Things You Should Never Forget When Starting A New Company

Posted on Dec 1 2015 - 8:38pm by Editorial Staff

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Starting a new company is always going to be a tricky process. You never quite know how things are going to pan out until you take a leap of faith. It doesn’t matter how much research you perform because some issues will appear out of nowhere. That said, there are certain things no new business owner should forget when putting their plans in place. The information on this page will help to ensure you don’t overlook anything important. Believe it or not, more than 50% of all new firms collapse and close within the first twelve months. That is why you need to focus on your goals and take all the advice you can get.

There is no getting away from the fact that a certain element of luck if often involved in success. As the old saying goes, it’s not what you know, it’s who you know. However, there are many ways you can increase your chances of getting lucky. You should take the points made in this article very seriously because they could make or break your company. Failure to cover the basics could mean your operation struggles to make a profit. With that in mind, let’s see if we can help.

Drawing up your business plan

People who start businesses without creating a plan are doomed to failure. There is no way of knowing about hidden costs, but you can prepare for the obvious ones. You’ll find lots of professionals who will help to construct your plan if you get stuck. However, you’ll have to pay a decent fee for their time, and so it makes sense to do it yourself. Just make sure you include information about the structure of your firm, and how you plan to make a profit. It’s also wise to highlight the route you plan to take if everything goes well. It’s easier to get money from investors if you can show them your plans.

Approaching the bank for investment

Lots of new business owners think there is no point approaching the bank for investment. They’ve heard about the financial crisis and the fact that bank managers are pickier these days. That is why lots of company bosses choose to visit private equity firms or opt for crowdfunding. Both of those solutions are good, but it’s always better to use the traditional method. So long as your business plan is attractive and you don’t have a bad credit history, you should get the cash you need. There are lots of online guides that tell you how to impress your bank manager. So, you should start your research today.

Working from home

In many instances, it is possible for new business owners to work from home during the early stages. That is a massive advantage because it means you can charge a percentage of your utility bills to the company. You can also keep more money in the bank because you don’t have to pay expensive rental prices. Of course, there will come a time when you need to expand and move to dedicated premises. Just try to put that off for as long as possible if you want the best chances of success. Working from home might disturb your family life, but it’s for the best in the long run. When you’ve created a decent profit, and you have more cash in the bank, you can contact commercial real estate agents.

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Getting credit cards to help cash flow

Cash flow is often a major issue for new business owners. For that reason, it makes sense to apply for credit cards when you open your bank accounts. However, sometimes the bank won’t offer the best interest rates available on the market. That is why smart business owners will spend a lot of time reading business credit card reviews online. There is always a better deal to be had somewhere in the marketplace. Getting the lowest rate of interest possible will benefit your company in the obvious ways. Your monthly repayments will be lower, and you will clear more of the debt. The only real alternative is to take out an additional loan. You don’t want to do that unless every credit card company declines your application.

Outsourcing jobs to other firms

The last thing you want to do is land your business with huge monthly wage bills. Also, employing lots of people during the early stages can mean you have too much responsibility. With that in mind, you should look towards outsourcing certain tasks to make your life easier. For instance, there is no point hiring customer service staff when there are external companies that could handle the job. Likewise, paying for a web designer and developer to work on your premises doesn’t make sense. Just take a look at your competitors and how they operate in the modern world. We guarantee most of those firms outsource work to increase efficiency and productivity. Make sure you read testimonials from other clients to ensure you are getting a professional service.

There are a few other things we’d like to mention before you leave us today. Firstly, it’s sensible to look towards recruitment agencies when finding the best team members. Advertising your positions online will attract too many applicants and make the process difficult. The benefits of using a recruitment specialist are obvious – you can swap and change workers whenever you want. So, whenever the company sends you someone who is less than enthusiastic, you can ask for a replacement. You don’t have to worry about the holiday or sick pay, and your responsibilities are few.

Also, it’s worth saying that health and safety is a big issue these days. Your company could lose everything very quickly if someone injures themselves on the job. Considering that, appointing a health and safety officer from day one is the best way forward. Put them in charge of making sure everyone uses equipment properly, and you should encounter too many problems. They can also perform risk assessments and file reports one their findings.

About the Author
Editorial Staff

Editorial Staff at I2Mag is a team of subject experts led by Karan Chopra.