Part One - Chapter One
When you want to start a business, there are a few basic things you need to do in order to get the foundation. You can change these as you go, but it is important to have a foundation, somewhere to start from, and a simple structure to use and to manage. Simply thinking about it will not be enough. Without a firm foundation, there is an ever-greater chance that something, somewhere, sometime, will fail and what you have built will come crashing down, or fail even before you begin. Look at some of the biggest structures or businesses in the world and see what sort of foundations they sit upon today. I can almost guarantee you that they did not start on what they have now, but they most certainly started on some sort of foundation. It may have been as little as a loan from their parents with the agreement to pay it back and until paid the parents would oversee the use of the loan, or a group of three friends signing a simple Memorandum of Understanding together. Either way, there is almost always some sort of basic setup that was the catalyst to every business. Some of the more important basics of starting a business are but not necessarily restricted to the following: Choosing a business structure that you want to use. Are you a person who likes power and control? If so, you want to lean towards full ownership (a type of sole trader or 100% owner). Or are you wanting to have some other people invested in the business also? The structure will be everything and you need to make sure that you get this one right from day one as it can be a big issue later on, especially when serious decisions may need to be made. A sole owner-style position is often the best approach at first so that your vision can be developed and then when you are ready, you can decide on a more detailed structure. Registering for your business number and taxes. These are vital as you do not want to be getting the government or Tax Man on the wrong side of you from day one. It is better to have them on your side wherever you are rather than having them look over your shoulder and sticking their nose in unnecessarily. Choosing a business name. Without a doubt, the most exciting part of setting up a business is the image or branding by which people will recognise you. It is one of the most exciting parts of the basic set up and can be a defining moment in any business start-up. A good name can carry its own weight into any battle with a competitor and given the right branding and positioning can become an everyday word people use to describe things. Just look at Google, for example. Setting up record keeping and accounting systems. This is one of my least favourite parts of a business, yet it is one of the most important to get right. It is vital and I mean vital to have a good record keeping system in place. Keeping track of your income, expenses, records, customers, etc. will help you to see where improvements can be made, where costs can be saved, and who the customers are. Everything about this basic step has an important part to play in the whole scheme of your business so DON’T SKIMP ON IT.Ensuring you understand your legal obligations.Like your taxes, you need to make sure you are aware of your legal obligations and the laws that may govern what you are doing. An engineer needs to know what laws and regulations they must work within when designing a bridge, or else the builders could be put in harm’s way when construction begins. Laws have been designed to help you, not hinder you. Many people find them constraining but in reality, many have been written based on the mistakes of the past and are there to ensure that those mistakes do not happen again. One of the biggest mistakes people generally make, and i'm guilty of it too, is wishful thinking. You want something to be true, even if it is not true, and so you ignore the real truth because of what you want to be true. This is a very difficult trap to avoid. Elon Musk Arranging insurance. This is a strange one for a basic start up point, but in many cases, it will save you from headaches and pain later if it is in place. There are many different types of insurances you can get, so speak with a professional about what you may need. Start with the basics first and build upward from there. It is always important to understand that protection in all its glory can only be helpful to you so take it seriously.
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