Article by





5 Things to Know About Setting Up a Company


2016-12-05 14:15:36
Some people are born to be business owners. Maybe it was an idea that came to them during high school or college and they were able to make a life from it. Others are thrust into being business owners through situations such as losing a job and starting their own business to make ends meet. Either way, when the opportunity knocks to start your own business there are five things which you need to know about setting up a company. It does not matter if you are seeking financing from day one or not, you will want to make sure you follow these tips to get your company going on the right foot.

1) Have a Plan

Mike Tyson famously said that ‘everybody has a plan until they get punched in the mouth.' While there is a fair bit of truth in this quote, it is equally true that you need to know what you will do after getting punched. Ok, you probably won't get punched while running your business – at least I hope not. But the reality is that you are bound to face setbacks while trying to grow your business.

As such, the goal of a plan is not to know how everything will work out. Let's face it, if you knew what would happen in the future, you would be busy consulting world leaders. Instead, you have a plan in place to have a good idea of how the market in your area works, and what are the weaknesses of your competition.

In addition, a good plan will help you to map out your pre-launch (also known as go-to-market) strategy. In fact, this article from the Harvard Business Review is a great read for anyone starting their own business. The key takeaway is to think about what your customers want and then address that need. This is what your plan should be about. The rest is execution – basically, get it done better than anyone else.

2) Don't Assume Anything

Maybe this is not your first business, or maybe you were involved in building up another company. I have some news for you. What might have worked in the past is not always guaranteed to work in the future. How is this possible? First, the market has changed. Second, you have changed. Third, you might know what was done to drive the previous company, but do you know why it was done?

You would be surprised how many people were early employees at fast-growing companies, know relatively little about the reasons why certain decisions were made. This is dangerous. Making decisions based on faulty assumptions can have significant consequences. So, don't assume anything. Your experience is useful, but you should understand why things were done the way there done to correctly apply them to your current situation.

3) The Quickest Ways to Lose Friends

Either hire them or borrow money from them. The result is almost always the same. Odds are your friend will never see your company as their company. As such, you should avoid hiring your friends like the plague. Instead, let them become your best customers.

In terms of borrowing money from your friends. This is another no-no. Nothing can strain a relationship more than owing a large amount of money to a close friend. This brings me to my next tip on setting up a company.

4) Business Credit

Unfortunately, many owners think because they have good personal credit they can rely on that to finance the business until they get sales up. While this is true to a certain extent, you want to start building business credit from the day you set up your business.

This starts by incorporating, opening a bank account, and getting a credit card in the name of your business to name a few. You see businesses tend to be heavy users of credit and if you rely on your personal credit cards and credit lines to finance the business then you are not only risking your credit score, but you could be risking your personal property.

Access to cash is the most important raw material for any small business, so you want to make sure that have set yourself up to succeed. Do this by taking the steps to get your business credit profile on solid footing from day one.

5) Let Go of Your Fear of Failure

Great, you are making the leap and are starting your own business. One thing that almost every successful entrepreneur has in common is that they embrace their failures. In fact, most successful entrepreneurs had to suffer through multiple setbacks before they made it big. The lesson from this is don't be afraid of failure, learn from what went wrong so you can make it bigger and better the next time.




have your say


more in Business
Different E-Cigarettes on the Market
5 Things to Know About Setting Up a Company

With cigarettes banned from restaurants, movie theaters, hotel lobbies and the workplace, many smokers are looking for an alternative. E-cigarettes are not new to the market. In fact, the first one hit the shelves between 2003 and 2004.

How to Vet Potential Business Partners with a Free Company Check
5 Things to Know About Setting Up a Company

All's fair in love and war, but when it comes to business things can go very sour, very fast. All too often, business partnerships start out all sunshine, roses and optimism, before rapidly going South. Yet it doesn't have to be this way. Although the majority of partnerships are destined to ultimately fail, some go the distance, providing support and success for both parties.

How to protect your business idea
5 Things to Know About Setting Up a Company

Whether starting a new business or wanting to ensure that your well-established company stays safe, it is important to ensure that all assets are protected. These include not only physical assets, but ideas and intellectual property. Of course, protecting physical and financial assets is still necessary if you want the idea to remain viable as a profit-making business.

5 Advertising Trends That Every Advertising Agency in Australia Should Leverage
5 Things to Know About Setting Up a Company

According to the Big Australia digital report published by Responsys, 74% of businesses with websites carry out online marketing.

Everything you wanted to know about McDonald's
5 Things to Know About Setting Up a Company

The world's largest chain of fast food restaurants is operating in 119 countries and serves roughly 68 million customers daily. Welcome to the daily life of the McDonald's Corporation.

Business is good when relationships are involved
5 Things to Know About Setting Up a Company

Open a browser, type in 'dating', and you'll be inundated by literally hundreds of thousands of websites dedicated to connecting people in a dating situation to one another. Go to a chatroom and there will be people ready to hook up either for serious relationships or just a quick one. It's a fact that in today's world, relationships mean business and millions of dollars exchange hands just to connect people. Heck, even the seemingly innocent social networking sites that people visit every day work in the same way.

30 Emerging Jobs of the Future
5 Things to Know About Setting Up a Company

A new workplace trends reports has just been released by a company called Sodexo. The report mainly addresses the key issues affecting the workplaces of today and tomorrow and offers solutions to them. In addition to identifying the ten significant workplace trends, it also includes an article about 30 Emerging Jobs of the Future.

Scott Adams, Mark Fidelman, Beverly Macy to speak at IBM Connect 2014
5 Things to Know About Setting Up a Company

Among the featured speakers at IBM Connect 2014 are keynote speakers Scott Adams, Dave Lavery and Mark Fidelman, Beverly Macy.

Point of Sale - Mind on your Business
5 Things to Know About Setting Up a Company

The markets are abuzz with innovative technologies brought to your door-steps to make your life easier. Technology has been a driving force that propels the financial health of your business and simplifies its administrative arm. Point of Sale is one such concept, which is a shot in the arm for hospitality and retailer businesses. With its high processing speed, data integrity, low cost and wide scope of functionality, it is a powerful product which has taken the market by storm.

6 Tips to Cut Costs in a Laboratory
5 Things to Know About Setting Up a Company

Sadly, science - as vastly important as it is - does not have unlimited funding, and the fact of the matter is that the majority of laboratories in operation today have to work with constricted budgets.

thecheers.org

Welcome to TheCheers! We've been around for a long time now, since 2004, publishing articles by people from all over the world. Roughly 300 people from 30 different countries have written for us over the years. Should you want to become a volunteer contributor, be sure to contact us!

Random
Entertainment Blogs
get in touch

You can contact us via The Cheers Facebook page or The Cheers NEW Twitter account.