Starting your own business is a journey like no other. You’re faced with an explosion of emotions like excitement, fear, doubt, happiness, confusion and more! And this drives off aspiring entrepreneurs, the whole process of it all that’s just overwhelming.
It’s not a secret that starting your own business can be challenging and an overall tedious process. But tons of things make it worth it – becoming your own boss, having control over your business, having flexible hours and learning more along the way!
So before opening your own business consider starting out small and then grow along the way. This is also practical since it costs less to start, maintain, manage, and so on. Plus this can be a way to test out the waters if running a business is really for you.
If you’re ready to run a small business, down below are essential things all small businesses should have!
1 – A concrete business plan
A business plan acts as a map that’ll guide you through your business journey. In a business plan, you’ll have everything from marketing, business description, strategies and so much more. So basically it covers everything you need to reach your business’s monthly or annual goals.
You need to develop a business plan before getting a place, supplying your business and even hiring employees. To help you out down below is what a business plan will usually consist of.
What are the 7 parts of a business plan
This should consist of a concise overview of your business. This will hold your business’s name, location, products & services, mission statement, and purpose of your plan.
This section should consist of the what, how and whys of a business. This should hold your business’s legal structure, an overview of products & services, company summary goals and brief history.
Products & Services
This section should consist of a brief overview of your products. You need to include a product and service description, its market role, your product’s shelf life, patent and research & development.
This should include your market research. Such as your target market, your business’s strengths & weaknesses, marketing statistics and projected marketing data for your products and services.
Strategy and Implementation
This is a section on what your marketing strategy is and how you’re planning to implement it. This should consist of how you’ll promote your business, data on operating hours, the costs of pricing and advertising, and information on the process and labour.
Organization and management team
This section will include your company’s organizational structure and board. Your board should identify the owner, the board of directors, the management team and on-field employees. This should consist of an employee description, information about the owners, employee profiles and a list of advisors.
Financial plan and objectives
In this section, you’ll need to tackle the following: budgets, financial statements, financial analysis, financial perspective and financial goals.
2 – An efficient way to protect your business!
The first few years of any starting business are crucial. This will determine if your business will fail or carry on. So it’s essential to protect it the best way possible – by getting business insurance.
A misconception about insurance is that it’s an extra expense, but in actuality, it’s efficient security. This protects your business in various aspects like property, auto, inventory, staff and even customers and more.
As a starting business, try out sme business insurance. This is coverage tailored for small to medium-sized enterprises and also works well for starting businesses. Sme business insurance costs less and offers the same coverage as other business insurance.
And if you decide to grow your business, then you can decide to switch to a different plan. But as recommended by seasoned entrepreneurs, always go for things you ONLY need. And sme business insurance is just the right coverage for a starting or a small to medium-sized business.
What does sme business insurance cover
This covers any damages caused to your commercial property due to natural calamities, vandalism, fires, earthquakes, floods and so on. Depending on the level of coverage you get, this can also cover damaged items within the property.
Commercial vehicle insurance
This financially protects any damage caused to your company’s auto due to an accident during service. For instance, if your company auto is being used for work and it happens to get into an accident, this policy will cover the cost.
Professional liability insurance
This covers claims of error and negligence involving a product or service. For instance, if your crew messes up a service, this policy will be able to cover the damages.
General liability insurance
This covers costs due to bodily injury and property damage that has occurred within your premises. For instance, a customer accidentally slips on the floor, any injury or damage will be covered by this policy.
Workers’ compensation insurance
Workers who are injured or ill in the course and scope of their employment are covered for medical bills, missed income, and rehabilitation expenditures.
These are some of the common policies businesses get, but there are many more others such as business interruption insurance, cyber protection insurance and so on.
3 – Have funding!
Last but not least is funding. Starting a business isn’t cheap and going out of pocket isn’t ideal. Risking your own money is something not a lot of businessmen would recommend, that’s why consider other options.
Today, you can now find tons of ways to fund your business. Depending on what business you’re running, it may vary. For instance, in shelters, you can get funding from donations, charity fairs and so on.
There are various ways to fund your business and to give you an idea, here’s a list: ● Borrowing from a friend.
- Getting a loan from traditional banks.
- Borrowing from a lender.
- Online lending.
These are the common ways people fund their businesses without going out of pocket. But remember, each of these options holds its own different processes, regulations, requirements and so on. Consider one you’re eligible for and comfortable with.
Now you know the 3 essential things your business needs, you’re now one step closer to the right direction. Knowing these vital things will surely give you the upper hand against competitors. Plus, you’ll be able to step up your business game 5x better!