Blog post by Mary Shannon of seniorsmeet.org
How To Set Up Your Small Business for Success
Knowing How To Set Up Your Small Business for Success and Starting your own business is considered part of the American dream. Anyone with talent and an idea, regardless of their age or background, can become an entrepreneur and launch a business. But of new business start-ups, 75% will still be operating and growing in two years, while 25% will fail. Setting your company up for success helps you be one of the 75% that makes it and continues to grow. Here are some tips to help you get started, brought to you by TCG Insurance Solutions.
Contact a Business Advisory Service
All successful businesses start with a solid overall plan that changes over time as the company grows. No matter how much business acumen you have, it is wise to get outside help on this important step. Contact a business advisory for expert customized guidance on what your company needs to succeed. Advisers can assist you with:
- Identifying your startup funding needs
- Creating a marketing strategy
- Designing a cash flow process
- Planning your workforce needs
It’s also smart to check in with your adviser regularly for insights on how to keep your business on the right track as it grows.
Secure Enough Operating Funds to Launch
Make sure you have enough funds to launch your business and sustain it until it becomes profitable. As the Journal of Accountancy explains, this will involve making some projections based on best case scenario, worst case scenario and your most likely expectations. It’s not unusual to require some funding beyond your own savings; you can get financing through investors, borrowing money from family or friends, applying for a small business loan from the U.S. government or a financial institution, or by applying for a grant.
If you only need a small amount to start, you could charge expenses to your credit card or borrow from your retirement account. Another popular option is using a crowdfunding website, which works especially well for creative endeavors.
If none of these options work for you and you are turned down for a bank loan, apply for a microloan from a microlender. Whatis.com notes this type of non-profit service offers loans to low-income individuals and businesses. It has a more flexible underwriting policy and requires less documentation than a traditional loan. Microlenders are available across the U.S. and there are several online options as well.
Choose Services that Specialize in Small Business
You may not be able to hire employees at first, but you can still take advantage of others’ talents and skills to do tasks you can’t do yourself. Freelancers can be hired to build a website, create marketing material, manage your social media presence or do your business forecasting.
The businesses with whom you conduct your affairs can be selected strategically, too. For instance, you can choose a bank that offers a business bank account with key features, like interest-bearing checking and no monthly fees. It’s also useful if it works in harmony with your payroll software and has instant deposit capabilities.
Hire the Right People for your Team
If you are hiring employees, choose those who are passionate about their work, have the skills needed for the position and can be counted on to be dependable. To find great candidates, ask friends or other business contacts for recommendations and use the services of employment websites or LinkedIn. For very specialized or highly technical positions, it may be worth the expense of hiring through a recruiting agency like Robert Half or The Bachrach Group.
Network with Other Business Owners
Getting the word out about the products or services your company offers is of utmost importance. A great and inexpensive way to do this is to take advantage of business networking opportunities in your area, such as:
- Chamber of commerce events
- Small business conferences
- Trade shows
- Business professional associations
Taking these steps helps to set up your business for success and prepare it for future growth. It puts you in a favorable position to be part of the 75% of small business owners who celebrate their second anniversary of ownership. We hope you found our information helpful on How To Set Up Your Small Business for Success.