?
The U.S. Small Business Association generally recommends that you insure your business right off the bat. While laws and insurance policies may change depending on your country, you should look for general liability insurance with coverage for your entire business.
You can then look into insurance policies that are specific to your business type. Do your research, as these policies will depend on whether you’re offering a product or a service, and what kind.
Do you have managerial skills?
One of the reasons why businesses fail is because many entrepreneurs don’t realize that running a business demands a long-term mindset, something that many first-time business owners fail to cultivate. In our previous post on ‘7 Management Skills That Could Make or Break Any Leader‘, we talk about how having a vision for your business is key to its longevity. Good business owners have forward-facing mindsets and other managerial skills that make the path to success much easier to follow.
Should you register as an LLC?
The legal designation and framework for your business is crucial, because it decides how your business will be taxed, what industry your business can work in, and personal liability. One example of a good structure is the LLC.
AskMoney explains that an LLC is essentially one of the most flexible business structures. It can be used for a large, multi-partnered business or a sole proprietorship, and makes acquiring assets much easier. LLCs also have greater freedom in terms of taxes, yearly member meetings, and much more, which makes it an attractive option for many small business owners.
What is your business plan?
According to The Balance, a business plan is useful for planning everything from ten year plans to short term goals. A business plan is the roadmap you’ll need to follow in order to ensure the success and longevity of your business, and contains everything from budget to market analysis.
Your business plan shouldn’t be static, but should evolve as the needs and goals of your business evolve. While it’s good practice to start out with a solid plan, you also need to learn how to adjust goals and resources in order to push for more growth and development. A business plan is a tool, not a crutch, to make your business grow better and last longer.
Where will you get the funds?
Finally, one of the most important things you’ll need to figure out before starting your business is where you’ll find funding. The Muse outlines several options for finding funding, including personal capital, government loans, and much more.
Funding is essential for operational expenses, product development, marketing, and much more. If you’re serious about getting your business off the ground, you need to find backers who are willing to believe in your product and company.
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About the Author
Eugen Spivak is a multi-award-winning author, business strategist, and a business coach. Eugen is the founder of the Canadian Institute of International Business, an organization dedicated to bringing practical and hands-on business education for modern business leaders.