Some new businesses fail within the first year of operation. The reason for this is not because the idea wasn’t good enough, but because the entrepreneur didn’t have all the things of running a business.
This includes having a business plan, getting enough startup capital, seeking legal assistance, and having the right business equipment, just to name a few.
We spoke to entrepreneurs who have started and run successful companies about what is needed by a startup business and these are the main things they told us.
A Business Name
You’ll need to have and register a business name with your state government. The name must be unique and not similar to any existing trademarks, so check with local businesses before choosing one.
A logo or symbol that represents your business identity. A logo can help customers recognize your brand even if they don’t remember its name or what products or services it offers.
A Business Plan
This is the one thing that sets your business apart from all others. It’s like a road map for your company, telling you where you’ll go, who you’ll need to hire, how much money you’ll need, and so on. It also helps you create an image for your company by providing details about who you are and what you do.
You can’t just rely on yourself to get everything ready and done. You need help from legal services or legal websites.
Legal services or legal websites; will help you register your company in the right departmental offices. They will also assist you in getting all the necessary permits and licenses needed by law.
A Tax ID Number
This number identifies your business as an entity separate from its owners. The IRS requires that all businesses pay taxes on their profits, but without a tax ID number, they can’t collect those taxes from you.
You will also need this number if you want to open a bank account or apply for credit cards or loans for your business.
This is required by law, and it shows that you are operating legally. If you are selling goods or services, you will need to get an occupational license from your state’s department of revenue or taxation.
This includes operating funds needed to cover costs during the first 3 months or so until revenues begin rolling in. Some businesses will require more startup capital than others depending on their industry and location.
For example, restaurants often require more capital because of higher expenses like rent, equipment purchases, and food costs compared to other industries such as retail stores or accounting firms where you don’t need much equipment or inventory upfront.
Business Bank Account
Open a separate bank account for your business. Do not use personal funds to pay for any expenses related to the business. That could cause problems if anything goes wrong.
Home Office Equipment
Equipment is a must for any business, whether it’s office or industrial. Whether you’re starting an online business from home or opening up a retail shop, you need to make sure that you have the right equipment. The following are some of the most common start-up business equipment:
Computer, Printer, Phone
You’ll need computers, printers, fax machines, and phones so that customers can reach you easily when they have questions about products or services they are interested in buying from your site online or offline.
This is important because it helps keep track of all transactions in your company as well as other financial matters like taxes and payrolls among others. You may opt for a full-time accountant or hire someone who only does accounting work part-time.
The choice is yours but it makes sense to hire someone who has experience in doing this kind of job since he/she will know exactly how things work and how long it would take before everything gets done properly.
Employment contracts are very important in any business because they ensure that workers are treated fairly and paid on time without any issue of discrimination or harassment.
The contract should also outline how much vacation time employees are given and how many holidays they receive each year. It should also outline how much sick leave employees get, as well as any other benefits they may receive such as health insurance coverage or retirement plans.
If you’re a start-up business, it can be tempting to try to do everything yourself. The reality is that the more time you spend on administrative tasks and other non-revenue generating activities, the less time you have to grow your business. It’s better to delegate some tasks such as marketing so that you can focus on other areas of your business.
Marketing can be done in many ways, including advertising, public relations, direct mail, and sales promotion. Marketing can also be used to build brand image and loyalty.
A marketing agency will help you craft an effective strategy that includes everything from SEO and PPC ads to social media campaigns.