Going into business by yourself is a risky venture and many that start don’t make it passed the first year, wasting investment. The business world is full of competition, but there is always room for inventive new products that are the solution to a problem, or that use technology to revolutionise society.
Less drastically, it could be that there is a need locally for companies that can offer better service than larger national companies. Whatever your venture entails, this is a step by step guide that will help you get your business off the ground and help you to waste time by avoiding common mistakes.
Motivation and Support
The first thing you need is the passion and desire to work long hours and get through the barriers that people will throw at you. As a CEO, you will carry a lot of responsibility, and to start with you are likely to be the point of contact for most customers. This can be draining and if you are doing well it is likely you will be a victim to your own success. This can be when it is ideal to have a good support network around you, such as family or friends, to remind you of why you are putting yourself through it.
Hire an Accountant
Having the expertise of someone who knows money is very important to your business and many businesses initially make the mistake of trying to keep track of spending, taxes, and income themselves.
There are many ways to save money, or manage it so that you can invest in your company efficiently. For example, an accountant may see that you’re paying too much in business tax and advise you to complete a business rates appeal, which could potentially save your company thousands of pounds if you’re significantly overpaying in tax.
Having someone to stop you from losing money can help relieve stress and although it is a cost it can save you more money as you look to grow. This account for more than just an accountant. Whether it’s your local solicitor, business development advisor or even your commercial property agents in Manchester if applicable – getting things done right the first time will save you money in the long run.
Registering as a business
Before you can start trading, hiring employees, or even renting commercial property, you need to register as a business. Different countries will have different restrictions on how to register, but in the main you will need a residential address in that country and proof that you have the right to work. Next you will need to decide on the type of ownership. If it is just one person who owns, runs, and is liable for the company then this is acting as a sole trader. If there is more than one then it becomes a partnership and different law apply.
Writing a business plan
A business plan is essential for keeping you organised and to improve the chances of you sticking to the goals you set beforehand. It is more than likely that some parts of the plan will need to change but it should give you an outline.
If you require investment or a loan, banks and investors will expect a detailed business plan and you will be expected to stick to it so that they will be guaranteed their loan back or a return on the investment. There is no point in exaggerating the impact of your business as it will cause you issues if you have not reached the lofty heights that you promised.
Intellectual Property Law
The most common application of intellectual property law is through the use of patents, which prohibit other companies from copying a design in a zonal restriction. Patents are important for inventors and business owners, as it allows them to earn money from their creations without someone who can make it cheaper undercutting them.
Another form of Intellectual law is through confidentiality agreements which are often used when working alongside another company on your product. It will stop them from leaking information related to the product legally. Confidentiality agreements are also important when seeking investment.