Opening a business can be an exciting and overwhelming experience all at the same time. There are so many things to think about – from the initial planning stages to the day-to-day tasks of running your business. If you’re not prepared, it’s easy to make costly mistakes. That’s why it’s important to remember these key points when opening a business.
1) Have real expectations:
It’s essential to be realistic when starting a business. Understand that getting your business off the ground will take time, effort and money. Don’t expect to profit immediately, or even in the first year. Instead, be patient and focus on building a solid foundation for your business.
It’s also important to understand that not every business is successful. In fact, most businesses fail within the first few years. According to the Small Business Administration, about 30% of new businesses survive their first two years, and only about 50% survive their fifth year. So, it’s essential to go into your venture with your eyes wide open and realistic expectations.
Of course, this doesn’t mean you shouldn’t aim high – setting big goals can help push you to achieve more than you thought possible. Make sure your expectations are realistic and that you have a solid plan to reach your goals.
2) Register for LEI:
Get an LEI code to ensure your business complies with international standards. An LEI code is a unique identifier that all legal entities need to have to be able to operate in the global economy. Your business will need an LEI code if you want to:
– Apply for credit
– Register with a stock exchange
– Make cross-border financial transactions
You can apply for an LEI code in India through an LEI issuing authority. The application process is simple and straightforward, and you can get your code within a few days.
3) Have a business plan:
A business plan is a roadmap for your business. It outlines your goals, strategies and how you plan to achieve them. Your business plan should also include financial projections for your first few years of operation. Creating a business plan can seem daunting, but plenty of resources are available to help you.
Once you have your business plan in place, it’s important to review and update it regularly as your business grows and changes.
4) Get the right licenses and permits:
Before you can start operating, you’ll need to ensure you have all the necessary licenses and permits. The requirements vary depending on your business type and location, so it’s essential to do your research. You can start by checking with your local chamber of commerce or small business development centre.
If you’re selling products, you may also need to get a sales tax permit from your state. And if you’re hiring employees, you’ll need to register for unemployment and workers’ compensation insurance.
Again, the requirements vary depending on your business and location, so it’s essential to research and ensure you have all the necessary licenses and permits before getting started.
5) Get insured:
Insurance is an important part of any business, but new business owners often overlook it. There are a variety of insurance policies you should consider, including:
– General liability insurance: This protects your business from lawsuits and other financial damages if you’re found liable for someone’s injuries or property damage.
– Product liability insurance: This protects your business from lawsuits and other financial damages if one of your products causes injury or property damage.
– Professional liability insurance: This protects your business from lawsuits and other financial damages if you make a mistake in your professional work (such as giving bad advice to a client).
– Business interruption insurance: This covers lost income and expenses if your business has to shut down temporarily due to a covered event, such as a fire or natural disaster.
In conclusion, these are just a few key things to remember when opening a business. Of course, there’s a lot more to it than this, but if you keep these things in mind, you’ll be off to a good start.